In a strategic move aimed at bolstering operational efficiency and reducing compliance obligations, Tata Consumer Products Ltd (TCPL), a prominent name in the Fast-Moving Consumer Goods (FMCG) sector, has officially announced the merger of its three wholly-owned subsidiaries: NourishCo Beverages Limited, Tata SmartFoodz Limited, and Tata Consumer Soulfull Private Limited. This development comes after the board of directors at TCPL approved the Scheme of Amalgamation, signalling a pivotal change in the landscape of the FMCG industry.
Under the proposed scheme, these wholly-owned subsidiaries will be amalgamated with TCPL, the parent company, effective from April 1, 2024, as per the regulatory filing.
TCPL, the transferee company, had previously acquired and held all equity shares issued by the aforementioned transferor companies. In a further step towards consolidation, TCPL has also acquired all optionally convertible preference shares of Tata Consumer Soulfull Private Limited (formerly known as Kottaram Agro Foods Private Limited) from its previous promoters. As a result, the entire share capital of these three transferor companies, including Tata Consumer Soulfull Private Limited, is now held by Tata Consumer Products.
Notably, as all shares in the share capital of the transferor companies are already owned by TCPL, the holding company, there will be no issuance or allotment of new shares by TCPL in connection with the amalgamation. The scheme is, however, contingent on securing the necessary statutory and regulatory approvals, including approval by the Hon’ble National Company Law Tribunal under Sections 230 and 232 of the Companies Act, 2013.
TCPL has positioned this strategic amalgamation as a step towards greater operational efficiency. The anticipated benefits include more effective resource utilisation, a reduction in overheads, cost efficiencies, economies of scale, the elimination of duplicated work, and a significant streamlining of compliance requirements.
The company, previously known as Tata Global Beverages Ltd, is a significant player in the FMCG industry, engaged primarily in the manufacturing, marketing, distribution, and sale of a wide range of consumer products. It covers a wide range of food and beverage categories, encompassing tea, coffee, water, edible salt, spices, protein foods, ready-to-eat, and ready-to-drink beverages under renowned brands such as Tata Tea, Tetley, and Tata Salt.
In addition to streamlining its operations, TCPL also reported a robust financial performance. On Tuesday, the company disclosed a 36.4% increase in consolidated profit before exceptional items and tax, amounting to Rs 505.43 crore. Its revenue from operations saw a notable 11% rise, reaching Rs 3,733.78 crore.
This strategic move not only underscores TCPL’s commitment to innovation and efficiency but is expected to have a significant and lasting impact on the FMCG landscape in India. As the merger process unfolds, industry stakeholders and investors are keen to see how this transformative development reshapes the future of Tata Consumer Products Ltd and the broader FMCG industry.
