NEW DELHI :
Tata Consumer Products Limited (TCPL) on Monday stated it’ll acquire PepsiCo’s stake in NourishCo Beverages Limited—a 50:50 three way partnership between the 2 corporations because it strikes to construct a robust play in the packaged drinks market.
“This transfer is in line with Tata Consumer’s deal with widening its portfolio in the meals and drinks area,” Tata Consumer Products Ltd stated in a submitting to the inventory trade on Monday.
The JV was shaped in 2010 as the 2 joined fingers to develop and promote a variety of wholesome hydration drinks. NourishCo Beverages Limited sells hydration manufacturers corresponding to Himalayan mineral water, Tata Gluco Plus and Tata Water Plus.
Tata Consumer Products Ltd is a shopper merchandise arm that covers the meals and beverage pursuits of the Tata Group.
“This decision has been made after extensive deliberation between the JV partners and we feel this will bring in greater focus to the NourishCo Business. The liquid beverages category has exciting growth potential and this move will help us strengthen and widen our presence in it. Over the years, NourishCo has built a capable team and a network of distributors, co-packers and vendors. We will look to scale up these capabilities further and build a differentiated position in this segment…” Sunil D’Souza, MD & CEO, Tata Consumer Products, stated in a press release.
Over time, Tata Consumer Products intends to use its sizeable sources, the capabilities acquired and the manufacturers it now has, to give wings to its ambition in the worth added liquid refreshment drinks area in India, the corporate stated in its assertion.
The transfer comes as India’s main conglomerate Tata Group has moved to consolidate its packaged shopper items enterprise to kind Tata Consumer Products that now has a large play throughout meals and drinks.
Last May, Tata Global Beverages stated it’s buying all of the branded meals companies from Tata Chemicals Ltd in an all-stock transaction geared toward making a shopper enterprise firm.
The new enterprise created by the merger was consolidated underneath Tata Consumer Products Ltd to embody numerous meals and beverage manufacturers—Tetley Tea, Eight O’Clock Coffee, Tata Tea, Tata salt and Tata Sampann, which sells packaged pulses and spices.