Tata Consumer Products recently announced its move to acquire up to 100% stake in Organic India for Rs 1,900 crore. Organic India is a prominent brand in the organic Food & Beverages and Herbal & Traditional Supplements sectors.
Alongside, the company also announced the acquisition of Capital Foods, a company known for ‘Ching’s Secret’ and ‘Smith & Jones’.
Tata said the acquisition aligns with its strategy to broaden its product range and target market in high-growth and high-margin categories. Organic India, with a 25-year history, operates in over 48 countries, primarily in India and the USA.
What does Organic India do?
Organic India is renowned for its sustainable living-focused products, including Herbal Supplements, Tea & Infusions, and Organic Packaged Foods. The brand has cultivated strong relationships with over 12,000 farmers and boasts comprehensive organic certifications.
Notably, Organic India has been a pioneer in commercial tulsi cultivation and introducing high-value medicinal crops in India. With a portfolio of over 100 Health & Wellness products, The company addresses a Total Addressable Market (TAM) of Rs 7,000 crore in India and Rs 75,000 crore internationally.
How will it benefit Tata Consumer Products?
Tata, in a release said, the acquisition is expected to bring significant synergy benefits in distribution, logistics, and overheads. It aims to drive portfolio premiumization while unlocking new channels and markets.
Sunil D’Souza, MD & CEO, Tata Consumer Products said, "Organic India has built very strong relationships with farmers to create a robust organic supply chain with a trusted brand and a loyal consumer base. Organic India’s differentiated products and robust supply chain together with Tata Consumer’s distribution strength across channels in India and specific geographies globally makes us confident of accelerating momentum in the business while improving our margin profile.”
Kotak Investment Banking, Trilegal, and Sidley Austin served as exclusive financial and legal advisors to Tata Consumer Products Limited (TCPL) for this transaction.