Tata Consumer Products Set to Merge Its Wholly-Owned Subsidiaries

Published on 2 November 2023 by

Tata Consumer Products

Tata Consumer Products Limited (TCPL), a leading company in the fast-moving consumer goods (FMCG) sector, has received official approval from its board of directors to merge its wholly-owned subsidiaries. This strategic decision is expected to bring about positive changes for various stakeholders. In this article, we will provide a simplified explanation of this merger.

The Merger Plan of Tata Consumer Products

  • TCPL, a top FMCG company, is taking a major step forward.
  • They are combining their wholly-owned subsidiaries, which include NourishCo Beverages Limited, Tata Smartfoodz Limited, and Tata Consumer Soulfull Private Limited.

Merger Date and Ownership

  • The merger is scheduled for April 1, 2024.
  • TCPL already held all the shares of these subsidiary companies.
  • They also acquired preference shares of Tata Consumer Soulfull Private Limited from its previous owners.

Share Capital and New Issuance

  • TCPL, as the parent company, owns all the shares in these subsidiary companies.
  • No new shares will be created by TCPL during the merger.

Regulatory Approval: Tata Consumer Products

  • The merger is contingent on obtaining necessary approvals from regulatory bodies.
  • One crucial approval is required from the National Company Law Tribunal under Sections 230 and 232 of the Companies Act, 2013.

Positive Impact on Stakeholders

  • The merger is expected to benefit various stakeholders, including shareholders, creditors, and employees.
  • This move is viewed as a positive development for both the subsidiary and parent companies.

Overview of TCPL’s Business

  • TCPL primarily engages in the manufacturing, marketing, and sale of consumer products.
  • They offer a wide array of products, such as tea, coffee, water, salt, spices, protein foods, and more.
  • These products are marketed under well-recognized brands like Tata Tea, Tetley, Tata Salt, and Tata Sampann.

In summary, Tata Consumer Products Limited is embarking on a significant journey by merging its wholly-owned subsidiaries, which is expected to yield positive results for all parties involved. This step underscores TCPL’s commitment to the FMCG industry and its mission to deliver high-quality consumer products.