Ratan Tata's Tata Consumer Products is reportedly competing with ITC in the race to acquire a majority stake in Fabindia-backed Organic India. The duo are the only two major firms in a bid to acquire Organic India, which specializes in organic and ayurvedic health products, Moneycontrol reported.
Tata Consumer Products has a market capitalisation of Rs 90,671 crore as of December 20. Fabindia holds a 64 per cent stake in Organic India. Further, 17 per cent is with the founder promoters, 15 per cent with Premji Invest and the rest is owned by employees and the ESPS trust.
The report suggested that the discussions between Tata Consumer and Organic India are still progressing. It added that the Tata company is leading in the bid war against ITC. "Tata Consumer wants to focus on the health and organic products segment and Organic India fits in with their investment thesis. The talks between both the parties are at an advanced stage," sources quoted by the report said.
However, there's no official announcement yet regarding the deal or if these discussions will lead to a transaction or not. Presently, Sunil D'Souza has been serving as the Managing Director and Chief Executive Officer of Tata Consumer Products. He has been in the post since April 2020.
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