Tata Consumer Products has agreed to acquire 100% of Capital Foods, enhancing its portfolio in fast-growing food categories including Desi Chinese and Italian cuisines.

Information on the Target

Tata Consumer Products has entered into definitive agreements to acquire 100% equity shares of Capital Foods, known for its popular brands ‘Ching’s Secret’ and ‘Smith & Jones’. The transaction will occur in a phased manner, with 75% of the equity acquired upfront and the remaining 25% within three years. Capital Foods is recognized for its robust portfolio that caters to the growing demand for convenient in-home cooking options, particularly in Desi Chinese and Western cuisines.

Ching’s Secret stands as a market leader in various Desi Chinese categories, including chutneys, blended masalas, sauces, and soups. Meanwhile, Smith & Jones focuses on Italian and other Western culinary offerings. Altogether, Capital Foods enjoys leading positions in five significant product categories, which reinforces its strategic worth to Tata Consumer Products.

Industry Overview in India

The food and beverage industry in India is experiencing remarkable growth, reflective of the country's changing consumption patterns and rising disposable incomes. With a market size estimated at Rs 21,400 crores for the categories in which Capi