Last month, Tata Consumer became the sixth Tata Group stock to cross the Rs 1 lakh crore market capitalisation.
The formal announcement is expected by early next week. TCPL will be buying 75% of Capital Foods from existing investors Invus Group, a European family office and investment arm, with a 40% stake; US private equity group General Atlantic that owns 35% valuing the company at Rs 5100 crore, the ET report said.
The Tata firm is also said to be picking a controlling stake in Organic India for a Rs 1,800 crore valuation from FabIndia. Fabindia is backed by Premji Invest and Lighthouse Capital, and owns over 40% stake in Organic India, based in Lucknow.
Ching’s Secret products include instant noodles, which will directly pit Tata Consumer against Nestle’s Maggi.
“Tata Consumer offers a long growth runway as it transforms into a larger consumer packaged goods (CPG) company with aspirations beyond F&B,” JP Morgan said.
In the September quarter, Tata Consumer reported a 3% growth in its consolidated net profit at Rs 338 crore, compared with Rs 328 crore in the year-ago period. Its revenue from operations during the reporting second quarter jumped 11% year-on-year (YoY) to Rs 3,734 crore. In the December quarter, Kotak Equities has modeled 7.4% YoY growth in consolidated revenues. Overall, the consolidated EBITDA margin is expected to increase to 14.7% (up 30/160 bps QoQ/YoY).
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