Tata Terminates Its Eight-Year-Old Joint Venture With Pepsico

CIOReviewIndia Team | Tuesday, 19 May 2020, 11:54 IST

                                 Tata Terminates Its Eight-Year-Old Joint Venture With Pepsico

Tata Consumer Products announced it will buy the entire remaining stake in NourishCo Beverages, which is an equal joint venture with PepsiCo, as a part of its focus on expanding its food and beverages business.

Tata stated that it is terminating the eight-year-old Joint Venture and making the organisation a wholly-owned subsidiary as well as transfer rights over the brand Gluco Plus from PepsiCo. NourishCo has Himalayan mineral water and Tata Water Plus in its portfolio.

Tata Consumer Products Ltd (TCPL) on May 18th 2020, declared that it will acquire the stake of PepsiCo in their joint venture NourishCo Beverages. However, the size of the deal is not disclosed by the company.

TCPL stated that this move is an effort by the Tata Group firm to widen its portfolio in the growing food and beverages spaces.

NourishCo is a 50:50 joint venture of TCPL and PepsiCo, which operates in the healthy hydration space and possesses brands such as Himalayan Mineral water, Tata Gluco Plus and Tata Water Plus. Formed in the year 2010 as a joint venture between Tata Global beverages (now TCPL) and PepsiCo India, NourishCo, over the years, has built a capable team and a network of distributors, co-packers and vendors.

Tata Consumer Products Ltd said that it intends to utilise its sizeable resources, the capabilities acquired and the brands it now has. This would give wings to its ambition in the value-added liquid refreshment beverages space in the country.

“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,” said Sunil D’Souza, Managing Director, Tata Consumer Products in a statement.

“We will look to scale up these capabilities further and build a differentiated positioned 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”, adds Sunil.

In May 2019, Tata Group had announced the consolidation of all its consumer products business with all branded food businesses of Tata Chemicals. These include packaged spices, pulses and salt being merged into Tata Global Beverages in an all-stock deal.

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