The acquisition of Capital Foods and Organic India marks a transformative chapter for Tata Consumer Products Ltd.
In a significant move, Tata Consumer Products Ltd (TCPL) announced the acquisition of 100 per cent equity shares of Capital Foods, the owner of popular brands such as Chings Secret and Smith & Jones. This strategic acquisition marks a major step forward for TCPL as it aims to establish a robust health and wellness platform and expand its product portfolio in the fast-growing organic food and beverage segment.
TCPL will acquire a 100 per cent stake in Capital Foods on an Enterprise value of Rs 5,100 crore in a phased manner. The initial phase will involve acquiring a 75 per cent shareholding of the target company, with the remaining 25 per cent to be acquired within the next three years. Additionally, TCPL will acquire a 100 per cent stake in Organic India, a leading player in the organic food and beverage industry, in an all-cash deal valued at Rs 1,900 crores. This acquisition includes an additional earnout for the shareholders linked to the audited financials of the company for the financial year 2025-26.
The acquisition of Capital Foods and Organic India aligns perfectly with TCPL’s strategic intent to expand its product portfolio and target addressable market in high-growth and high-margin categories. Capital Foods’ strong presence in the condiments, spices, and ready-to-cook segments will complement TCPL’s existing offerings, while Organic India’s expertise in organic food and beverages will enable the creation of a dedicated health and wellness platform.
TCPL expects significant synergy benefits from the acquisition of Capital Foods. The combined entity will leverage existing distribution networks, logistics infrastructure, export channels, and overhead resources, resulting in improved operational efficiencies and cost savings. The overall size of the categories in which Capital Foods operates is estimated at a substantial Rs 21,400 crores, presenting immense growth potential for TCPL.
The acquisition of Capital Foods and Organic India marks a transformative chapter for Tata Consumer Products Ltd. By integrating these renowned brands into its portfolio, TCPL aims to strengthen its position in the fast-moving consumer goods (FMCG) industry and cater to the growing demand for health-conscious and organic products. This strategic move aligns with TCPL’s vision to become a leading player in the health and wellness segment, offering consumers a diverse range of high-quality products.
