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Tata Consumer to acquire Capital Foods for Rs 5,100 cr, Organic India for Rs 1,900 cr in all-cash deals, ET Retail


New Delhi: After months of negotiations, FMCG major Tata Consumer has signed definitive agreements to acquire 100 per cent equity shares of Ching’s Secret maker Capital Foods and FabIndia-backed Organic India, the company said in a BSE filing on Friday late evening.

As per the filing, TCPL will acquire 75 per cent stake in Capital Foods, owner of the brands ‘Ching’s Secret’ and ‘Smith & Jones’ at an enterprise value of Rs 5,100 crore.

“75% of the equity shareholding will be acquired upfront and the balance 25% shareholding will be acquired within the next three years,” it said in the filing.

In its investor presentation, TCPL said that it will have full operating control and a majority in board representation at Capital Foods. Additionally, Ajay Gupta, the founder and chairman of Capital Foods will continue as a consultant.

ET reported the development in its January 12 edition.

The overall size of the categories in which Capital Foods operates is estimated at Rs 21,400 crore, TCPL said. Capital Foods’ turnover for FY23-24 stood at approximately Rs 750 – 770 crore.

On the other hand, Tata Consumer will acquire a 100 per cent stake in Organic India, a food and beverages and herbal and traditional supplements brand for Rs 1,900 crore. Organic India has been present in the market for over 25 years and has a footprint across 48 countries.

In its filing, Tata Consumer said that the estimated turnover of Organic India for FY 23- 24 is approximately Rs 360 to 370 crore.

“The Total Addressable Market for the categories that Organic India is present in is Rs 7,000 crores in India and Rs 75,000 crores in international markets where Tata Consumer has a strong presence,” TCPL said in the release.

With the above-said acquisitions, TCPL aims to expand its product portfolio and its target addressable market in fast-growing/high-margin categories.

Last year in August and September, ET was the first report of the ongoing acquisition talks.

  • Published On Jan 12, 2024 at 10:32 PM IST

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