'Eyeing more organic, inorganic buys"

Late Friday evening, Tata Consumer Products announced that it has signed pacts to acquire noodle and sauces player, Capital Foods, and a premium tea brand, Organic India, for a cumulative sum of 77,000 crore.

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How will both these acquisitions play out for Tata Consumer Products?

Both these acquisitions play out perfectly well into the already-defined platforms that we have articulated for Tata Consumer.

In tea, we have always talked about premiumisation. Organic India will do that for us. In our pantry platform, where we only had Tata Sampann, now we can play with pasta, noodles, chutneys, sauces, and soups. We have always looked at future-looking platforms. So far, we had proteins but now we have supplements with Organic India.

From a strategy perspective, all this fits very well. We've also said that we will aim to get into categories which are high growth and high margin. All the categories we are acquiring in both these acquisitions are 15 to 20 percent growth rate ones. They are very strong brands, and therefore, ability to grow is significantly higher.

Also, distribution is a huge opportunity with both of them. Our numeric reach is also higher. We have 10 times of Capital Foods reach and Organic India has a presence only in 24,000 outlets.