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India’s Tata Consumer Products, owner of Tetley Tea, has acquired two Indian food groups: Capital Foods and Organic India. The Indian conglomerate announced it had purchased Capital Foods for INR 51 billion (approx. $614 million) and acquired Organic India for INR 19 billion (approx. $229 million). Through the deal, Tata Consumer will buy 75% of the equity shareholding of Capital Foods upfront, owner of the brands Ching’s Secret and Smith & Jones, with the remaining 25% shareholding acquired within the next three years. Ching’s Secret manufactures chutneys, blended masalas, sauces and soups, while Smith & Jones is a fast-growing brand catering to in-home cooking of Italian and other Western cuisines. This move is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market in fast growing and high margin categories. Sunil D’Souza, MD and CEO, Tata Consumer Products, said: “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.” Ajay Gupta, founder of Capital Foods, commented: “Today is a historic day for Capital Foods. To be associated with the iconic Tata Group is a dream come true for me. Just the name, ‘Tata’, instils a sense of trust and pride in every Indian. Together, Tata and Capital Foods can create a multi-national culinary brand that includes multiple food categories." Tata Consumer also announced that it had signed definitive agreements to acquire up to 100% of the issued equity share capital of Organic India, a strong BFY organic brand spanning F&B and herbal and traditional supplements. founded in 1997, Organic India supplies more than 40 markets, including US customers at Whole Foods Market and Sprouts Farmers Markets. This move is set to create a health and wellness platform for Tata Consumer. D’Souza added: “This transaction aligns well with Tata Consumer’s overall strategic objectives and presents exciting market opportunities in the rapidly growing health and wellness segment. In addition, Organic India has built very strong relationships with farmers to create a robust organic supply chain with a trusted brand and a loyal consumer base.” He continued: “Organic India’s differentiated products and robust supply chain together with Tata Consumer’s distribution strength across channels in India and specific geographies globally makes us confident of accelerating momentum in the business while improving our margin profile”.