Nestle Eying ‘Ching’s Secret’ Owner Capital Foods In $1 Billion Deal
Swiss multinational Nestle is reportedly in talks to acquire Indian food company Capital Foods, the parent company of Ching’s Secret, in a deal worth $1 billion.
According to reports, the $1 billion acquisition of Capital Foods, the parent company of the well-known Indian instant noodle brand Ching’s Secret, by the multinational food and beverage business Nestle is being discussed.
Instant noodles, sauces, and ready-to-eat meals are just a few of the food items offered by 1996-founded Capital Foods. In India, its flagship brand, Ching’s Secret, has become well-known, with customers favoring its line of instant noodles in particular.
Nestle is presently performing due diligence on Capital Foods, according to sources with knowledge of the situation, and is anticipated to make a definitive decision on the acquisition in the upcoming weeks.
If the agreement is finalized, Nestle would have made one of its biggest purchases in India to date.
Nestle is making the move in an effort to increase its influence in the rapidly expanding Indian food market, which is anticipated to reach $540 billion by 2025.
The business is well-established in the nation thanks to well-known names like Maggi noodles, KitKat chocolates, and Nescafe coffee.
Nestle would gain access to Ching’s Secret’s devoted customer base through the purchase of Capital Foods, which would also assist the business in further diversifying its product line in India.
Additionally, it would help Nestle compete more successfully with Unilever and PepsiCo, two other significant players in the Indian food industry.
The agreement would represent a major turning point for Capital Foods, which has been expanding quickly lately. In the fiscal year that ended in March 2021, the company’s revenue grew by 23% to INR 634 crore ($85 million), and it has been expanding its distribution network throughout India.
The purchase is still pending regulatory approval, though, and could run into problems with Indian officials, who have recently been cracking down on foreign firms acquiring domestic firms.
Nestle will also face competition from rival buyers, as Capital Foods has allegedly garnered interest in the past from a number of other businesses.
Overall, Capital Foods’ possible acquisition by Nestle is a major development in the Indian food market and could have wide-ranging effects on both businesses and the larger sector.
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