Tata Consumer Products Ltd (TCPL) announced that it will acquire PepsiCo’s stake in NourishCo Beverages Limited, a 50:50 joint venture between the two companies.
This move is consistent with Tata Consumer’s focus on widening its portfolio in the food and beverages space.
Over the last decade, NourishCo has focussed 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, the company 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.
Speaking on this development, Sunil D’Souza, MD and CEO, Tata Consumer Products, said, “This decision has been made after extensive deliberation between the joint venture 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,” he added.
“We would like to thank PepsiCo for their partnership and support to the joint venture so far. This has been instrumental in helping build a strong foundation for the NourishCo business,” D’souza concluded.
