Tata Consumer Products (TCPL) will fund its acquisitions of Capital Foods and Organic India, which have a combined enterprise value of Rs 7,000 crore, with internal cash reserves and bridge financing, MD and CEO Sunil D’Souza said on Sunday.
Both acquisitions are in regions with “huge runway for growth,” where margins are “far accretive” and the company is increasing at a high clip, he stated.
Furthermore, TCPL will continue to enhance its portfolio in the food and beverage category organically to cover gaps, but it will also look for inorganic growth possibilities if someone provides a stronger brand, technology and team, he said.
Last Friday, TCPL announced the entire purchase of Capital Foods, which owns brands such as Ching’s Secret and Smith & Jones, for Rs 5,100 crore, and Fab India-backed Organic India, which operates in the health and wellness market for Rs 1,900 crore.
The board of TCPL is set to meet on January 19 to discuss a proposal for debt and equity funding.
