Tata Consumer Leads Race for Majority Stake in Organic India, Talks in Advanced Stage

19 Dec 2023 , 03:03 PM

Tata Consumer Products emerges as the frontrunner for a majority stake in Organic India, surpassing other suitors like ITC. Talks between Tata Consumer and Organic India are in advanced stages, with a focus on health and organic products aligning with Tata’s investment strategy.

Fabindia seeks to unlock value as Organic India is considered non-core to its business, and Tata’s distribution strength could scale up the brand.

Discussions between Tata Consumer, Organic India, and investors are in the final stages, with Organic India known for its herbal and green teas.

Fab India holds a 64% stake in Organic India, with founder promoters holding 17%, Premji Invest 15%, and the remaining owned by employees and the ESPS trust.

The ongoing deal talks may or may not result in a final transaction, and deal valuations are undisclosed.

Fabindia confirms conversations with potential investors due to shareholders seeking an exit, but no concrete developments at the moment.

Tata Consumer Products and Organic India remain silent on market speculation, with no response to queries at the time of publishing.

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