Tata Consumer to buy Capital Foods for Rs 5,100 crore in all cash deal

As per data available on Tracxn, founder of the company, Ajay Gupta, holds 9.45 percent in the company

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26 Aug, 2025 12:21

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Tata Consumer Products on January 12 said it will be buying 100 percent stake in Capital Foods, which markets its products under Ching’s Secret and Smith & Jones brands, for Rs 5,100 crore in an all cash deal.

"The Board of Directors approved the acquisition of 100 percent of the issued equity share capital of Capital Foods Private Limited. The Company, thereafter, has entered into Share Purchase Agreement (SPA) and Shareholders’ Agreement (SHA) with the existing promoters and shareholders of the target company to acquire the entire issued equity share capital in a phased manner," said Tata Consumer in an exchange filing.

The FMCG company added that 75 percent of the equity shareholding will be acquired upfront and the balance 25 percent shareholding will be acquired within the next three years.

ALSO READ: Tata Consumer hits 52-week high amid reports of acquiring Capital Foods, Organic India

Estimated turnover of Capital Foods for FY24 is approximately Rs 750 to Rs 770 crore. The same was Rs 706 crore in FY23, Rs 574 crore in FY22 and Rs 667 crore in FY21.

As per FY24 estimated sales, the company is valued at about 7 times. As per FY23 sales, the deal values the firm at 7.22 times. As of last closing price, Tata Consumer is valued at 12 times its FY23 sales and 11.5 times its FY24 (annualised) sales.

"Ching’s Secret is a market leader in Desi Chinese across its product categories - Chutneys, Blended Masalas, Sauces and Soups. Smith & Jones is a fast-growing brand catering to in-home cooking of Italian and other western cuisines," Tata Consumer said in a separate press release.

Tata Consumer said this acquisition will enable it to expand its product portfolio and further strengthen its pantry platform. The overall size of the categories in which Capital Foods operates in is estimated at Rs 21,400 crore.

“We believe this is a good strategic and financial fit. It will open up significant market opportunities in the fast-growing non-Indian cuisines segment, leveraging the sales and distribution platform that we have built. The strong brand recall of Ching’s Secret and Smith & Jones coupled with our operational strength across channels makes us extremely confident of driving topline growth and realizing cost synergies," said Sunil D’Souza, MD & CEO, Tata Consumer Products.

As per data available on Tracxn, founder of the company, Ajay Gupta, holds 9.45 percent in the company while the rest is held by private equity funds General Atlantic and Artal Asia.