Tata Consumer has finalized agreements to acquire Capital Foods and Organic India in separate all-cash transactions. According to a BSE filing made recently, Tata Consumer will acquire a 75% stake in Capital Foods at an enterprise value of Rs. 5,100 crores, while also securing 100% ownership of Organic India for Rs. 1,900 crores.
Capital Foods, renowned for its popular brands ‘Ching’s Secret’ and ‘Smith & Jones,’ will see Tata Consumer take operational control and hold a majority in board representation. The filing disclosed that 75% of the equity shareholding in Capital Foods will be acquired upfront, with the remaining 25% to be procured within the next three years.
Ajay Gupta, the founder and chairman of Capital Foods, will continue to contribute as a consultant.
Tata Consumer’s investor presentation highlighted that the categories in which Capital Foods operates have an estimated size of Rs 21,400 crore, and Capital Foods achieved a turnover of approximately Rs. 750–770 crores in the fiscal year 2023–24.
At the same time, Tata Consumer is set to acquire the entirety of Organic India, a well-established brand in food and beverages, herbal supplements, and traditional supplements, for Rs 1,900 crore. With a market presence spanning over 25 years and a footprint in 48 countries, Organic India is a strategic addition to Tata Consumer’s expanding portfolio.
Tata Consumer stated in its filing that the estimated turnover of Organic India for the fiscal year 2023–24 is around Rs. 360 to 370 crores. The release also highlighted the Total Addressable Market for Organic India’s product categories, stating it as Rs. 7,000 crores in India and Rs. 75,000 crores in international markets where Tata Consumer holds a robust presence.
This move, following months of negotiations, aims to broaden Tata Consumer’s product portfolio and extend its reach in fast-growing and high-margin categories. The acquisitions align with Tata Consumer’s vision to capture new market opportunities and solidify its position in the dynamic FMCG backdrop. The discussions for these acquisitions were first reported by ET in August and September of the previous year.