Tata Consumer Products to snap up Organic India to expand health and wellness portfolio

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In a significant move to expand its portfolio in the fast-growing health and wellness sector, Tata Consumer Products has announced the definitive acquisition of up to 100% of the issued equity share capital of Organic India. This acquisition is a strategic step for Tata Consumer, a major player in the Food & Beverage and Health & Wellness industries, as it aims to broaden its product range and target addressable market in high-margin categories.

Established over 25 years ago, Organic India has carved a niche in the ‘better for you’ organic brand category. With a wide geographical footprint covering more than 48 countries, predominantly in India and the USA, Organic India offers a diverse range of products. These include Herbal Supplements, Tea & Infusions, and Organic Packaged Foods, all focused on sustainable living and wellness. The brand is renowned for its strong relationships with over 12,000 farmers and boasts unparalleled organic certifications across its supply chain.

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Organic India has been a pioneer in the commercial cultivation of tulsi and the introduction of high-value medicinal crops in India, offering a portfolio of over 100 products in the Health & Wellness space. The Total Addressable Market (TAM) for Organic India’s product categories is estimated at Rs 7,000 crores in India and a substantial Rs 75,000 crores in international markets, where Tata Consumer already has a strong presence.

Tata Consumer to enhance portfolio with 100% acquisition of organic brand Organic India

Tata Consumer to enhance portfolio with 100% acquisition of organic brand Organic India

The synergy between Tata Consumer Products and Organic India is expected to bring significant benefits in terms of distribution, logistics, and overheads. This partnership is poised to drive portfolio premiumization and unlock new markets and channels. Structural growth drivers for this portfolio include the increasing demand for health and wellness products, growing consumer awareness around wellness, and changing consumer preferences.

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Sunil D’Souza, MD & CEO of Tata Consumer Products, expressed excitement about the acquisition, stating, “This transaction aligns well with Tata Consumer’s overall strategic objectives and presents exciting market opportunities in the rapidly growing Health & Wellness segment.”

On the other side, William Bissell, Managing Director of Fabindia, highlighted the alignment of values between Tata and Organic India, underscoring the commitment to fairness, preservation of civilizational traditions, and social uplift.

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The acquisition was facilitated by Kotak Investment Banking, Trilegal, and Sidley Austin, serving as TCPL’s exclusive financial and legal advisors.

This move by Tata Consumer Products is expected to create a significant impact in the Health & Wellness space, bringing together the strengths of both companies to build a robust platform for growth and innovation in this sector.

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