Tata Tea, PepsiCo to sign MOU on JV

Tata board has approved of a Memorandum of Understanding (MOU) with PepsiCo to enter into a proposed joint venture (JV) agreement that is expected to take a few months.

The JV will cover liquid beverages, particularly in the enhanced wellness area (excluding carbonated soft drinks, ambient temperature tea and Pepsi's range of food categories).

PepsiCo is the largest food and beverage business in India and, at close to $60billion, it is the second largest food and beverage business in the world, said Tata Tea vice chairman R.K. Krishna Kumar.

“This development will open a new avenue for Tata Tea's initiatives for launching new liquid beverage products. From our side it reinforces the need for investing in research and development to meet the nutritional and hydration requirements of various segments of the Indian and global markets.”