Companies

Tata Tea, PepsiCo to form health drink JV

Tata Tea, a Tata Group company, and leading global beverage firm PepsiCo on Friday said they would explore the possibility of forming a joint venture company to manufacturer health drinks.

“We are pleased to announce that PepsiCo and Tata Tea Limited have today signed a non-binding memorandum of understanding, with the intention of exploring the formation of a joint venture in the area of non-carbonated ready-to-drink beverages, focused on health and enhanced wellness,” a joint statement by the two companies said.

Stating that the definitive agreement for the joint venture was expected to be done over the next few months, the statement further said: “The transaction will be subject to corporate and statutory approvals as may be required. The proposed joint venture is not intended to conflict with any existing arrangements of either party.”

Currently India’s energy drink market is worth over Rs.500 crore which is expected double by the end of this year. On the other hand, the carbonated drinks market is valued at over Rs.6,000 crore, but its growth rate is much slower compared to non-carbonated drink market. While the energy drinks market has grown at a rate of about 50 per cent in the country over the past five-six years, the growth rate for the carbonated space is just about one per cent.

Tata Tea is a leading player in the global beverages market with presence in over 40 countries. Besides tea brands, Tata Tea also has natural mineral water brand Himalayan and 'T!ON' energy drink made from fruit juice, tea extracts and ginseng. While $60 billion PepsiCo, is market leader with its portfolio of health and wellness drinks under the brand Tropicana, Nimbooz and Gatorade.


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Printable version | Dec 4, 2021 7:27:14 AM | https://www.thehindu.com/business/companies/Tata-Tea-PepsiCo-to-form-health-drink-JV/article16365228.ece

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