Billionaire businessman and philanthropist Ratan Tata has led several Tata companies when he was chairman of the Tata Group. Under his leadership, the group thrived in the competitive market. Even now, the group continues to grow. One of the companies of Tata Group, Tata Consumer Products Ltd (TCPL), has announced acquisitions of Capital Foods, which owns the popular Ching's Secret brand, and Fab India-backed Organic India for a combined enterprise value of Rs 7,000 crore. The latest buyouts will bolster the Tata Group company in the fast-growing and highly competitive market.
The Tata Group arm TCPL, which has a market cap of Rs 108000 crore as of January 12, will acquire 100 per cent equity shares of Capital Foods at an enterprise valuation of Rs 5,100 crore. It will also acquire Organic India, which operates in the health and wellness category, at an enterprise value of Rs 1,900 crore. TCPL owns iconic brands such as Tata Tea, Tetley and Tata Salt and had a revenue in FY23 of Rs 13,783 crore. In 2011, TCPL acquired Bengaluru-based Kottaram Agro Foods for Rs 155.8 crore to expand its product portfolio.
The latest move will help TCPL to expand its portfolio into the packed food segment. the company is transforming itself into a full-fledged fast-moving consumer goods company (FMCG). "The acquisition is in line with the Company's strategic intent of entering into new adjacent high growth/ attractive margin categories in the food and beverage space," said TCPL. Fab India-owned Organic Food is in the business of manufacturing and sale of organic products, including tea, infusions, herbal supplements and packaged foods.
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