Tata leading race to acquire maker of Ching’s Secret, values the company at Rs 5,500 crore

September 25,2023

N Chandrasekaran, Chairman of Tata Consumer Products Limited (TCPL) is reportedly in talks to acquire Capital Foods Pvt Ltd, the company behind food brands Ching’s Secret & Jones, according to a report from Economics Times. 

The company will be valued at Rs 5,500 crore if TCPL purchases 65-70% of it from its three investors, with a plan for acquiring the remaining 30% over time. The largest food corporation in the world, Nestle SA, as well as The Kraft Heinz Co., are the other competitors in the race.

Ajay Gupta, the chairman of TCPL and the company’s founder, along with General Atlantic and Invus Group, had agreed to sell their stake in the company in 2022. Kotak Mahindra has been assisting TCPL on this topic while negotiations have been taking place to decide the stake that current shareholders will maintain or if they will completely withdraw. Additionally competing for the share were Nestle SA and Kraft Heinz Co.

Numerous local and international businesses have expressed interest in purchasing Capital Foods Private Limited, including ITC, Hindustan Unilever, Orkla, Nissin Foods, and McCormick. The bid's initial need was set at $1.5 billion (Rs 12,442 crore), although it has now decreased.