Tata Group Goes on $1 Billion Shopping Spree, Acquires Ching’s Secret and Organic India

Ajit Kushwaha

Tata Consumer Products Limited (TCPL) has announced two major acquisition deals worth nearly Rs 7,000 crore ($1 billion) to expand its product portfolio into new high-growth categories.

TCPL has signed a definitive agreement to acquire Capital Foods, the owner of popular packaged food brands Ching’s Secret and Smith & Jones, for Rs 5,100 crore ($680 million). The all-cash deal will be completed in a phased manner, with TCPL acquiring a 75% stake by March 2024 and the remaining 25% over the next 3 years.

Capital Foods manufactures and sells packaged foods and spices like chutneys, sauces, seasonings, noodles, and soups. Its flagship brands, Ching’s Secret and Smith & Jones, enjoy leading market positions in their categories and have strong growth potential.

The acquisition provides Tata with entry into the fast-growing Rs 5,000 crore Indian packaged food market. It is in line with the company’s strategy to expand its play in the Food & Beverages sector by acquiring brands that have scale and potential for growth.

Tata Group Enters Wellness Segment, Picks Up Organic India for $250 Million

In another major deal announced concurrently, TCPL will purchase a 100% stake in organic foods and supplements company, Organic India, for Rs 1,900 crore ($250 million). The transaction, scheduled to close over the next 3 months, will provide Tata Consumer access to the attractive health and wellness segment.

Founded in 1997, Organic India manufactures organic products like health supplements, teas, coffee, breakfast cereals, spices, and other grocery items. Its brand focuses on sustainable living and using ayurvedic principles in sourcing botanical ingredients.

With this acquisition, Tata strengthens its play in emerging consumer health and wellness needs. It also provides global expansion opportunities for Organic India’s products. TCPL aims to build Organic India into a leading health and wellness brand globally.

Transactions Align with Tata’s Transformation into FMCG Leader

Speaking on the deals, TCPL Managing Director Sunil D’Souza said the acquisitions serve the company’s strategic intent of entering new categories with growth potential. “This helps us expand our play into fast-growing consumer spaces,” he added.

The transactions are aligned with Tata’s aggressive transformation from a traditional tea company into an FMCG leader. Over the past few years, Tata Consumer has made several acquisitions, including Tetley, Eight O’Clock Coffee, Soulfull, and Nourishco Beverages (maker of Himalayan water) to diversify its product portfolio.

Analysts believe the recent deals strengthen Tata’s presence across food and beverages. With popular brands like Tata Salt, Tata Tea, Tetley, Ching’s Secret and Organic India in its bag, Tata Consumer seems poised to challenge FMCG heavyweights like HUL, Nestle, and ITC in the Indian consumer market.

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By Ajit Kushwaha Writer
Ajit Kushwaha is a stock market investor and business owner of a chips manufacturing company in Hazaribagh, Jharkhand. He holds a Bsc. from Vinobha Bhave University and leverages over 5 years of share market experience in managing investments and his snack food business.
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