Tata Consumer Products has purchased an additional 5% stake in Capital Foods, the company behind the popular Ching's Secret brand, increasing its holding from 75% to 80%. The move is a step toward the company's previously announced plan to acquire Capital Foods entirely.

The latest purchase marks continued progress in Tata Consumer's effort to take full ownership of the packaged foods maker, whose portfolio includes Ching's Secret desi Chinese sauces, noodles and condiments.

Tata Consumer Products, part of the Tata Group, first acquired a controlling 75% stake in Capital Foods in January 2024 in a deal valued at approximately ₹5,010 crore. At the time of that transaction, the company had indicated its intention to eventually acquire the remaining stake as well, in line with agreements reached with the founders and other shareholders of Capital Foods.

The acquisition of Capital Foods forms part of Tata Consumer's broader strategy of expanding beyond its traditional tea and coffee businesses into fast-growing categories such as packaged foods, beverages and ready-to-eat products. This diversification push has also included other acquisitions, such as the purchase of a majority stake in packaged drinking water brand Himalayan and organic foods business 24 Mantra Organic's parent, reflecting an industry-wide trend among large Indian consumer companies of buying established regional and ethnic food brands to drive growth in a fragmented packaged foods market.

The Ching's Secret brand gives the company a strong presence in the desi Chinese condiments segment, complementing its existing staples and beverages portfolio. Alongside Ching's Secret, Capital Foods also owns the Smith & Jones brand of sauces, soups and masalas, broadening Tata Consumer's reach across kitchen condiments. With the stake now at 80%, the remaining question is when Tata Consumer will complete the buyout of the final 20% held by founders and other shareholders under the existing agreements.

Source: CNBC-TV18