Tata Consumer Products Limited (TCPL) is set to acquire Organic India, backed by Fabindia, and Capital Foods, renowned for its brand Ching’s Secret, according to sources cited by ET. The formal announcement is anticipated next week.
Under the deal, TCPL will secure a controlling stake in Organic India from Fabindia at a valuation of INR 1,800 crore. Simultaneously, it will purchase a 75% stake in Capital Foods from Invus Group and General Atlantic at a valuation of INR 5,100 crore. The remaining 25% stake will initially be retained by former Capital Foods chairman Ajay Gupta, with TCPL planning to acquire it in the future.
Organic India is recognized for its teas, herbal supplements, infusions, and personal care items, while Capital Foods is known for its Ching’s Secret and Smith & Jones brands of instant noodles, soups, and condiments.
TCPL, currently dealing in teas, salt, and water bottles with a Starbucks Coffee joint venture in India, reportedly aims to directly compete with Nestle’s Maggi, the leader in India’s instant noodles market with a 60% share. Other players in the segment include Wai Wai, Top Ramen, and Patanjali.
TCPL’s recent statement by CEO Sunil D’Souza highlighted the company’s pursuit of acquiring a globally recognized brand, aligning with the anticipated global reach of both Capital Foods and Organic India.
The acquisition of Organic India is expected to broaden TCPL’s product portfolio, signaling strategic expansion in diverse market segments.
