TCPL shares hit a 52-week high post-major acquisitions, including Capital Foods and Organic India, signaling investor confidence in the market
Tata Consumer Products Ltd (TCPL) is reportedly preparing to unveil two significant acquisitions, namely Capital Foods Pvt Ltd, renowned for producing condiments, food items, and ingredients sold under the Ching's Secret and Smith & Jones brands, along with Organic India brand, as per a report by the Economic Times.
These acquisitions will enable the company to expand its product range with a diverse taste profile, enter new markets, and enhance its portfolio with organic products catering to health-conscious consumers. The official announcement is anticipated in the early part of next week.
TCPL is set to acquire 75 per cent of Capital Foods from existing investors, including the European family office Invus Group (40 per cent stake) and US private equity group General Atlantic (35 per cent stake), valuing the company at Rs 5,100 crore. As per the report, founder Ajay Gupta will retain the 25 per cent stake initially, with the Tatas planning to buy him out in the future.
Meanwhile, the company will also be acquiring a majority stake in Organic India from Fab India at a valuation of Rs 1,800 crore. Fabindia, supported by Premji Invest and Lighthouse Capital, holds over 40 per cent ownership in Organic India.
With these acquisitions, TCPL will now directly compete with Nestle's Maggi, which holds a 60 per cent share in the Rs 5,000 crore branded instant noodles market. Competitors in this category include Top Ramen, Wai Wai, and Patanjali.
Following the development, TCPL's shares witnessed a significant surge, reaching its 52-week high. As of 10:02 am, the shares of the FMCG firm were trading at Rs 1,136 price level, reflecting a nearly 3 per cent increase on NSE.