Tata In Acquisition Talks With As Many As 5 Consumer Brands

Tatas will likely face stiff competition in the sector from existing global giants such as Unilever, as well as Mukesh Ambani's Reliance Industries Ltd., which plans to acquire up to 60 small grocery and household consumer goods brands within 6 months.

Tata Consumer Products Ltd., the food and beverage arm of the $103 billion Indian conglomerate, wants to go on an acquisition spree to bolster its position in the country's competitive consumer goods sector, and is in discussions to buy up to five brands.

A "significant amount" of the Mumbai-based firm's future growth will come from inorganic expansion, Tata Consumer Products' Chief Executive Officer Sunil D'Souza said in an interview. The firm, which sells Tetley tea and Eight O'Clock coffee, is "engaging seriously" with a number of companies where it sees decent valuations, he said, declining to identify potential targets.

"We are reaching out to potential targets to have a chat to see if there is interest," said D'Souza, who took charge at the company two years ago after stints at PepsiCo Inc. and Unilever Plc. "There are places where valuations are high, but given the macro environment, given the liquidity, tightening etc, I am keeping my fingers crossed that they will become much more affordable."

Since its formation in 2020 during an ongoing streamlining of Tata's 153-year-old business empire, which operates across dozens of sectors, Tata Consumer Products has widened its portfolio by buying stakes in companies such as bottled-water business NourishCo Beverages Ltd., as well as cereal brand Soulfull.