After acquiring Capital Foods and Organic India, Tata Consumer Products Limited (TCPL), a fast-moving consumer goods (FMCG) manufacturer, is prepared for further acquisitions. According to a senior company official, TCPL is actively seeking new acquisitions that bring substantial operational value to the company.
In the meantime, the company has established a goal of integrating its latest acquisitions, Capital Foods (valued at INR 5,100 crore) and Organic India (valued at INR 1,900 crore), into the business within 100 days.
Continue Exploring: Tata Consumer Products set to expand portfolio with strategic acquisitions of Capital Foods and Organic India
Ajit Krishnakumar, COO of Tata Consumer Products Ltd said, “We are in the process of integrating Capital Foods and Organic India, which is substantial and amounts to a total of INR 7,000 crore. From an operational perspective, there is no reason that we will not look for acquisitions. We remain disciplined. We have to define the criteria, which is that it should be worthwhile, and we will pursue it. We will not be running away because of the price, as long as the acquisitions meet the criteria; we have the position to continue with it.”
The Mumbai-based company revealed its acquisition of both firms on January 12th. It noted that the sectors in which these companies operate are experiencing growth rates ranging from 15 to 20 percent compared to their foundational categories. TCPL intends to consolidate the three manufacturing plants of Capital Foods into its existing manufacturing infrastructure. Previously, the company had acquired Kottaram Agro Foods, headquartered in Bengaluru.
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“We have platforms that we are interested in that include pantry and mini meals. We have also talked about proteins. We have defined our interests for several reasons which start with what brands will work, distribution strategy etc. We want to grow and will tap into opportunities. It could be a mix of inorganic and organic growth,” added Ajit Krishnakumar.
The company’s distribution network spans 3.9 million outlets across India, with direct access to 1.5 million of them.
TCPL is gearing up to establish a specialized pharmaceutical distribution network featuring Organic India’s product range, which encompasses capsules containing Tulsi, ashwagandha, and Triphala. Additionally, TCPL will market its own in-house products, such as GoFit plant proteins and Soulfull products, through pharmacy channels.
Continue Exploring: Tata Consumer Products to tap pharma channels with Organic India and expand Capital Foods into oriental cuisine space
