It is worth noting that Nestle's Maggi currently dominates the branded instant noodles market, commanding approximately 60 per cent market share.
After prolonged discussions, it appears that the Tata Group is set to become the majority stakeholder in the parent company of Ching’s Secret, Capital Foods. Ratan Tata's group is reportedly in advanced stages of negotiations to acquire Capital Foods, the company that makes popular Desi Chinese products, including Instant noodles, Hakka Noodles, soups, sauces, Schezwan Chutney, and Desi Chinese masalas.
Reliable sources have informed ET NOW that Tata Consumer, housing renowned brands such as Tata Tea, Tetley, and Tata Salt, is positioned as the lead contender to secure a controlling stake in Capital Foods. The move comes after the main shareholders of Capital Foods, namely Founder and Chairman Ajay Gupta, Invus Group, and General Atlantic, decided to put the company up for sale in 2022.
Tata Consumer is rumuored to be valuing Capital Foods at an impressive Rs 5500 crore, making it a frontrunner in the acquisition race. Despite facing competition from other FMCG giants like Nestle and Kraft Heinz, Tata Consumer seems to have positioned itself as the top choice to acquire Capital Foods.
Responding to these speculations, Tata Consumer stated that it does not comment on market rumours. As of December 18, the company boasts a market cap of Rs 88,209.66 crore, with its FMCG stock settling at Rs 949.50, marking a red close. The stock's 52-week high stands at Rs 963.
It is worth noting that Nestle's Maggi currently dominates the branded instant noodles market, commanding approximately 60 percent market share.
Capital Foods, founded by Ajay Gupta in 1995, received backing from Kishore Biyani, CEO of Future Group, who was its first external supporter. In 2013, Future Consumer Enterprises, led by Biyani, divested its 44 per cent stake in Capital Foods to the European private equity fund Artal Group for Rs 180 crore, placing the valuation of the domestic food company, known for brands like Ching's Secret and Smith & Jones, at around Rs 400 crore.
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 "Ratan Tata's company ready to pay Rs 5500 crore to buy this company to compete with Nestle, Kraft Heinz")
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