Tata Consumer Reportedly Tops Bid War For Fabindia-Backed Organic India

Tata Consumer Products is reportedly leading the competition against rivals, including ITC, to secure a majority stake in Fabindia-backed Organic India, a company specializing in organic herbal and health products.

What Happened: According to the sources quoted by Moneycontrol, the discussions between the involved parties are still progressing. The acquisition of a majority stake in Organic India aligns with Tata Consumer’s emphasis on the health and organic product segment. However, the report added that these discussions might not necessarily lead to a transaction.

Fabindia holds a 64% stake in Organic India, whereas the rest of the ownership is divided among founder promoters, Premji Invest, employees, and the ESPS trust. The exact details of the deal valuations or the proposed majority stake sale remain undisclosed.

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Tata Consumer’s interest in Organic India is not surprising, given its history of scouting significant acquisitions. Late last year, the company contemplated acquiring the drinking water brand Bisleri, but the deal did not materialize.

In September 2023, the company was reportedly in the final stages of acquiring Capital Foods Pvt Ltd, the brand behind famous names such as Ching's Secret and Smith & Jones. However, recent reports suggest that the deal was likely off the table and the noodle maker was reportedly contemplating an IPO for better valuation. The company also had plans to acquire Haldirams, but the deal fell through as well.

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