Tata plans to acquire 5 Consumer Brands
2022-05-19Tata Consumer Products Ltd wants to go on an acquisition spree to strengthen its position in the country's competitive consumer goods sector and is in discussions to buy up to five brands.
The conglomerate will likely face stiff competition in the sector from existing global giants such as Unilever, as well as Reliance Industries Ltd., which plans to acquire up to 60 small grocery and household consumer goods brands within six months.
Tata Consumer Products' Chief Executive Officer Sunil D'Souza said, “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.”
Tata's expansion comes amid the severe inflationary turmoil as the war in Ukraine, national agri-commodities export bans and choked supply-chains push up input costs for consumer goods companies.
Tata has managed to weather the inflation impact as the prices of the three main products it sells- coffee, tea and salt, have remained relatively stable, although the firm feels the “niggling” increases in freight and packaging costs.
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