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Tag: Kotak Investment Banking

  • Tata Consumer Products to acquire Organic India

    Tata Consumer Products to acquire Organic India

    Mumbai: Tata Consumer Products has announced that it has signed definitive agreements to acquire up to 100 per cent of the issued equity share capital of Organic India, one of the strongest ‘better for you’ organic brands spanning food & beverages and herbal & traditional supplements. This move is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market in fast-growing/high-margin categories. This acquisition will create a Health & Wellness platform for Tata Consumer Products.

    Organic India is a 25-plus years established brand with a geographical footprint covering over 48 countries, substantially from India and the USA. Its product portfolio spans premium and high-growth categories focused on sustainable living – herbal supplements, tea & infusions and organic packaged foods. Organic India has strong, long-standing relationships with 12,000 plus farmers and unparalleled end-to-end organic certifications across the supply chain. It pioneered commercial cultivation of tulsi and introduced high-value medicinal crops for farming in India. It has a portfolio of over 100 products in the Health & Wellness space.

    The total addressable market for the categories that Organic India is present in is Rs 7,000 crores in India and Rs 75,000 crores in international markets where Tata Consumer has a strong presence. This acquisition will provide significant synergy benefits in distribution, logistics and overheads apart from driving portfolio premiumisation and unlocking additional channels and new markets. Structural growth drivers for this portfolio include increasing demand for health & wellness products, growing consumer awareness around wellness and changing consumer preferences.

    Tata Consumer Products MD & CEO Sunil D’Souza said, “We are excited about bringing Organic India into Tata Consumer Products. This transaction aligns well with Tata Consumer’s overall strategic objectives and presents exciting market opportunities in the rapidly growing Health & Wellness segment. In addition, Organic India has built very strong relationships with farmers to create a robust organic supply chain with a trusted brand and a loyal consumer base. Organic India’s differentiated products and robust supply chain together with Tata Consumer’s distribution strength across channels in India and specific geographies globally makes us confident of accelerating momentum in the business while improving our margin profile.”

    Fabindia MD William Bissell said, “Tata is India’s most venerated and dynamic brand. For over a hundred and fifty years, it has stood as the visionary exemplar of Indian values: fairness, preservation of civilizational traditions, harmony with the natural world, and social uplift for all. That is why we are immensely excited that they will be guiding Organic India through its next chapter and stewarding the vital mission for which Organic India stands.

    We at Fabindia echo Jamsetji Tata’s vision that ‘The community is not just another stakeholder in business but is in fact the very purpose of its existence.’ Organic India works with a community of tens of thousands of farmers who work only with socially and ecologically sustainable methods. We are confident that Organic India will continue to thrive with the Tatas’ leadership.”

    Kotak Investment Banking, Trilegal and Sidley Austin have been TCPL’s exclusive financial and legal advisors for this transaction respectively.

  • Tata Consumer Products to acquire Capital Foods

    Tata Consumer Products to acquire Capital Foods

    Mumbai: Tata Consumer Products has announced that it has signed definitive agreements to acquire 100 per cent equity shares of Capital Foods, owner of the brands ‘Ching’s Secret’ and  ‘Smith & Jones’, in a phased manner. 75 per cent of the equity shareholding will be acquired  upfront and the balance 25 per cent shareholding will be acquired within the next three years.  This move is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market in fast-growing/high-margin categories.

    Capital Foods has strong umbrella platform brands with a portfolio of unique products for in-home consumption in fast-growing categories. Ching’s Secret is a market leader in desi Chinese across its product categories – chutneys, blended masalas, sauces and soups. Smith & Jones is a fast-growing brand catering to in-home cooking of Italian and other western cuisines. Overall, Capital Foods has first or second positions in five large categories.  

    This acquisition will enable Tata Consumer Products to expand its product portfolio and further strengthen its pantry platform. There are significant synergy benefits with the existing businesses of Tata Consumer Products in areas spanning distribution, logistics,  exports and overheads. The overall size of the categories in which Capital Foods operates in is estimated at Rs 21,400 crores. Structural growth drivers for the category include continued growth in income levels, evolving consumer preferences leading to increased salience of global cuisines in in-home cooking, and increasing need for convenience.  

    Tata Consumer Products MD & CEO Sunil D’Souza said, “We are excited to welcome Capital Foods into Tata Consumer Products. We believe this is a good strategic and financial fit. It will open up significant market opportunities in the fast-growing non-Indian cuisines segment, leveraging the sales and distribution platform that we have built. The strong brand recall of Ching’s Secret and Smith & Jones coupled with our operational  strength across channels makes us extremely confident of driving topline growth and realising cost synergies. This transaction will accelerate momentum in our business and  is margin accretive to our business.”

    Capital Foods founder Ajay Gupta said, “Today is a historic day for Capital Foods.  To be associated with the iconic Tata Group is a dream come true for me. Just the  name, ‘Tata’, instils a sense of trust and pride in every Indian. Like Capital Foods, Tata  is a home-grown brand that is globally recognised. Tata Consumer Products is a multi

    conglomerate that spans the globe with quality food ingredients and products. In 28  years, from 3 bottles of sauces, to an entire ‘Desi Chinese’ cuisine block, Ching’s Secret has become a brand to be reckoned with. Smith & Jones covers another food block with tremendous potential. Together, Tata and Capital Foods can create a multi-national culinary brand that includes multiple food categories. The journey ahead is  going to be a giant leap for us, full of endless possibilities and definitely exhilarating!”

    Invus, the global advisor of Artal (a European evergreen family investor) MD Francis Cukierman said, “We are thrilled to have worked closely with Ajay Gupta and contributed to the journey of Capital Foods since 2013. Artal Asia, the Singapore  subsidiary of Artal Group, has decided to continue for the compelling next chapter of  growth of Capital Foods with Tata Consumer for the next few years.”

    General Atlantic managing director and head-India Shantanu Rastogi said: “We have had a great partnership with Ajay Gupta in scaling Chings and Smith & Jones into the most adored brands in their categories. We wish Ajay and Tata Consumer Products the best in the next phase of development of Capital Foods.”

    Kotak Investment Banking and Khaitan & Co have been TCPL’s exclusive financial and legal advisors on this transaction respectively.

  • Kotak Mahindra Bank gets new head of corporate and investments

    Kotak Mahindra Bank gets new head of corporate and investments

    MUMBAI: TV Raghunath has been appointed as the new head of corporate and investment banking at Kotak Mahindra Bank. His new position will see him focussing on covering the larger corporates in India in an integrated manner, with the help of the current Kotak Investment Banking senior executive director, Chetan Savla, as well as continuing to oversee Kotak Mahindra Capital Company (Kotak Investment Banking).

     

    Raghunath’s former post as managing director and CEO of Kotak Investment Banking is now taken up by S Ramesh — a veteran in the capital markets with extensive experience in handling marquee transactions, who can be credited with introducing many landmark initiatives in the Indian capital markets.

     

    In addition, Sourav Mallik has moved up to become the joint managing director of Kotak Investment Banking, while the Equities business will be headed by V. Jayasankar. Pankaj Kalra is expected to play a significant leadership role in coverage and ideation for corporates in the Corporate Advisory Group of the investment bank.

     

    Investment Banking corporate president KVS Manian said, “As I contemplate the future, I am excited about the significant opportunities that exist for us as a group to build a high-quality corporate franchise. With these organizational changes, I am confident that we are well structured to achieve the next level of growth.”