Tata Consumer Products to acquire Organic India and Capital Foods soon

Tata Consumer Products, early next week, is all set to announce the acquisition of Capital Foods and Fabindia-backed Organic India.

As per reports, TCPL will be buying 75% stakes worth Rs 3825 crore in Capital Foods, the makers of Ching’s Secret and Smith & Jones by buying out the stakes of existing investors Invus Group (40%) and General Atlantic (35%).

That being said, the company is also likely to soon buy out the remaining 25% stakes from Capital Foods’ Founder Chairman and Managing Director, Ajay Gupta, who is an advertising boss turned entrepreneur.

Similarly, the FMCG giant will also be purchasing a controlling stake worth Rs 1800 crore in valuation in Fabindia backed-Organic India which deals in premium organic teas and infusion, herbal supplements and personal care products.

With this acquisition in Capital Foods, TCPL will join the likes of Nestle, a prominent player in the branded instant noodles market with its Maggi franchise that has a dominating market share of 60% as of now.

As for Organic India, the acquisition is likely to help TCPL in widening its product categories as well as distribution opportunities in not just India but across the globe.

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