Tata Consumer Product gained 1.84% to Rs 353.3 after the company announced that it will acquire PepsiCo's stake in NourishCo Beverages, a 50:50 joint venture between the two companies.Tata Consumer Products will acquire the entire stake of PepsiCo in NourishCo (50%), consequently terminating the joint-venture and making NourishCo a wholly-owned subsidiary of the company as well as transfer of rights over the 'Gluco Plus / Gluco+' brand from PepsiCo.
NourishCo operates in the healthy hydration space and has currently within its portfolio products such as Himalayan mineral water, Tata Gluco Plus and Tata Water Plus. The total cost of acquisition is Rs 29 crore for buying the PepsiCo stake in NourishCo and transfer of rights over the "Gluco Plus/Gluco+" brand from PepsiCo. The transaction is proposed to be completed on or before 30 June 2020.
This move is consistent with the company's focus on widening its portfolio in the food and beverages space and the above acquisition would be providing an established platform to the company for further expansion in the ready-to-drink beverage segment.
Speaking on this development, Sunil D'Souza, MD & CEO, Tata Consumer Products 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. 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."
Tata Consumer Products, a subsidiary of the Tata Group, is a multinational non-alcoholic beverages company. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee.
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