Tata Consumer Ltd. has revealed its ambitious acquisition plans, targeting Capital Foods Pvt., the proprietor of renowned brands such as Ching’s Secret and Smith & Jones. The Tata Group company solidified its commitment through a share purchase agreement and shareholders’ agreement, outlining an all-cash deal structured in phases.
This strategic acquisition, valued at Rs 5,100 crore, reflects Tata Consumer Ltd.’s strategic vision to fortify its presence and offerings in the dynamic consumer goods sector. The move signifies Tata Group’s dedication to expanding its portfolio and market share, signaling a potential shift in the industry landscape.
Ajay Gupta, the visionary founder of Capital Foods Pvt., played a pivotal role in establishing household-favorite brands. The acquisition is poised to unlock substantial synergies, harnessing the combined strengths of both entities in the competitive consumer goods market.
As per the exchange filing on Friday, Tata Consumer Ltd. is set to acquire 75% stake initially, with the remaining 25% stake to be procured over three years following board approval. This acquisition aligns with the company’s strategic intent to venture into new high-growth, attractive-margin categories within the food and beverage space.
According to the deal terms, the acquisition of 75% equity shareholding is expected to conclude on or before March 31, 2024. The remaining 25% shareholding will be acquired within the stipulated three-year period. Capital Foods specializes in packaged food and condiments, primarily producing and selling chutney, masala, sauces, noodles, and soups under the well-known trademarks Ching’s Secret and Smith & Jones.
