Tata Consumer Products has completed the integration of Capital Foods, maker of Ching’s Secret and Smith & Jones food ingredients, within just 60 days of acquisition.
The company said in an exchange filing that both back end and front end integration has been completed. Tata Consumer is leveraging their GTM (Go-to-market) strategy to deliver growth across channels while delivering on cost synergies.
In January, TCPL had finalized deals to acquire full ownership of Capital Foods, known for brands like Ching’s Secret and Smith & Jones, as well as Organic India, a company specializing in organic teas and health foods. The acquisition costs Rs 5,100 crore for Capital Foods and Rs 1,900 crore for Organic India, with potential additional payments based on the companies' financial performance.
TCPL aimed to integrate these acquisitions within the next three to four months, utilizing its distribution network to expand the reach of these brands domestically and internationally.
TCPL unites the food and beverage interests of the Tata Group under one umbrella. The company’s portfolio includes tea, coffee, water, beverages, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals.
“Our recently announced acquisitions- Capital Foods and Organic India will be significant value creators for the company, enabling expansion into high growth, high margin categories. The front end and back-end integration for Capital Foods was completed within 60 days of transaction close. The transaction for Organic India closed on 16th April and we will focus on fast tracking integration of the business to unlock value.” said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products in a statement.
On April 23, the company reported a net profit of Rs 217 crore for the fiscal fourth quarter, a fall of 19 percent from the year-ago period. Revenue increased 8.5 percent to Rs 3,927 crore in the three months ended March 31, Tata Consumer said in an exchange filing.
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