Updated January 13th, 2024 at 10:14 IST
Tata Consumer Products considers debt and equity fundraising amid strategic acquisitions
Tata Consumer Products has signed definitive agreements to acquire up to 100% of Organic India's issued equity share capital.
Tata Consumer fundraising: Tata Group-owned Tata Consumer Products is set to discuss fundraising through debt issuance and equity during its board meeting on January 19, 2024, according to an exchange filing by the company.
"Fundraising by debt issue in the form of commercial papers/debentures and equity issue through Rights Issue or any other appropriate mode," the company said in the filing.
Organic India acquisition details
This announcement follows Tata Consumer's recent corporate developments, marking the second major disclosure on the same day. Earlier, the company unveiled plans for the acquisition of Organic India, a prominent 'better for you' organic brand encompassing Food & Beverages and Nutraceutical categories.
Tata Consumer Products has signed definitive agreements to acquire up to 100 per cent of Organic India's issued equity share capital. This aligns with Tata Consumer's strategic objective to broaden its product portfolio and expand its market reach in rapidly growing and high-margin categories, creating a robust health and wellness platform.
The addressable market for the categories covered by Organic India is estimated at Rs 7,000 crores in India and Rs 75,000 crores in international markets where Tata Consumer has a strong foothold. The acquisition is expected to yield substantial synergy benefits in distribution, logistics, and overhead.
Published January 13th, 2024 at 10:14 IST