Tata Consumer Products acquires Organic India for Rs. 1,900 crore
Category: Business News, Posted on: 16/01/2024 , Posted By: Ishika Agarwal
Visitor Count:2595



Recently, Tata Consumer Products stated that it would pay Rs 1,900 crore to acquire a 100% share in Organic India. In the markets for organic food and beverages as well as herbal and traditional supplements, Organic India is a well-known brand. Alongside, the firm also announced the acquisition of Capital Foods, a company known for ‘Ching’s Secret’ and ‘Smith & Jones’. According to Tata, the acquisition is consistent with its plan to increase the size of its target market and product line in high-margin, high-growth areas. With a quarter of a century of experience, Organic India works in more than 48 countries, mostly in the USA and India. Organic India is well-known for its items that promote sustainable living, such as organic packaged foods, tea & infusions, and herbal supplements. The brand boasts extensive organic certifications and has built solid partnerships with over 12,000 farmers. Notably, Organic India was the first in India to introduce high-value medicinal crops and to cultivate tulsi for commercial purposes. The company caters to a Total Addressable Market (TAM) of Rs 7,000 crore in India and Rs 75,000 crore globally, offering a portfolio of more than 100 goods related to health and wellness. According to a press statement from Tata, there would be major synergistic gains in distribution, logistics, and overheads from the transaction. It seeks to open up new markets and channels while promoting portfolio premiumization. "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," stated Sunil D'Souza, MD & CEO of Tata Consumer Products. We are sure that we will accelerate commercial momentum while enhancing our profit profile thanks to Organic India's unique goods and strong supply chain, as well as Tata Consumer's extensive distribution across channels in India and select worldwide locations. For this deal, Tata Consumer Products Limited (TCPL) had exclusive financial and legal advice from Kotak Investment Banking, Trilegal, and Sidley Austin.

Organic India is a multi-national company founded in 1997 by couple Bharat Mitra and Bhavani Lev (née Holly Bronfman), in Lucknow, India, that produces halal certified organic herbal and Ayurvedic health products.


Add a Comment

Name:
Your Comment:
View Comments ()

 
     
170249 Times Visited