Tata Consumer Products Ltd (TCPL) on Friday (January 12) said it will acquire a 100% stake in Organic India in an all-cash deal valued at ₹ 1,900 crore.
"Tata Consumer Products today announced that it has signed definitive agreements to acquire up to 100% of the issued equity share capital of Organic India, one of the strongest ‘better for you’ organic brands spanning Food & Beverages and Herbal & Traditional Supplements," the company in a regulatory filing at exchanges said.
The Tata Group company said will acquire Organic India in an all-cash transaction, with an added earnout for shareholders tied to the company's audited financials for the fiscal year 2025-26.
This acquisition aligns seamlessly with Tata Consumer's strategic vision of expanding its product offerings and tapping into fast-growing, high-margin categories.
Organic India, with a 25+ years legacy, stands out as a robust brand spanning Food & Beverages and Herbal & Traditional Supplements. The move is anticipated to create a comprehensive Health & Wellness platform within Tata Consumer Products.
Organic India boasts a significant global presence, covering over 48 countries, with a substantial footprint in India and the USA. The brand's product portfolio encompasses premium and high-growth categories centered around sustainable living, including Herbal Supplements, Tea & Infusions, and Organic Packaged Foods.
With strong relationships with over 12,000 farmers and comprehensive organic certifications across the supply chain, Organic India has been a pioneer in promoting commercial cultivation of tulsi and introducing high-value medicinal crops in India.
The total addressable market for the categories Organic India operates in is estimated at ₹7,000 crore in India and ₹75,000 crore in international markets, where Tata Consumer has a robust presence.
The acquisition is expected to unlock significant synergies in distribution, logistics, and overheads, while also driving portfolio premiumization and opening up new channels and markets for Tata Consumer.
The structural growth drivers for this newly acquired portfolio include the rising demand for Health & Wellness products, increasing consumer awareness about wellness, and evolving consumer preferences.
Shares of Tata Consumer Products Ltd ended at ₹1,158.70, up by ₹39.00, or 3.48% on the BSE.
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