Tata Consumer Products Limited, formerly known as Tata Global Beverages, has agreed to acquire PepsiCo’s stake in NourishCo Beverages Limited, a 50:50 joint venture operated between the two firms.
The move represents Tata Consumer’s focus on widening its portfolio in the food and beverages space.
NourishCo was formed in 2010 through a joint-venture agreement between Tata Global Beverages and PepsiCo India.
Focused on building brands in the healthy hydration space in India, NourishCo’s portfolio includes Himalayan mineral water, Tato Gluco Plus and Tata Water Plus.
With the acquisition, Tata Consumer intends to strengthen its position in the liquid refreshment beverages space in India.
At the beginning of the year, it was rumoured that the companies were revising the terms of their joint venture to support individual expansion plans.
The deal, which was made for an undisclosed sum, follows the merger of Tata Chemicals and Tata Global Beverages to form Tata Consumer Products Limited. This reportedly marked a new strategic direction, an accelerated expansion into India’s fast-moving consumer goods market.
Under the new umbrella, the firm’s portfolio ranges from tea, coffee and water to salt, spices and packaged food. Key brands include Tata Salt, Tata Tea, Tetley and Eight O’clock.
“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,” said Sunil D’Souza, managing director and CEO of Tata Consumer Products.
He added: “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.”
In 2019, PepsiCo India announced plans to invest INR 5.14 billion ($74.4 million) over three years to build a new snacks manufacturing plant in Uttar Pradesh, India.
Meanwhile, Tata Coffee Vietnam Company, a subsidiary of Tata Coffee, opened a new instant coffee plant in Vietnam following a collaboration with GEA.
© FoodBev Media Ltd 2020
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