Food and Beverage Business
Finance

Tata Consumer Products Acquires Capital Foods and Organic India

Tata Consumer Products Acquires Capital Foods and Organic India Tata Group Food and Beverage Business

Tata Consumer Products has recently acquired two Indian food companies, Capital Foods and Organic India, for a combined fee of Rs70bn ($845m). This strategic move aligns with the company’s aim to expand its product portfolio and target fast-growing/high-margin markets in the food and beverage industry.

The acquisition involves Tata Consumer Products purchasing 75% of noodles and condiments maker Capital Foods upfront. This purchase also includes acquiring the remaining shares of the Ching’s Secret brand within the following three years. Additionally, the company will acquire Organic India for an upfront fee of Rs19bn.

Sunil D’Souza, the MD and CEO of Tata Consumer Products, expressed enthusiasm about the acquisition, stating [food and beverage industry trends, food and drink business, and food and drink consumer trends], “We are excited to welcome Capital Foods into Tata Consumer Products. We believe this is a good strategic and financial fit.”

Regarding Capital Foods, it is known for offering “Desi Chinese foods” such as noodles, sauces, and soups under the Ching’s Secret brand. Similarly, Organic India specializes in selling supplements, herbal teas, ghee, and honey, and caters to more than 40 markets worldwide, including the US.

Moreover, the move is expected to open significant market opportunities in the fast-growing non-Indian cuisines segment, leveraging Tata Consumer Products’ established sales and distribution platform. D’Souza emphasized, “The strong brand recall of Ching’s Secret and Smith & Jones coupled with our operational strength across channels makes us extremely confident of driving topline growth and realizing cost synergies.”

Undoubtedly, this acquisition reinforces Tata Consumer Products’ commitment to driving business growth and expanding its market presence. This is an investment that will benefit the company strategically and financially, helping to achieve a stronger foothold in the food and beverage industry.