Tata Consumer Products Limited announced that it will acquire PepsiCo’s stake in NourishCo Beverages Limited, a 50:50 joint venture (JV) between the two Companies. The JV was formed in 2010 through a joint venture agreement between Tata Global Beverages and PepsiCo India.
Tata Consumer said that the acquisition will widen its portfolio in the Food and Beverages space.
“Over the last decade, NourishCo has focused on building brands in the healthy hydration space and has Himalayan mineral water, Tata Gluco Plus and Tata Water Plus in its portfolio. These brands have been crafting their growth models which are now ready for deployment on a wider scale. 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 press release mentioned.
Commenting on the acquisition, Sunil D’Souza, MD & CEO, Tata Consumer Products said, “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.”
“We would like to thank PepsiCo for their partnership and support to the JV so far. This has been instrumental in helping build a strong foundation for the NourishCo business,” he added.
NourishCo is keenly focused on enhancing the hydration category in India. The portfolio includes Himalayan, Tata Gluco Plus, Tata Water Plus and Nutrient Water. The company says it has built an ambitious pipeline of innovations that will be used to fuel growth and create newer hydration solutions.
Tata Consumer Products’ key beverage brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand and Himalayan Natural Mineral Water. Its foods portfolio includes brands such as Tata Salt and Tata Sampann. The Company has a consolidated revenue of Rs10,000 cr and employs 2,200+ people in its branded business.
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