This acquisition will provide significant synergy benefits in distribution, logistics and overheads apart from driving portfolio premiumisation and unlocking additional channels and new markets
Tata Consumer Products announced that it has signed definitive agreements to acquire up to 100 per cent of the issued equity share capital of Organic India, one of the strongest ‘better for you’ organic brands spanning Food & Beverages and Herbal & Traditional Supplements. This move is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market in fast-growing/high-margin categories. This acquisition will create a Health & Wellness platform for Tata Consumer Products.
Organic India is a 25+ years established brand with a geographical footprint covering over 48 countries, substantially from India and the USA. Its product portfolio spans premium and high-growth categories focused on sustainable living – Herbal Supplements, Tea & Infusions and Organic Packaged Foods. Organic India has strong, long-standing relationships with 12,000+ farmers and unparalleled end-to-end organic certifications across the supply chain. It pioneered commercial cultivation of tulsi and introduced high-value medicinal crops for farming in India. It has a portfolio of over 100 products in the Health & Wellness space.
The Total Addressable Market for the categories that Organic India is present in is Rs 7,000 crores in India and Rs 75,000 crores in international markets where Tata Consumer has a strong presence. This acquisition will provide significant synergy benefits in distribution, logistics and overheads apart from driving portfolio premiumisation and unlocking additional channels and new markets. Structural growth drivers for this portfolio include increasing demand for Health & Wellness products, growing consumer awareness around wellness and changing consumer preferences.