January 13, 2024Anmol Nagpal

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.

Source: Unsplash