Tata Consumer will buy controlling stake in Organic India: Talks between the two companies are in advanced stage, FabIndia has 64% stake in the company.
Tata Consumer Products is at the forefront in 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.
Talks between the two companies are in advanced stage
Sources said that Tata Consumer Products has become the front runner among other contenders like ITC to buy controlling stake in Organic India. Sources said, ‘Tata wants to focus on consumer health and organic products segment. Organic India fits into the company’s investment thesis. Talks between the two companies are in the advanced stage.
Tata Consumer will help in expanding Organic India
“This business is non-core for Fabindia and they want to unlock value,” said another source. Tata Consumer, with the distribution strength of Tata Group, can help in growing Organic India.
Organic India is known for its range of herbal and green teas
A third source confirmed that discussions between Tata Consumer, Organic India and its investors have reached the final stage. 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.
Fab India has 64% stake in Organic India
A fourth source told Moneycontrol that Fab India holds 64% stake in Organic India. 17% stake is held by the founder promoters. 15% stake is held by Premji Invest and the remaining stake is with the employees and ESPS Trust. The source said the ongoing deal talks may or may not lead to a final transaction.
Shareholders and investors looking for an exit from the company
In an email response to Moneycontrol, a Fabindia spokesperson said, “We are in talks with a number of 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.
