Nestle and ITC final bidders for Ching's secret maker Capital Foods

Updated : May 25, 2023 09:55
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Editorji News Desk

The two companies in the lead in the bidding war to acquire Mumbai-based Capital Foods are, Nestle India Ltd. and ITC Ltd. The winner of the race could pay anywhere between ₹4,000 crore and ₹5,000 crore in an agreement to buy the company that makes Ching's Secret and Smith & Jones food ingredients. The highest offer is from Nestle and ITC's offer is really close to that, as per Mint

For the past few months, Capital Foods and Nestle SA have been in negotiations for a deal; the estimated value that was bandied around was $1 billion. They weren't the only bidders, though; Kraft Heinz, Hindustan Unilever Ltd., Tata Consumer Products, and ITC were also interested in Capital Foods, one of India's leading producers of culinary food ingredients.

Nestle values Capital Foods slightly higher, between ₹4,000 crore and ₹5,000 crore, while ITC bid is slightly around the ₹4,000 crore range. The deal is in its final stages and the acquisition announcement would probably be made within a month.

Nestle's product offerings in India span across - food, beverage, chocolate, and confectionery categories. Maggi, which distributes seasonings, instant soups, and well-liked noodles, is its most well-known product. The corporation controls a market share of more than 60% in India's ₹11,600 crore instant noodle market, as reported by Mint

 

Nestle India

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