Tata Global Beverages Ltd said late on Thursday its board has approved forming a 50:50 joint venture (JV) with Pepsico India Holding Pvt Ltd in the non-carbonated, ready-to-drink beverage segment.
The mandate of the JV is to develop its business internationally, the firm said in a statement from its Mumbai headquarters.
"The board has approved the signing of a 50:50 joint venture with PepsiCo India Holdings 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 will enter into a brand licensing and a manufacturing agreement for its 'Himalayan' brand of natural mineral water with the new joint venture company.
"The JV company would undertake the marketing sales and distribution of Himalayan in due course," it said, adding that it would be subject to terms and conditions agreed amongst the parties.
In April this year, the two 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.