Tata to buy out PepsiCo’s stake in JV NourishCo Beverages

Tata Consumer Products Ltd (TCPL) on Monday said it will acquire the stake of PeopsiCo in their joint venture NourishCo Beverages. The size of the deal was not disclosed by the company.

The move is an effort by the Tata Group firm to widen its portfolio in the growing food and beverages space, TCPL said in a statement. NourishCo, a 50:50 joint venture of TCPL and PepsiCo, operates in the healthy hydration space and has brands like Himalayan mineral water, Tata Gluco Plus and Tata Water Plus.

“This move is consistent with Tata Consumer’s focus on wideningits portfolio in the food and beverages space. These brands have been crafting their growth models which are now ready for deployment on a wider scale,” TCPL said in a statement. NourishCo was formed in 2010 as a joint venture between Tata Global Beverages (now TCPL) and PepsiCo India.

TCPL 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, it 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," TCPL MD & CEO Sunil D’Souza said.

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.

After merging the consumer products business of Tata Chemicals with Tata Global Beverages, the new entity was renamed TCPL and now owns  brands like TATA Salt, TATA Tea, Tetley, Eight O’ clock and Himalayan Water.  PTI KRH ANU ANU.