
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.