New Delhi: 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.