InvestorQ : Why has Tata Consumer Products acquired Kottaram Agro Foods of Bengaluru? What is the advantage of the purchase?
sara Kunju made post

Why has Tata Consumer Products acquired Kottaram Agro Foods of Bengaluru? What is the advantage of the purchase?

Answer
image
PUNEET KUMAR answered.
2 months ago
Follow

Tata Consumer Products, the consumer company created after the merger of the Tata Chemicals salt business into Tata Global Beverages, proposes to acquire Kottaram Agro Foods of Bengaluru for a consideration of Rs.156 crore. Kottaram Agro is engaged in the business of healthy breakfast cereals and millet based snacks.

As part of the deal, Tata Consumer will acquire 100% of the paid capital of Kottaram Agro Foods taking full control of the company in the process. The whole purpose and logic of the deal is to enable Tata Consumer to participate in multiple consumption occasions. This is a healthy participation in the breakfast occasion during the day.

For Kottaram Agro, the constraints of balance sheet will not restrict its expansion plans any longer. At the same time, Tata Consumer has also been looking at an opportunity to expand laterally into “On the Table” and “On the Go” categories to expand the breadth and depth of customer engagement. The transaction is expected to be completed in the Mar-21 quarter.

5 Views

image
Mary Joseph answered.
2 months ago
Follow

Tata Consumer Products, the consumer company created after the merger of the Tata Chemicals salt business into Tata Global Beverages, proposes to acquire Kottaram Agro Foods of Bengaluru for a consideration of Rs.156 crore. Kottaram Agro is engaged in the business of healthy breakfast cereals and millet based snacks.

As part of the deal, Tata Consumer will acquire 100% of the paid capital of Kottaram Agro Foods taking full control of the company in the process. The whole purpose and logic of the deal is to enable Tata Consumer to participate in multiple consumption occasions. This is a healthy participation in the breakfast occasion during the day.

For Kottaram Agro, the constraints of balance sheet will not restrict its expansion plans any longer. At the same time, Tata Consumer has also been looking at an opportunity to expand laterally into “On the Table” and “On the Go” categories to expand the breadth and depth of customer engagement. The transaction is expected to be completed in the Mar-21 quarter.

1 Views