Tata Consumer, ITC among companies looking to buy into Organic India

Tata Consumer Products and ITC Foods are among the firms that have begun discussions to acquire a significant stake in Organic India, The Economic Times reported on Friday. ET quoted sources as saying that Tata Consumer or ITC could either buy Fabindia's stake or acquire a fresh stake in Organic India. Backed by Fabindia, Organic India produces organic teas and health products.

A source told ET that Tata Consumer has been looking for acquisitions in the foods and beverages space after its buy-out discussions with mineral water maker Bisleri collapsed earlier this year. Backed by Premji Invest and Lighthouse Capital, Fabindia owns over 40 per cent stake in Organic India.

The source further stated that Organic India is being actively pursued by Tata Consumer Products, ITC and a few other packaged consumer goods companies.

According to the "Indian Organic Sector Vision 2025" report by the commerce ministry. Organic and wellness products have seen growth in double digits post-Covid-19. By 2026-27, the market is seen growing as much as 16-18 per cent a year till 2026-27.

Tata-Bisleri negotiations

In March, Tata Consumer Products (TCPL) ceased negotiations with Bisleri International over a potential acquisition. The firm said in a stock exchange notification that it "has not entered into any definitive agreement or binding commitment on this matter.

Last November, Ramesh Chauhan, the chairman of Bisleri International, had told Business Standard that he was in discussion with TCPL to sell a majority stake in the company for Rs 6,000-7,000 crore, adding that he expected the deal to be completed in 7-8 months.