In order to spice up the portfolio of Tata Global Beverages Limited, Tata Group has approached its key shareholders of Hector Beverages with a proposal to buy out the company along with its popular brand Paper Boat.
According to the news reported by The Economic Times, the talks around Paper Boat are still at an initial stage and there is no guarantee yet that it will lead to a transaction.
Tata Sons Chairman N Chandrasekaran is keen to move beyond its tea, coffee and water offerings and add fizz to the group company, to become food and beverage powerhouse like Pepsico or Nestle.
"Paper Boat is one brand that they are keen on as it already has created a significant brand equity," said one of the official on the condition of anonymity to the newspaper.
Hector Beverages, founded in 2010 by former Coca Cola executives Neeraj Kakkar and Neeraj Biyani, has successfully commercialised Indian ethnic drinks like aamras, jaljeera and aam panna and created a niche for Paper Boat in the country.
When the newspaper approached Hector, the top officials denied the information the paper received. "We are strongly committed to building a long-term, sustainable and most importantly an independent business... There has never been any discussion with Tata Global Beverages or anybody else for that matter regarding a strategic investment or sell-out," the Hector Beverages official told the paper.
The dairy segment has also been identified as a possible segment for expansion and appointments at TGBL has been made to steer such initiatives. Similarly beverages and healthy ethnic snacks have been identified as another area of growth from TGBL.
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