Tata Consumer Products Limited (TCPL) will acquire Kottaram Agro Foods (KAF), which owns the brand 'Soulfull', for Rs 155 crore. With this acquisition, TCPL will be foraying into new categories in the packaged foods space.
As per the agreement, Kottaram’s promoters will also be entitled to a contingent consideration, which is payable upon the company achieving certain operational and financial milestones over five years. The acquisition will likely be completed before March 31.
Sunil D'Souza, MD and CEO, TCPL, said, “This acquisition is a good strategic fit for Tata Consumer Products. It opens to us significant new market opportunities in the fast-growing mini-meals segments and helps us partner a passionate and ambitious team of entrepreneurs who will remain and become a part of the Tata Consumer Products team.”
Founded by Prashant Parameswaran, Rasika Prashant, Dr. KK Narayanan, and Amith Sebastian in 2013, Kottaram Agro Foods operates in the health and wellness food segment with a portfolio of millet-based products for kids and adults. Presently, the Bengaluru-based start-up has a strong presence in select urban markets in south, west, and north India. The company had a turnover of Rs 39.38 crore in 2019-20.
Prashant Parameswaran, MD and CEO, Kottaram Agro Foods, stated, “We are extremely proud to associate with Tata Consumer Products which provides us a great platform for furthering Soulfull’s purpose of making ancient millets relevant for the 21 st century. Tata Soulfull will enhance the brand’s credibility and make health more accessible and mainstream while retaining its vibrancy. This partnership would enable us to not just scale our existing business but also enter new categories in the fast-growing health and wellness market.”