TataConsumerProductsLtd (TCPL)on Monday said it will acquire the stake of PeopsiCo in their joint venture NourishCoBeverages.
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 foodandbeveragesspace, TCPL said in a statement.
NourishCo, a 50:50 joint venture of TCPL and PepsiCo, operates inthehealthyhydrationspaceandhas brands like Himalayan mineral water, Tata Gluco Plus and Tata Water Plus.
ThismoveisconsistentwithTataConsumer'sfocusonwideningitsportfoliointhefoodandbeveragesspace. Thesebrandshavebeencraftingtheirgrowthmodelswhicharenowreadyfordeploymentonawiderscale, TCPL said in a statement.
NourishCo was formed in 2010as a joint venture between Tata Global Beverages (now TCPL) and PepsiCo India.
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TCPL intendstouseitssizeableresources,the capabilities acquired and the brands it now has ,togivewingstoitsambitioninthevalue addedliquidrefreshmentbeveragesspaceinIndia, it said.
"ThisdecisionhasbeenmadeafterextensivedeliberationbetweentheJVpartnersandwefeelthis will bring in greater focus to the NourishCo Business. The liquid beverages category has exciting growth potential and this move willhelpusstrengthenandwidenourpresenceinit," TCPL MD&CEO SunilD'Souza said.
Overtheyears, NourishCohasbuiltacapableteamandanetworkofdistributors,co-packers and vendors.
We will look to scale up these capabilities further and build a differentiated positioninthissegment. WewouldliketothankPepsiCo fortheirpartnershipandsupporttotheJVsofar.Thishasbeen instrumental inhelpingbuildastrongfoundationfortheNourishCobusiness, he added.
After merging theconsumer products business of Tata Chemicals with Tata Global Beverages, the new entity was renamed TCPL and now ownsbrands like TATA Salt, TATA Tea, Tetley, Eight O' clock and Himalayan Water.