The Swiss company Nestle SA is among the final bidders competing to acquire India’s Capital Foods as it seeks to boost its presence in the fast-growing economy of India. The world’s biggest food group has been discussing terms of a potential deal for Mumbai-based Capital Foods.
Any transaction would likely value the Indian firm at more than $1 billion, according to the people. Capital Foods makes the Ching’s Secret brand of spicy noodles and fusion chutneys infused with so-called “desi Chinese” flavors.
It also sells Smith & Jones cooking pastes and masala mixes. While talks on a potential deal have advanced, several other suitors have also expressed interest in buying Capital Foods, and there’s no certainty Nestle will emerge as the winner.
Shares of Nestlé’s listed Indian unit have gained 10% in Mumbai trading over the past 12 months, giving it a market value of about $22.3 billion. The firm started its first manufacturing facility in India in 1961 and sells everything from yogurt to cereals in the country. Investors in Capital Foods include General Atlantic, which bought a stake in the company in 2018.