The Tata name is part of most of Tata Consumer’s brands, except Himalayan, which was acquired more than 15 years ago. D’Souza said adding the Tata name required a careful evaluation process.
Sunil D’Souza, managing director and CEO of Tata Consumer, said in an analysts call on Wednesday that there are no plans to rename the Ching’s Secret, Smith & Jones and Organic India brands. . D’Souza was responding to investors’ questions about the acquisition of Capital Foods and Organic India, announced by Tata Consumer on Friday.
Manufacturer Tata Tea and Tata Salt will spend Rs 7,000 crore on these acquisitions, which will help them enter high-growth regions. “We buy these brands for what they are. We don’t buy them to disassemble them. If we think there is value in adding the Tata name to these brands then we will do it later,” D’Souza said during the investor call.
The Tata name is part of most of Tata Consumer’s brands, except Himalayan, which was acquired more than 15 years ago.
D’Souza said adding the Tata name required a careful evaluation process. “We acquired the Soulfull brand in 2021 from Kottaram Agro Foods (based in Bengaluru). We have added the Tata name to the Soulfull brand. This has helped the brand expand into the breakfast cereal and snack categories,” he told investors. Soulfull is a millet-based brand and has seen many expansion steps since it was acquired by Tata Consumer.
The company also owns Tata Sampann, which sells branded products, masalas, dry fruits, nuts, etc. and features NourishCo’s healthy drinks portfolio, alongside its core tea, coffee and salt business.
D’Souza said Tata Consumer, which had consolidated revenue in FY23 of Rs 13,783 crore, is looking to move into a large FMCG business, using both organic and inorganic for growth. “We will operate in food and beverage first, while looking at value-creating inorganic opportunities that give us access to rapidly growing categories,” he said.
The company is exploring several financing options for its two latest acquisitions, providing exposure to categories such as instant noodles, sauces and pastes as well as organic tea and care products. health.
While speaking to FE on Sunday, D’Souza had said that the company has Rs 3,000 crore of liquidity on its books, which will be used for transactions. The balance of Rs 4,000 crore will be raised through a combination of short-term debt and rights issue. The proposed size of the rights issue has been pegged at Rs 3,500 crore, although D’Souza said the Tata board will finally approve the fund-raising plan at its meeting on Friday (January 19).
“The Capital Foods transaction will be completed in two weeks. Meanwhile, Organic India will take about 45-60 days to close,” D’Souza told FE.
In terms of integration, Capital Foods and Organic India will strategically integrate into platforms built by Tata Consumer, he said. This includes breakfast and small meals for Capital Foods’ instant noodle and soup portfolio; an inventory of Smith & Jones sauces and pastes as well as premium teas for organic Indian teas and infusions.
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