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.
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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.
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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.
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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.
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The founder of the company holds 9.45 percent in the company while the rest is held by private equity funds General Atlantic and Artal Asia. Ajay Gupta is the founder of the company.
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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.
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