Nestle eying $1-bn deal for ‘Ching’s Secret’ owner Capital Foods: Report

Nestle SA, the world’s biggest food group, is among final bidders competing to acquire ‘Ching’s Secret’ owner Capital Foods Pvt as it seeks to boost its presence in a fast-growing economy like India, said a report on Thursday.

The Swiss company has been discussing terms of a potential deal for Mumbai-based Capital Foods, with any transaction likely to value the firm at more than $1 billion, reported Bloomberg.

Capital Foods makes the 'Ching’s Secret' brand of spicy noodles and fusion chutneys and also sells Smith & Jones cooking pastes and masala mixes.

Several other suitors have also expressed interest in buying Capital Foods and there’s no certainty Nestle will emerge as the winner, the report said.

Shares of Nestle India Ltd have gained 10% over the past 12 months, giving it a market value of about $22.3 billion. The firm started its first manufacturing facility in India in 1961 and sells everything from yogurt to cereals in the country. On Wednesday, Nestle India's shares closed 0.9% higher at Rs 19,120 apiece.

Investors in Capital Foods include General Atlantic, which bought a stake in the company in 2018.

The brand is endorsed by Bollywood actor Ranveer Singh.