According to informed executives, Tata Consumer Products and ITC Foods have begun discussions regarding the acquisition of a substantial share in Organic India, a company supported by Fabindia and known for its organic teas and health products. The talks suggest that Tata Consumer or ITC may consider purchasing Fabindia’s existing stake in Organic India, or they might explore the possibility of acquiring a new stake in the company.
“After its buy-out talks with mineral water maker Bisleri fell through earlier this year, Tata Consumer has been actively scouting for acquisitions in the foods and beverages space, specially in the health and wellness category,” one of the executives said.
Specific information regarding the negotiations and the potential valuation of the Lucknow-based manufacturer, known for producing an extensive selection of premium organic teas and food supplements, remains undisclosed at this time.
Organic India is supported by Premji Invest and Lighthouse Capital, and Fabindia holds a significant ownership of over 40% in the company.
The spokespersons of Tata Consumer Products and ITC stated that they do not comment on market speculation when queried about the potential acquisition of Organic India. Furthermore, despite sending an email seeking comment, there was no response from Fabindia’s spokesperson until the time of press.
According to the mentioned executives, not only Tata Consumer Products and ITC but also several other packaged consumer goods companies are actively pursuing Organic India.
As per the ‘Indian Organic Sector Vision 2025’ report published by the commerce ministry, the organic and wellness products industry has witnessed substantial growth, particularly in high-double digits following the Covid-19 pandemic. The report predicts that the sector is expected to reach INR 75,000 crore by the year 2025.
The market is projected to experience a significant annual growth rate of approximately 16-18% until the year 2026-27.