Tata Chemicals' consumer biz merger with TGBL to create Rs 9k-cr Tata Consumer Products

Updated: few hours ago

Mumbai/New Delhi, May 15 (PTI) With an intent to put in place a consolidated platform for its consumer business and become a leader in the FMCG segment, Tata Group Wednesday announced the transfer of the branded food business from Tata Chemicals to Tata Global Beverages in an all shares deal that will create an over Rs 9,000 crore giant.

Under the agreement, Tata Global Beverages (TBGL) will buy the business of selling edible salt, spices, and lentils and give shares in return to Tata Chemicals (TCL).

TGBL will rename itself as Tata Consumer Products after the deal.

"The trigger (for merger) is that Indian market is poised for rapid growth and now we have businesses in both the enterprises (TGBL and TCL) which are of scale and size which makes them to bring together. Also, we didn't want to do this till we establish our clear leadership position in both the companies in key categories," TGBL Managing Director Ajoy Misra told reporters during a conference call after the announcement.