Tata Consumer Products enters into ‘Ready to Eat’ category
Tata Consumer Products Limited (TCPL) has signed definitive agreements to acquire 100% equity shares of Tata SmartFoodz Limited (TSFL) from Tata Industries Limited, for a cash consideration of Rs 395 crore. This move is consistent with TCPL’s strategic intent to expand into value added categories.
TSFL commenced operations in 2019 and has a state-of-the-art manufacturing facility in Sri City, Andhra Pradesh.
TSFL, under the brand name Tata Q, offers a range of innovative and differentiated products manufactured using MATS technology in India. This unique technology helps retain taste, texture and nutrients within an ambient supply chain. The product portfolio caters to consumers looking for tasty, convenient and wholesome on-the-go meals. Its product offerings currently include pasta, noodles, biryani and combo meals.
The acquisition will enable TCPL to expand its product portfolio and enter the RTE segment. In India, the category is expected to grow at a significant pace benefitting from demographic tailwinds such as urbanization, and high disposable income nuclear families looking for convenience, nutrition and hygienic food on the go. The category is already large and growing strongly in the international markets that TCPL already operates in. Tata Consumer Products will leverage its existing domestic and International distribution and focus on operational excellence to maximize value. The technology will also enable TCPL to create a strong pipeline of value-added products in other parts of the foods business.