Tata Consumer raises Capital Foods stake to 80 per cent

MUMBAI: Tata Consumer is adding a little more spice to its food ambitions, raising its stake in Capital Foods, the company behind Ching’s Secret and Smith & Jones, to 80 per cent as it moves closer to full ownership.

Tata Consumer Products acquired an additional 5 per cent stake in Capital Foods from Wildflower Private Trust on September 1, taking its holding from 75 per cent to 80 per cent of the company’s paid-up equity share capital. Following the transaction, Tata Consumer holds 27,95,533 shares in Capital Foods.

The move builds on Tata Consumer’s original agreement to acquire Capital Foods announced in January 2024. The company had initially bought 75 per cent of the business and planned to acquire the remaining 25 per cent within three years of the initial transaction.

The latest purchase leaves Tata Consumer with 20 per cent still to acquire, putting the company further along its stated path towards complete ownership.

Capital Foods gives Tata Consumer a stronger foothold in packaged and convenience foods through Ching’s Secret, known for its Desi Chinese range, and Smith & Jones, which operates across cooking products and food ingredients.

The acquisition also fits into Tata Consumer’s wider strategy of moving beyond its traditional beverages and staples portfolio and building scale in categories shaped by demand for convenient, ready-to-use and packaged foods.

With the latest transaction, Tata Consumer has consolidated its control of Capital Foods while retaining the final 20 per cent as the next step towards full ownership.

Meanwhile, Tata Consumer Products’ shares closed 0.67 per cent lower at Rs 1,030.50 on September 1.