Tata Consumer Products Limited (TCPL) on Monday said it will acquire PepsiCo’s stake in NourishCo Beverages Limited—a 50:50 joint venture between the two companies as it moves to build a strong play in the packaged beverages market.
“This move is consistent with Tata Consumer’s focus on widening its portfolio in the food and beverages space,” Tata Consumer Products Ltd said in a filing to the stock exchange on Monday.
The JV was formed in 2010 as the two joined hands to develop and sell a range of healthy hydration beverages. NourishCo Beverages Limited sells hydration brands such as Himalayan mineral water, Tata Gluco Plus and Tata Water Plus.
Tata Consumer Products Ltd is a consumer products arm that covers the food and beverage interests 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, said in a statement.
Over time, Tata Consumer Products intends to use its sizeable resources, the capabilities acquired and the brands it now has, to give wings to its ambition in the value added liquid refreshment beverages space in India, the company said in its statement.
The move comes as India’s leading conglomerate Tata Group has moved to consolidate its packaged consumer goods business to form Tata Consumer Products that now has a wide play across foods and beverages.
Last May, Tata Global Beverages said it is acquiring all the branded food businesses from Tata Chemicals Ltd in an all-stock transaction aimed at creating a consumer business company.
The new business created by the merger was consolidated under Tata Consumer Products Ltd to include various food and beverage brands—Tetley Tea, Eight O’Clock Coffee, Tata Tea, Tata salt and Tata Sampann, which sells packaged pulses and spices.
