In a regulatory filing with the Bombay Stock Exchange (BSE), Tata Tea said, “The Board of Tata Tea Limited approved a non-binding Memorandum of Understanding with PepsiCo Inc today, 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."
Informing that the a definitive agreement to set up the joint venture could be expected in coming months, the Ratan Tata-led business conglomerate added, “The proposed joint venture is not intended to conflict with any existing arrangements of the parties. The transaction will be subject to corporate and statutory approvals as may be required."
More information on the joint venture will be disclosed once the companies strike a definitive agreement, the company said.
A joint venture with a global beverage giant like PepsiCo will help Tata Tea to immensely bolster its brand beyond the market it enjoys currently.