New Delhi, 19 January: Tata Consumer Products Ltd (TCPL) has unveiled its strategy to raise Rs 3,500 crore through debt financing to facilitate the recent acquisitions of Capital Foods and Organic India. The decision was formalized during a board meeting on Friday, where the company approved the “raising of funds through the issuance and allotment of Commercial Papers, for an amount not exceeding Rs 3,500 crore.”
TCPL, the fast-moving consumer goods (FMCG) arm of the Tata Group, has been actively pursuing expansion through acquisitions. Last week, it announced the acquisition of Capital Foods, renowned for brands such as Ching’s Secret and Smith & Jones, at an enterprise valuation of Rs 5,100 crore. Additionally, TCPL acquired Fab India-backed Organic India, a key player in the health and wellness category, at an enterprise value of Rs 1,900 crore.
The decision to raise funds through debt indicates TCPL’s commitment to ensuring seamless financial resources for these strategic acquisitions. The infusion of capital is slated to act as bridge funding, streamlining the payment process for the proposed acquisitions and fortifying TCPL’s position in the ever-evolving FMCG sector.
This move underscores Tata Consumer Products’ proactive approach to solidifying its market presence and diversifying its product portfolio through strategic acquisitions in the competitive consumer goods landscape. Investors and industry watchers will be keenly observing the developments as TCPL navigates these significant moves in the pursuit of sustainable growth and market expansion.
Comments are closed.