The board of the Tata Group firm’s FMCG arm on Tuesday approved the Scheme of Amalgamation of the three wholly-owned subsidiaries of the company, informed Tata Consumer Products (TCPL)
Tata Consumer Products said it would merge its three wholly-owned subsidiaries- NourishCo Beverages, Tata SmartFoodz and Tata Consumer Soulfull– to ensure “more effective utilisation of the resources” and reduce “compliance requirements”.
The board of the Tata Group firm’s FMCG arm on Tuesday approved the Scheme of Amalgamation of the three wholly-owned subsidiaries of the company, informed Tata Consumer Products (TCPL).
The combined businesses will have “more effective utilisation of the resources of the said companies, reduction in overheads, costs and expenses, economies of scale, elimination of duplication of work and rationalisation and reduction of compliance requirements”, said TCPL.
“The scheme is proposed to the advantage of the transferor companies and the transferee company and will yield beneficial results for the shareholders, creditors, employees, and all concerned,” said TCPL, which was earlier known as Tata Global Beverages.
The scheme involves the amalgamation of wholly-owned subsidiary companies with the holding company.
As there are intergroup transfers, there will be no cash or share consideration involved in this process. All transferor companies are wholly-owned subsidiaries of TCPL.
TCPL also added the scheme is subject to necessary statutory and regulatory approvals, including sanction by the National Company Law Tribunal (NCLT).
“The transferor companies were all acquired by the transferee company from their earlier promoters and have since become wholly-owned subsidiaries of the transferee company. The businesses of the transferor companies can be combined and carried on in conjunction with the business of the transferee company more conveniently and advantageously,” said TCPL.
NourishCo Beverages, whose portfolio includes mineral water brand Himalayan, glucose-based drink Tata Gluco Plus, and Tata Water Plus, had a turnover of Rs 620.37 crore in FY23.
Earlier, it was a 50:50 joint venture with PepsiCo. However, in 2020 TCPL acquired the beverage major’s stake to widen its portfolio into the segment.
Similarly, Tata Consumer Soulfull, which had a turnover of Rs 64.30 crore in FY23, was also acquired by TCPL in February 2021. Earlier, it was earlier known as Kottaram Agro Foods.
Tata SmartFoodz’s turnover for the financial year ended March 31, 2023, was at Rs 15.71 crore. It is engaged in the business of manufacturing, distribution and sale of ready-to-eat ethnic and international food products and ready-to-cook gravies and pastes under various well-known brands, including ‘Tata Sampann Yumside’ and ‘Tata Raasa’.
On Tuesday, TCPL reported a 36.4% increase in consolidated profit before exceptional items and tax of Rs 505.43 crore and its revenue from operations was up 11% to Rs 3,733.78 crore.
