TCM Limited, formerly known as Travancore Chemical & Mfg. Co. Ltd., has officially disclosed a major strategic business decision during its Board of Directors meeting held on May 20, 2025. The company, which is listed on the Bombay Stock Exchange under Script Code 524156, announced a planned acquisition of Better Feeds Private Limited, a Palakkad-based cattle feed manufacturing company.

During the board meeting, which commenced at 10:30 A.M. and concluded at 11:00 A.M., the directors authorised the Managing Director to take steps towards this acquisition, including negotiating terms, conducting valuation, initiating due diligence, and signing the Memorandum of Understanding (MoU) with Better Feeds Private Limited (CIN: U15549KL2018PTC054928).

This MoU, once signed, will pave the way for the purchase of 100% equity shares of Better Feeds Pvt Ltd, making it a fully owned subsidiary of TCM Limited. The agreement will be formalised through a Share Purchase Agreement (SPA), subject to satisfactory results of the valuation and due diligence process.

Strategic Significance of the Acquisition

This move represents a strategic diversification by TCM Limited, which operates factories at Mettur Dam, Tuticorin, and Kalady. Known historically for its chemical manufacturing, TCM appears to be expanding into the fast-growing agricultural and livestock segment through this potential acquisition.

Better Feeds Private Limited, headquartered at Vaishnavam, Pulinchode, Kanjikode, Palakkad, Kerala – 678 621, is engaged in the business of manufacturing cattle feed. The company has a solid reputation in Kerala’s animal nutrition sector and represents a viable target for vertical integration by TCM.

The proposed acquisition aligns with TCM’s efforts to diversify revenue streams, enhance shareholder value, and gain a foothold in the sustainable agriculture sector. The growth in demand for high-quality livestock nutrition products in India provides a compelling rationale for this move.

Conditions and Next Steps

As per the regulatory filing, the entire transaction is subject to key conditions:

• Successful completion of valuation

• Comprehensive due diligence

• Negotiation and execution of definitive transaction documents acceptable to both parties

The board’s resolution has empowered the Managing Director to lead negotiations, ensuring a professional approach to integration and risk assessment.

Regulatory Compliance

This disclosure has been made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, marking it as a material event with potential long-term business implications for shareholders and stakeholders.

The company has advised the Bombay Stock Exchange (BSE) to take this into record, indicating transparency and regulatory adherence. The document was digitally signed by Gokul V Shenoy, Company Secretary of TCM Limited, ensuring its authenticity.

Broader Implications

This development can significantly alter TCM’s corporate profile by:

• Introducing a new revenue stream through the animal feed sector

• Leveraging synergies between chemical manufacturing and agriculture

• Improving market presence in Kerala and Southern India

• Boosting employment opportunities in the agro-processing sector

Additionally, this move supports India's Make in India initiative and local manufacturing ethos, potentially allowing the company to scale up and access new supply chains.

Company Overview

TCM Limited is a legacy industrial company with operations in multiple Indian states. It was incorporated as Travancore Chemical & Manufacturing Company Limited and later rebranded. Its focus lies on chemicals manufacturing, with facilities across Tamil Nadu and Kerala. Over the years, TCM has shown interest in evolving into a diversified industrial group.

The move to acquire Better Feeds Private Limited fits into this narrative, suggesting an intent to grow through acquisitions and sector expansion, especially in high-demand, recession-resistant sectors such as animal husbandry and agriculture.

About Better Feeds Private Limited

Incorporated in 2018, Better Feeds Private Limited has been steadily growing its footprint in the livestock feed segment in Kerala. It holds a reputable market presence in Palakkad and neighbouring districts. The company's primary business is the manufacturing and distribution of high-quality cattle feed products, which are essential in enhancing milk yield and animal health among Indian dairy farmers.

Given TCM’s established operations and manufacturing expertise, this acquisition could lead to operational efficiencies, quality upgrades, and product diversification in Better Feeds’ offerings.

Market Sentiment and Investor Perspective

From a shareholder and market perspective, such strategic acquisitions are often viewed favourably when:

• The target company has strong financials and market presence

• The acquiring company demonstrates a clear rationale and integration plan

• There is a long-term growth outlook associated with the deal

Investors will now await further updates including:

• Valuation outcomes

• Due diligence findings

• Terms of the definitive Share Purchase Agreement

• Timelines for integration

This could also spark analyst interest in TCM’s broader business strategy and future plans in agriculture-adjacent sectors.

Conclusion

In summary, TCM Limited’s board resolution to acquire Better Feeds Private Limited represents a forward-looking business move aimed at sector diversification and long-term value creation. The outcome of the due diligence and valuation will decide the transaction's success, but the intent reflects positively on TCM’s ambitions to expand responsibly and innovatively.

The acquisition, if concluded successfully, could help position TCM as a multi-sector industrial player, leveraging its legacy strengths while addressing the nutritional needs of India’s growing livestock population.

Stakeholders are advised to track upcoming disclosures and financial reports for further clarity on this landmark transaction.

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