According to sources, Tata Consumer Products Ltd (TCPL) is about to announce two major acquisitions: Capital Foods Pvt Ltd, the maker of condiments, food products, and ingredients under the Ching's Secret and Smith & Jones brands, and Organic India, the Fabindia-backed organic teas and health products maker.
The acquisitions will enable the company to gain access to products with a broader flavour profile, enter new markets, and broaden its portfolio with organic items that will appeal to consumers looking for healthy alternatives.
The official announcement is scheduled for early next week.
TCPL will acquire 75% of Capital Foods from existing investors Invus Group, a European family office and investment arm, which owns 40%, and General Atlantic, a US private equity group, which owns 35%, valuing the company at Rs 5100 crore. This would value the stake at Rs 3,825 crore. Invus is a European family office that also serves as an investment arm. Ajay Gupta, the founder chairman of Capital Foods and a former advertising executive turned food entrepreneur, will retain his 25% stake for the time being, but Tatas will buy him out in the future, allowing him to unlock additional value.
TCPL will also be buying a controlling stake in Organic India for a Rs 1800 crore valuation from Fab India. Fabindia is backed by Premji Invest and Lighthouse Capital, and owns over 40% stake in Organic India, based in Lucknow.
