Key Points
Tata Consumer Products Ltd (TCPL) announced on Friday that it has signed definitive agreements to fully acquire Capital Foods, owner of Ching's Secret and Smith & Jones, and Organic India, the Fabindia-backed organic teas and health products maker..
TCPL didn't say how much the Capital Foods acquisition will cost but people with knowledge of the matter told ET the maker of instant noodles and condiments had been valued at 5,100 crore..
TCPL said the takeover of Organic India will cost 1,900 crore...
"The development is mildly negative for Nestle India as Nestle was also likely one the bidders for Capital Foods and competition in noodles and cooking aids will increase once TCPL acquires Capital Foods as it can scale it up further," Nuvama Equities said in a note...
TCPL said Capital Foods has strong umbrella platform brands with a portfolio of unique products for in-home consumption in fast-growing categories such as Ching's Secret, which leads the market in desi Chinese products across categories like chutneys, blended masalas, sauces and soups..
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