Home / Business and Economy / Tata Consumer Buys Capital Foods Stake for Rs 5,100 Crore
Tata Consumer Buys Capital Foods Stake for Rs 5,100 Crore
1 Sep
Summary
- Tata Consumer Products to acquire 75% of Capital Foods for Rs 5,100 crore.
- Acquisition strengthens Tata Consumer's position in the branded food segment.
- Deal is subject to regulatory approvals and customary closing conditions.
Tata Consumer Products Ltd. is set to acquire a 75% controlling stake in Capital Foods Pvt. for Rs 5,100 crore, as announced on Tuesday. This strategic move is designed to significantly enhance TCPL's footprint within the branded food sector.
The acquisition aligns with TCPL's objective to broaden its food and beverage offerings and solidify its standing in dynamic consumer markets. The transaction awaits necessary regulatory approvals and other standard closing conditions.
Further extending its investment, TCPL intends to purchase the remaining 25% of Capital Foods within three years post-completion of the initial stake acquisition. This phased approach facilitates a gradual increase in ownership.
Capital Foods brings an established presence and a complementary distribution network to TCPL's existing consumer brands in India's packaged food market. This integration is anticipated to broaden TCPL's market reach across India.
This development follows TCPL's robust financial performance in Q1 FY27, where consolidated net profit surged by 27.8% year-on-year to Rs 427 crore, with revenue from operations climbing 11.9% to Rs 5,349 crore.
