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Tata Consumer Products has agreed to acquire India's Kottaram Agro Foods (KAF), owner of the Soulfull brand.

The acquisition will allow Tata Consumer Products to expand its product portfolio and participate in additional consumption occasions. The Economic Times has reported that the deal was made for Rs 155.8 crore ($21.4 million approx.).

KAF’s Soulfull brand offers a portfolio of millet-based products for kids and adults, including cereals, muesli, snacks and plant-based protein drinks.

Tata Consumer Products claims that Soulfull – which was launched in 2013 – is one of the fastest growing brands in India’s ‘better-for-you’ packaged food market.

“This acquisition is a good strategic fit for Tata Consumer Products,” said Sunil D’Souza, managing director and CEO, Tata Consumer Products.

“It opens to us significant new market opportunities in the fast-growing mini meals segments and helps us partner a passionate and ambitious team of entrepreneurs who will remain and become a part of Tata Consumer Products' team. Soulfull synergises well with our existing product portfolio, our distribution network as well as the supply chain.”

Tata Consumer Products also claims that the Tata name would further enhance the Soulfull brand’s credentials with consumers.

Prashant Parameswaran, managing director and CEO, Kottaram Agro Foods, added: “We are extremely proud to associate with Tata Consumer Products which provides us a great platform for furthering Soulfull’s purpose of making ancient millets relevant for the 21st century. Tata Soulfull will enhance the brand’s credibility and make health more accessible and mainstream while retaining its vibrancy."

Parameswaran continued: “This partnership would enable us to not just scale our existing business but also enter new categories in the fast-growing health and wellness market.”

The transaction is expected to be completed in the fourth quarter of FY 2021.