Tata Consumer Products Limited (TCPL) announced today that it has signed definitive agreements to acquire 100% equity shares of Kottaram Agro Foods (KAF), owner of the brand ‘Soulfull’. This move is consistent with TCPL’s strategic intent to expand its product portfolio, and participate in multiple consumption occasions.
KAF was founded by Prashant Parameswaran, Rasika Prashant, Dr K K Narayanan and Amith Sebastian and the brand ‘Soulfull’ was launched in 2013. The brand operates in the Health and Wellness focused food segment with a portfolio of millet-based products for kids and adults. It is one of the fastest growing brands in India’s ‘better for you’ packaged foods market. The brand currently has a strong presence in select urban markets in South, West, and North India. With rich expertise in ancient millets like ragi, the brand has an innovative portfolio of products such as cereals, healthy snacks, muesli, and plant-based protein drinks.
This acquisition will allow TCPL to expand its product portfolio into the fast growing ‘on the table’ and ‘on the go’ categories and to participate in newer consumption occasions. There are also significant synergies possible with the existing business of TCPL in areas spanning distribution, procurement, and logistics. Additionally, the TATA name would further enhance the brand’s credentials with consumers.
The transaction is expected to be completed in the fourth quarter of FY 2021.
Sunil D’Souza, MD & CEO, Tata Consumer Products 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 Tata Consumer Products team. Soulfull synergizes well with our existing product portfolio, our distribution network as well as the supply chain. We believe Tata Consumer is well positioned to unlock the full potential of the “Soulfull” brand and scale up its presence given the growing consumer need of healthy and convenient food options that they can trust.’
Prashant Parameswaran, MD & CEO, Kottaram Agro Foods said, “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 21st century. Tata Soulfull will enhance the brand’s credibility and make health more accessible and mainstream while retaining its vibrancy. The Tata brand is one that has always inspired me and fits perfectly with the values of Soulfull. 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. With our team’s continued commitment to build the business under the aegis of Tata Consumer, we will be able to unleash an extremely powerful combination of the strength of Tata Consumer and the agility of Soulfull. I am extremely grateful to Dr K K Narayanan for his guidance and mentorship through the course of this journey. “