Tata Consumer Products is at the forefront of the race to buy controlling stake in Fabindia's Organic India. Moneycontrol has given this information quoting multiple industry sources. Organic India is an organic herbal and ayurvedic health products firm.
According to the report, Tata Consumer Products has become the front runner among other contenders like ITC to buy controlling stake in Organic India. Tata wants to focus on consumer health and organic products segments. Organic India fits into the company's investment thesis. Talks between the two companies are in advanced stage.
This business is non-core for Fabindia and they want to unlock value. Tata Consumer can help in growing Organic India. Organic India is known for its range of herbal and green teas. This is also an important segment for Tata. Tata Tea Premium is the flagship brand of Tata Consumer.
In an email response, a Fabindia spokesperson said, “We are in talks with several potential investors as some of our shareholders and investors are looking to exit the company. However, at present we do not have any concrete information regarding this matter. Tata Consumer Products said that it does not comment on market speculations.
The company's MD and CEO Sunil D'Souza had recently said that the company's focus is now on volume. The company has massive expansion plans in both urban and rural areas. Shares of Tata Consumer closed nearly 2% higher at Rs 967.85 per share. It has increased by 4% in the last one month and by 26% so far this year.
Tata Consumer's portfolio includes tea, coffee, liquid beverages and food. Tata Consumer also owns UK tea company Tetley. Tata also has a partnership with Starbucks. Shares of Tata Consumer today closed at Rs 848.90 with a rise of Rs 2.60 or 0.31%.
