Tata Consumer Products signed a non-binding Memorandum of Understanding (MoU) with the Ministry of Food Processing Industries on Friday. In an exchange filing, the Tata Group company said that, as per the MoU, it will invest up to Rs 2,000 crore over a period of five years in the food processing sector.
Tata Consumer added that the proposed investment in the food processing sector is subject to financial evaluation of the individual projects and obtaining relevant corporate and statutory approvals by the company.
The company said that when the terms and conditions for investment are finalised, it would make further disclosures about the investment. The company signed the MoU at the World Food India annual event in Delhi.
Tata Consumer on GST cuts
Speaking at the World Food Event, Sunil D’Souza, CEO and Managing Director at Tata Consumer Products, said that after the GST cuts, the company has reduced MRP on smaller packs. He added that at the moment it is difficult to change the grammage in the pack, but over time the company will figure how how to add grammage in the pack.
“Between the reductions of tax slabs, bringing government spending back and the reduction of rates, there will be a structural shift in the economy, putting more money into the hands of the consumer, thus driving consumption and GDP growth,” D’Souza said.
Tata Consumer rating update by CARE
On Friday, the credit rating agency CARE Ratings reaffirmed Tata Consumer Products’ rating to A1+ for commercial papers and short-term loan facilities. The reaffirmed rating covers a total borrowing of up to Rs 1,500 crore for the company.