Report: Nestle is considering a $1 billion deal with Capital Foods, owner of 'Ching's Secret'

Updated : Mar 31, 2023 20:48
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Editorji News Desk

The largest food company in the world, Nestle SA, is one of the final bidders eying to buy Capital Foods Pvt., the proprietor of 'Ching's Secret.'

Ching's Secret is also endorsed by Bollywood actor Ranveer Singh.

According to Bloomberg, the Swiss company has been looking into the specifics of a possible deal for Mumbai-based Capital Foods, with any such deal likely to give the company a market value of more than $1 billion.

In addition to manufacturing "Ching's Secret" brand of fusion chutneys and spicy noodles., Capital Foods also sells the Smith & Jones masala blends and culinary pastes

Nestle India Ltd. has a market valuation of about $22.3 billion after its shares increased 10% over the previous 12 months and Following news that parent company Nestle SA is one of the top contenders for Capital Foods Pvt Ltd, shares of Nestle India increased by almost 3% on March 31.

But, as per Moneycontrol the deal would be expensive at a 10x EV/Sales ratio because Capital Foods is expected to generate only Rs 800 crore in revenue for FY23, in compariosn to the $1 billion bid placed by Nestle

Nevertheless, Nestle India's inclusion of the Ching's name will strengthen its position as the market leader.

 

 

 

Nestle

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