Tata Consumer acquires Capital Foods, Organic India
₹5,100 crore for 100% stake in Capital Foods. While 75% of the equity shareholding will be acquired upfront, the remaining 25% will be acquired within the next three years, TCPL said in a filing to the exchanges on Friday evening. For a 100% stake in Organic India, TCPL will pay ₹1,900 crore, along with an additional earnout for the shareholders linked to FY26 audited financials of the company.
The estimated turnover of Organic India for FY24 is ₹360 - 370 crore, up from ₹324.4 crore in FY23. The signing of the share purchase agreement with Capital Foods has ended months of speculation over the latter’s ownership that saw rivals such as Nestle and ITC bid aggressively. In May last year, Mint reported that food giants Nestle India and ITC were in the fray to acquire Capital Foods.
The acquisition is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market. Capital Foods has strong umbrella platform brands with a portfolio of unique products for in-home consumption in fast-growing categories. In FY23, Capital Foods reported revenue from operations of ₹705.5 crore.
The estimated turnover of Capital Foods for FY24 is ₹750 to 770 crore. Ching’s Secret is a market leader in Desi Chinese across its product categories - chutneys, blended masalas, sauces and soups. Smith & Jones is a fast-growing brand catering to in-home cooking of Italian and other Western cuisines.
“Overall, Capital Foods has number one or number two positions in five large categories. This acquisition will enable Tata Consumer Products to expand its product portfolio and further strengthen its pantry platform. There are significant synergy benefits with the existing businesses of Tata Consumer Products
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