In an effort to expand its F&B portfolio, Tata Consumer Products will be acquiring PepsiCo's stake in NourishCo Beverages. NourishCo is a 50:50 JV between the two companies.

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As per the deal contours, Tata Consumer is set "to acquire entire stake of PepsiCo in NourishCo and transfer of rights over the "Gluco Plus/Gluco+” brand from PepsiCo," said the company in a statement to the exchanges.

NourishCo has brands like Himalayan mineral water, Tata Gluco Plus and Tata Water Plus in its portfolio.

The total cost of acquisition is Rs 29 crores for the shares and the “Gluco Plus/Gluco +” brand. The transaction is proposed to be completed on or before June 30, 2020, said Tata Consumer in a press statement.

The deal witll help Tata Consumer to use its resources and capabilities to grow its value added liquid refreshment portfolio. The turnover of NourishCo was Rs 181 crore in FY 2019-20.

In May 2019, Tata group had announced consolidation of all its consumer products businesses with branded food business of Tata Chemicals. Over the last few months, Tata Global Beverages and PepsiCo had been working on revising the terms of the agreement with respect to NourishCo to accommodate individual business expansion plans.

First Published:May 18, 2020 6:39 PM IST