Feb 4, 2021
Tata Consumer Products is planning to buy Bengaluru-based Kottaram Agro Foods for Rs. 155.8 crore to expand its product portfolio. Kottaram Agro Foods (KAF) is predominantly engaged in the business of healthy breakfast cereals and millet-based snacks under the trademark Soulfull.
The company will acquire 100 percent of the issued and paid-up equity share capital of KAF and the move is consistent with TCPL’s calculated determination to expand its product portfolio, and participate in multiple consumption occasions.
Tata Consumer Products trying to enter into new adjacent categories in the food space and this deal marks its entry into multiple new consumption occasions with new adjacent product categories, it added.
This acquisition will allow TCPL to expand its product portfolio into the fast-growing ‘on the table’ and on the go categories and to participate in newer consumption occasions. There are also significant synergies possible with the existing business of TCPL in areas spanning distribution, procurement, and logistics.
Over the cost of acquisition, TCPL said, it has consideration of Rs. 155.8 crore and the transaction is expected to be completed in the fourth quarter of FY 2021, according to TCPL, formerly known as Tata Global Beverages
Soulfull synergizes well with TCPL’s existing product portfolio and distribution network as well as the supply chain. Brand Soulfull was launched in 2013 and in FY 2019-20.