Tata Consumer Products Limited (TCPL) will acquire 100 per cent stake in Tata SmartFoodz Limited (TSFL) from Tata Industries Limited for Rs 395 crore. The acquisition will help Tata Consumer Products expand into value-added categories and enter the ready-to-eat segment.
Started in 2019, Tata SmartFoodz is one of the players in the ready-to-eat market, and has a state-of-the-art manufacturing facility in Sri City, Andhra Pradesh.
Operating under the brand name Tata Q, Tata SmartFoodz offers a range of products made using MATS technology, which helps retain taste, texture and nutrients. The product portfolio caters to consumers looking for tasty, convenient and wholesome on-the-go meals.
Its product offerings include pasta, noodles, biryani and combo meals.
"In India, the category is expected to grow at a significant pace, benefitting from demographic tailwinds such as urbanisation, and high disposable income nuclear families looking for convenience, nutrition and hygienic food on the go," a company statement said.
Tata Consumer will leverage its existing domestic and international distribution and focus on operational excellence to maximise value. "The technology will also enable TCPL to create a strong pipeline of value-added products in other parts of the foods business," the company added.
Tata Consumer MD and CEO Sunil D’Souza said: "Tata SmartFoodz is a good strategic fit for us given the nature of its business and it will also allow us to expand our portfolio into the ready-to-eat segment."
He said the acquisition will give Tata Consumer access to unique technology and the product portfolio synergises well with its existing distribution infrastructure both in India and internationally.
Tata SmartFoodz CEO Balark Banarjea said the acquisition will allow it to leverage Tata Consumer’s strength in modern trade and e-commerce channels in India and across the world.
Tata Consumer, which is the 2nd largest branded tea company, is a focused consumer products company, whose portfolio of products includes tea, coffee, water, RTDs, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks, and mini-meals.
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