Major companies including Tata Consumer Products and ITC Foods are reportedly in talks to acquire a significant stake in Organic India, an organic teas and health products maker backed by Fabindia, according to executives familiar with the matter, The Economic Times reports.
Scouting for Acquisitions: Both Tata Consumer and ITC could potentially buy Fabindia’s stake or acquire a fresh stake in Organic India. “After its buy-out talks with mineral water maker Bisleri fell through earlier this year, Tata Consumer has been actively scouting for acquisitions in the foods and beverages space, especially in the health and wellness category,” one of the executives said to ET.
Organic Market Growth: The ‘Indian Organic Sector Vision 2025’ report by the commerce ministry shows that the organic and wellness products market, especially post-Covid-19, is growing at high-double digits. The report forecasts that this market will reach ₹75,000 crore by 2025. Experts anticipate this market will continue to grow at a yearly rate of 16-18% until 2026-27.
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