InvestorQ : What is the latest in the deal between Tata Consumer Products and Tata Smart Foods?
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What is the latest in the deal between Tata Consumer Products and Tata Smart Foods?

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Rashi Mehra answered.
3 weeks ago
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Tata Consumer Products, formerly Tata Global Beverages, signed an agreement to acquire 100% shares of Tata SmartFoodz from Tata Industries. This will be for a total cash consideration of Rs.395 crore. This is in sync with the focus of Tata Consumer on value added categories. Tata SmartFoodz specializes in the ready to eat market or the RTE market and also has a manufacturing facility in South India.

The acquisition will enable Tata Consumer Productsto expand its product portfolio with the addition of the RTE segment. With the rapid urbanization, this segment of ready to eat foods is expected to see exponential growth. There has been a huge demand for the services of QSR names and the online food order aggregators like Zomato and Swiggy. A largely young population also gives a demographic edge to the India business.

Tata Consumer Products will be able to fully leverage its domestic and International distribution network and brand franchise to maximize value of the instant foods business. This is a high customer touch product and will be a value addition for Tata Consumer. Tata Foodz also brings a unique technology to the table which would broadly gel with the distribution infrastructure of Tata Consumer in India and abroad.

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