Tata Consumer–Danone India Deal Talks Stall Over Strategy

Negotiations between Tata Consumer Products Ltd (TCPL) and Danone India over a proposed acquisition have stalled, as the two sides were unable to align on strategic priorities and valuation, delaying what was expected to be a major deal in India’s nutrition and wellness segment.

Danone had reportedly valued its India portfolio — including nutraceuticals and specialised nutrition brands — at about $1.2 billion, but differences over strategic direction and business fit led both companies to halt talks instead of forcing a sub-optimal agreement.

For TCPL, the acquisition was aimed at significantly expanding beyond its traditional staples and tea business into high-growth nutrition, wellness and protein-rich segments where it competes with global players such as Nestlé and Abbott. TCPL has been building its wellness portfolio through acquisitions like Soulfull, Capital Foods and Organic India, and strengthening offerings in protein and functional foods to tap rising health-focused consumption in India.

While both sides paused the current deal process, TCPL continues to pursue its growth strategy through organic expansion and targeted acquisitions, reflecting the broader competitive dynamics in the Indian consumer and nutrition markets.

Source : DAirynews7x7 Jan 31st 2026 ET

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