Tata Consumer Products Limited (TCPL) to acquire ready to eat Tata Smartfoodz businessTATACONSUM - 794 Change: 9.15 (1.17 %)
News: Tata Consumer Products (TCPL) to acquire 100% stake in Tata Smartfoodz (TSFL) for Rs.395 crore in an all cash deal. The move will help TCPL to enter the ready to eat (RTE) food category & is consistent with its strategic intent to expand into value-added categories. TSFL is the second largest player in the RTE market & offers a range of differentiated products under Tata Q brand. The move will also help TSFL to leverage TCPL's strength in modern trade & e-com channels in India & also its global presence to target key international markets for RTE exports.
Views: We believe the move will help TCPL further its footprint in the FMCG category by expanding its product portfolio & is another step towards its strategy of better reorganizing the business. The RTE market is fast growing & has great prospects going forward, considering the changing lifestyle & food habits. We believe both the businesses will be able to leverage each other's strength & would complement each other in the long run.