Tata Consumer to consider fundraising via debt issue
Tata Consumer board will consider and approve fundraising through debt issues in its board meeting scheduled on 19th January 2024.
Source: Tata Consumer Products
The Tata Group company informed Indian exchanges about the plan in its latest exchange filing on Friday evening.
Source: Pexels
Tata Consumer debt issue is one of its latest exchange filings on Friday at Indian stock market.
Source: Freepik
This is the second major corporate announcement made by Tata Consumer Products Ltd on Friday.
Source: Unsplash
Earlier, the company had announced the acquisition of Organic India, a ‘better for you’ organic brand spanning Food & Beverages and Nutraceutical categories.
Source: X Photo
Tata Consumer Products announced on Friday that it has signed definitive agreements to acquire up to 100% of the issued equity share capital of Organic India.
Source: Tata Consumer Products
Tata Consumer tea production for the current season (February-October 2023) declined 1% annually to 1,133 million kilogramme, against 1,366 million kilogramme during the same period last year (CY22)
Source: Pexels
Organic India is one of the strongest ‘better for you’ organic brands spanning Food & Beverages and Herbal & Traditional Supplements.
Source: X Photo
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.
Source: X Photo
This acquisition will create a Health & Wellness platform for Tata Consumer Products.
Source: iStock
The total addressable market for the categories that Organic India is present in is ₹7,000 crores in India and ₹75,000 crores in international markets where Tata Consumer has a strong presence.
Source: X Photo
This acquisition will provide significant synergy benefits in distribution, logistics, and overheads apart from driving portfolio premiumization and unlocking additional channels and new markets.
Source: X Photo
Structural growth drivers for this portfolio include increasing demand for Health & Wellness products, growing consumer awareness around wellness, and changing consumer preferences.