Tata Consumer Products (TCP) and Wipro Consumer Care and Lighting are in the race to buy a majority stake in Chennai-based Aachi Masala Food for Rs 1,000 crore, sources said.
If the deal goes through, it will be a valuable addition to Wipro Consumer Care and Lighting's portfolio in the ready-made masala market.
In April, Wipro announced that it will buy Brahmins, a Kerala-based traditional vegetarian spice mix and ready-to-cook brand for an undisclosed amount.
Wipro, maker of Santoor soaps, also announced in December last year that it has signed a definitive agreement to buy Nirapara to produce an extensive range of products, starting with spices and ready-to-cook items.
TCP, on the other hand, is already present in the segment with its own brand Tata Sampann, and this buyout could help strengthen its hold in the ready-made masala market.
The promoters of Aachi Masala Foods are expected to hold a minority stake.
The company, whose revenues stood at Rs 1,660 crore and its net profit at Rs 21.7 crore in FY22, has become a takeover target of various larger players.
A banker said some of the private equity firms had also shown interest in acquiring the company.
TCP and Wipro Consumer Care declined to comment on "market speculations."
In October last year, Dabur India also picked up 51 per cent stake in Badshah Masala for a cash consideration of Rs. 587.52 crore.
The company said the spices market in India is Rs. 60,000 crore, in which branded spices' sales account for Rs. 25,000 crore.
The branded spices market is growing at the rate of 15-20 per cent.
In 2020, ITC also entered the space as it bought out Sunrise Foods for Rs 2,150 crore.
TCP is in the market to acquire a majority stake in the masala brand after its talks for a majority stake in packaged water brand Bisleri for around Rs 7,000 crore fell through due to valuation concerns.
In recent years, the Tata group has increased its market share in several sectors by acquiring their rivals.
Tata Steel acquired Bhushan Steel and Neelachal Ispat in 2018 and 2022 respectively, while Tata Sons acquired a stake in Air India last year.
-- Sharleen D'Souza &
Dev Chatterjee / Business Standard
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