Tata Consumer Announces Rs 3,500 Crore Rights Issue as Part of Strategic Plan

15 Jan 2024 , 02:27 PM

Tata Consumer Products Ltd (TCPL) plans to launch a Rs 3,500 crore rights offering after obtaining board permission to fund its Rs 7,000 crore acquisitions of Capital Foods and Organic India.

The business, which announced the purchases late last week, can go beyond commodities to fast-growing, high-margin, value-added food areas with the strength of its expanded portfolio.

Organic India provides the Rs 14,000 crore manufacturer of Tata Tea, Tetley, and Tata Salt with its first entry to the pharmaceutical distribution chain, he added. TCPL has also reached an agreement with Capital Foods founder Ajay Gupta to continue advising the fast-moving consumer goods (FMCG) firm. 

Capital Foods, valued at Rs 5,100 crore, owns well-known brands such as Ching’s Secret and Smith & Jones, whilst Organic India distributes organic infusions, tea, vitamins, and other health items. TCPL would pay Rs. 1900 crore for Organic India.

‘I am now positioned to venture into enhanced products within these brands. By having Sampann, Ching’s, and Smith & Jones in my diverse food brand portfolio, I can now address the full spectrum of cuisines for the Indian consumer. The addition of Organic India allows us to elevate our tea business and venture into health supplements. There is also a significant prospect to explore new, high-value categories with these brands,’ stated MD and CEO Sunil D’Souza.

For feedback and suggestions, write to us at [e-mail]