Chennai, Nov 12 (IANS): Continuing its focus on expanding into value added food products Tata Consumer Products Ltd has inked a deal to buy group company the ready-to-eat-maker Tata SmartFoodz Limited for Rs 395 crore cash.

Tata Consumer Products has entered into a share purchase agreement with Tata Industries Ltd to acquire its entire holdings in Tata SmartFoodz for Rs 395 crore.

With this buy, Tata Consumer Products will add to its portfolio 'Tata Q' brand of ready-to-eat packaged food products, the former said.

Last fiscal Tata SmartFoodz had posted a turnover of Rs 14.66 crore and has total assets of Rs 312.76 crore and a networth of Rs 243.75 crore.

Tata SmartFoodz's plant is located in Sri City in Andhra Pradesh making noodles, biryani, pasta and others.

According to Tata Consumer Products, the acquisition is expected to be completed in seven days.

"Tata SmartFoodz is a good strategic fit for us given the nature of its business and it will also allow us to expand our portfolio into the Ready to Eat (RTE) segment. RTE is a fast-growing segment in India and a sizeable opportunity in the International markets," Sunil D'Souza, Managing Director & CEO, Tata Consumer Products said.

Tata Consumer Products has under its umbrella the principal food and beverage interests of the Tata group.

The Company's portfolio of products includes tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks, and mini meals.