Tata group has decided to transfer of its branded food business from Tata Chemicals to Tata Global Beverages in an all shares deal that will create an over Rs 9,000 crore giant. Tata Global Beverages will buy the business of selling edible salt, spices, and lentils and give shares in return to Tata Chemicals. Tata Global Beverages will rename itself after the deal as Tata Consumer Products.
The Boards of Directors of Tata Global Beverages and Tata Chemicals, at their respective meetings on May 15, approved the de-merger of the consumer products business of Tata Chemicals into Tata Global Beverages.
Tata Chemicals is the second-largest producer of soda ash in the world with manufacturing facilities in India, UK, Kenya and USA. It is India’s leading crop nutrients player and a leading player in crop protection business through its subsidiary Rallis India.