Tata Consumer Products has acquired two fellow Indian food groups: India-based Capital Foods and Organic India.

The Indian conglomerate has snapped up the two companies for a combined fee of Rs70bn ($845m).

Tata Consumer Products will buy 75% of noodles and condiments maker Capital Foods upfront. Under the terms of the deal, the company will acquire the balance of the Ching’s Secret brand owner within the next three years.

Organic India, a supplier of supplements, herbal teas, ghee and honey will be acquired for an upfront fee of Rs19bn.

Tetley Tea brand owner Tata Consumer Products said the moves align with its strategy to “expand its product portfolio and its target addressable market in fast-growing/high margin categories”.

Sunil D’Souza, the group’s MD and CEO, said: “We are excited to welcome Capital Foods into Tata Consumer Products. We believe this is a good strategic and financial fit.”

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He added that the deal will “open up significant market opportunities in the fast-growing non-Indian cuisines segment, leveraging the sales and distribution platform that we have built”.

“The strong brand recall of Ching’s Secret and Smith & Jones coupled with our operational strength across channels makes us extremely confident of driving topline growth and realising cost synergies. This transaction will accelerate momentum in our business and is margin accretive to our business.” 

Headquartered in Mumbai, Capital Foods sells “Desi Chinese foods” such as noodles, sauces and soups, under the Ching’s Secret brand. Under the Smith & Jones brand, the company offers Indian masala packs with inspiration from global cuisines.

Ajay Gupta, founder of Capital Foods, said: “To be associated with the iconic Tata Group is a dream come true for me. Just the name, Tata, instils a sense of trust and pride in every Indian. Like Capital Foods, Tata is a home-grown brand that is globally recognised. Tata Consumer Products is a multi-conglomerate that spans the globe with quality food ingredients and products.

Organic India, founded in 1997, sells into more than 40 markets. In a presentation to investors, Tata Consumer Products said Organic India’s US customers included Whole Foods Market and Sprouts Farmers Markets.

D’Souza said: “Organic India’s differentiated products and robust supply chain together with Tata Consumer’s distribution strength across channels in India and specific geographies globally makes us confident of accelerating momentum in the business while improving our margin profile.”

Last September, Tata Consumer Products brushed off a report the group was in talks to buy a majority stake in Indian peer Haldiram’s.