Tata Consumer Products to acquire Ching’s Secret and Smith & Jones owner Capital Foods
In a major development in the food and beverage industry, Tata Consumer Products has announced the acquisition of 100% equity shares of Capital Foods, the owner of popular brands ‘Ching’s Secret’ and ‘Smith & Jones’, in a phased manner. This move signifies Tata Consumer’s ambitious expansion into fast-growing and high-margin categories.
The acquisition deal, involving an upfront purchase of 75% equity shareholding and the balance 25% to be acquired within the next three years, is a strategic decision aligning with Tata Consumer’s growth objectives. Capital Foods, a company with strong umbrella platform brands, offers a unique portfolio of products for in-home consumption in rapidly growing categories. Ching’s Secret, a market leader in Desi Chinese, and Smith & Jones, catering to in-home cooking of Italian and other western cuisines, hold prominent positions in their respective markets.
This acquisition is more than just a business expansion for Tata Consumer Products. It represents a significant step in expanding its product portfolio and strengthening its pantry platform. The synergy benefits with existing Tata Consumer businesses in distribution, logistics, exports, and overheads are substantial. The overall market size of the categories where Capital Foods operates is estimated at Rs 21,400 crores, indicating a massive potential for growth and market penetration.
Tata Consumer Products to Boost Presence in Fast-Growing Food Categories with Capital Foods Acquisition
Sunil D’Souza, MD & CEO of Tata Consumer Products, commented on the acquisition: “We are excited to welcome Capital Foods into Tata Consumer Products. This is a good strategic and financial fit, opening up significant market opportunities in the fast-growing non-Indian cuisines segment.”
The sentiment was echoed by Ajay Gupta, Founder of Capital Foods, who described the day as historic for his company. “To be associated with the iconic Tata Group is a dream come true for me,” he said, highlighting the potential for creating a multinational culinary brand with Tata’s global presence.
This acquisition is not just about adding popular brands to Tata’s portfolio but is also seen as a strategic move to tap into the evolving consumer preferences and the increasing need for convenience in in-home cooking. With this, Tata Consumer Products is set to redefine the food industry landscape, bringing global cuisines to Indian kitchens and beyond.