"The Board has approved the signing of a 50:50 Joint Venture with PepsiCo India Holdings Private Limited in the area of non-carbonated ready to drink beverages focused on health and enhanced wellness," Tata Global Beverages said in a statement.
The company's board of directors has given approval to enter into a brand licensing and a manufacturing agreement for its Himalayan brand of natural mineral with the new joint venture company.
"The JV company would undertake the marketing sales and distribution of 'Himalayan' in due course," it said, however, adding that it would be subject to terms and conditions agreed amongst the parties.
The company said the mandate for the joint venture was to develop business internationally. In April this year, both the companies had signed a Memorandum of Understanding for forming a joint venture to cater to the non-carbonated ready-to-drink beverages segment and focused on health and enhanced wellness.
The parties had agreed that the proposed joint venture will not conflict with any existing arrangements of either party. The two companies had, however, did not announce details of the structure of the joint venture.
Later, in July Pepsico had announced a top management reshuffle with its erstwhile Executive Director (Marketing), Punita Lal being moved to head the joint venture. Tata Global Beverages also said its board also approved acquiring ten per cent stake by the company’s overseas subsidiary in Activate, a performance beverage and bottled water company in the United States.
"The subsidiary has an option to increase its stake in this company (Activate)," the statement said.