World Food India 2025: Tata Consumer Signs Rs 2,000-Crore Pact With Ministry Of Food Processing Industries

Tata Consumer Products Ltd. on Friday said it signed a non-binding memorandum of understanding with the Ministry of Food Processing Industries for an investment of up to Rs 2,000 crore over five years as part of the investment promotion activity for World Food India 2025, through a disclosure to the stock exchanges.

The company clarified that the proposed investment remains subject to financial evaluation of individual projects and requisite corporate and statutory approvals.

World Food India 2025, being organised by the Ministry of Food Processing Industries on Sept. 25-28, 2025, is a flagship international event positioning India as a 'Global Food Hub.' The event was inaugurated by Prime Minister Modi at Bharat Mandapam, New Delhi.

Meanwhile, Goldman Sachs has reiterated its bullish stance on Tata Consumer Products, maintaining a 'buy' rating while raising its price target to Rs 1,290 from Rs 1,270. The brokerage cited improved visibility on earnings and margin acceleration, underpinned by a sharp fall in tea prices that is expected to drive margin recovery from the second half of FY26.

The firm also placed Tata Consumer among its top bets in FMCG this year, supported by broader signs of consumption revival. Lower food inflation and state government cash transfers boosted demand in the June quarter, helping low-income consumption-driven categories such as FMCG.

Rural demand has been particularly strong, analysts noted, backed by a robust winter harvest, healthy summer sowing, subdued food inflation, and increased state-level welfare spending. Urban consumption, on the other hand, remained mixed, dampened by softer discretionary spending and one-off events. But Goldman Sachs expects urban demand to gradually improve as the impact of rate cuts feeds into easier financial conditions later in the year.

The scrip fell as much as 1.46% to Rs 1,117.60 apiece. It pared losses to trade 1.41% lower at Rs 1,118.20 apiece, as of 03:22 p.m. This compares to a 0.92% decline in the NSE Nifty 50 Index. It has risen 22.24% on a year-to-date basis, but is down 6% on a 12-month basis.

Out of 31 analysts tracking the company, 22 maintain a 'buy' rating, seven recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside/upside of 7.8%.