Tata Consumer Products (TCPL) has signed an agreement to acquire 100 percent equity shares of Capital Foods. While the acquisition of Capital Foods will be in a phased manner, TCPL will acquire 100 percent of Organic India.

TCPL will pay an enterprise value on a no cash-no debt basis of Rs 5,100 crore for 100 percent stake in Capital Foods, and for Organic India, it will pay Rs 1,900 crore. The acquisition aligns with the company's strategic intent to expand its product portfolio and its target addressable market. 

Organic India is known for its teas, infusions, herbal supplements and personal care items. Capital Foods, on the other hand, is known for instant noodles, soups and condiments under the brand names Ching's Secret and Smith & Jones. This acquisition will enable Tata Consumer Products to expand its product portfolio and further strengthen its pantry platform, and open up significant market opportunities in the fast-growing non-Indian cuisines segment, while leveraging its sales and distribution platform.

The overall size of the categories in which Capital Foods operates is estimated at Rs 21,400 crore, while the total addressable market for the categories that Organic India has a presence in is Rs 7,000 crore in India. 

Organic India has a portfolio of over 100 products in the health & wellness space, which spans premium and high-growth categories focused on sustainable living. Capital Foods has manufacturing facilities in Nasik, Kandla and Vapi.