India-based Tata Consumer Products Limited (TCPL)  has signed a definitive agreement to acquire 100% equity in Kottaram Agro Foods (KAF), which owns Soulfull, for Rs1.5bn ($28.8m).

The acquisition is a part of TCPL’s move to widen its products portfolio in the ‘on the table’ and ‘on the go’ categories.

Founded in 2011 by Prashant Parameswaran, Rasika Prashant, Dr K K Narayanan and Amith Sebastian, KAF launched Soulfull brand in 2013.

With a focus on health and wellness-related food items, Soulfull brand has a wide range of millet-based products for kids and adults.

Soulfull has a strong foothold in the urban South, West and North India.

Its range of products include cereals, healthy snacks, muesli and plant-based protein drinks made from millets such as ragi.

This deal will help achieve synergies in areas of distribution, procurement, and logistics.

The Tata brand is expected to help boost the growth of Soulfull brand further.

The transaction for the acquisition should conclude by Q4 of FY 2021.

Tata Consumer Products MD & CEO Sunil D’Souza said: “This acquisition is a good strategic fit for Tata Consumer Products. It opens to us significant new market opportunities in the fast-growing mini-meals segments and helps us partner a passionate and ambitious team of entrepreneurs who will remain and become a part of Tata Consumer Products team. Soulfull synergises well with our existing product portfolio, our distribution network as well as the supply chain.

“We believe Tata Consumer is well-positioned to unlock the full potential of the “Soulfull” brand and scale up its presence given the growing consumer need of healthy and convenient food options that they can trust.’

Kottaram Agro Foods MD and CEO Prashant Parameswaran said: “We are extremely proud to associate with Tata Consumer Products which provides us a great platform for furthering Soulfull’s purpose of making ancient millets relevant for the 21st century. Tata Soulfull will enhance the brand’s credibility and make health more accessible and mainstream while retaining its vibrancy.

“The Tata brand is one that has always inspired me and fits perfectly with the values of Soulfull. This partnership would enable us to not just scale our existing business but also enter new categories in the fast-growing Health and Wellness market.”