Tata Tea Ltd has signed a memorandum of understanding (MoU) with global beverages major PepsoCo Inc to explore the possibility of forming a joint venture for the production and distribution of non-carbonated ready-to-drink beverages, focused on health and enhanced wellness.
"The board of Tata Tea Ltd today approved a non-binding memorandum of understanding with PepsiCo Inc, 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," Tata Tea said in a regulatory filing.
Tata Tea said the two companies would finalise definitive agreements for the joint venture over the next few months.
The proposed joint venture will not be in conflict with any existing arrangements of either parties and the transaction will be subject to corporate and statutory approvals as may be required, the release said.
Tata Tea has a 100 per cent export-oriented unit manufacturing instant tea in Munnar, Kerala, which is the largest such facility outside the United States. The unit uses a unique process developed in-house for extraction from tea leaves, giving it a distinctive liquoring and taste profile.
Instant tea is used for light density 100 per cent teas, iced tea mixes and in the preparation of ready-to- drink (RTD) beverages. The Munnar unit is KOSHER and HACCP certified, according to information available on the company's web site.