Tata Consumer Products plans to bid for Coffee Day's vending business

Topics Tata group | Coffee Day

The potential deal comes as Tata Consumer, whose products include Tata Tea, Tetley and Tata Salt, is seeking to expand its presence
Tata Consumer Products Ltd. is weighing a non-binding bid for the vending machine business of Coffee Day Enterprises Ltd., according to people familiar with the matter.


The board of Tata Consumer Products has approved a proposal to explore an acquisition of the operation from Coffee Day, said one of the people, who asked not to be identified as the information is private. Coffee Day is seeking a valuation of about 20 billion rupees ($271 million) for the vending machine business, another person said.


Coffee Day, the owner of India’s largest coffee chain, has been trying to sell assets to repay lenders after the death of its founder V G Siddhartha last year. It had agreed to sell its corporate business park to Blackstone Group Inc.


The potential deal comes as Tata Consumer, whose products include Tata Tea, Tetley and Tata Salt, is seeking to expand its presence in the world’s second-most populous country. It also has a joint venture with Starbucks Corp. in India.


Deliberations are at an early stage and Tata Consumer could still decide against an offer, the people said. Coffee Day is also in talks with other potential suitors for the vending business, one of the people said.


Coffee Day is looking to induct strategic and financial partners into businesses as part of an ongoing reconstructing exercise, its representative said in an emailed response to Bloomberg News. There are several ongoing discussions but none of them have reached any conclusive stage, the representative added.


 A representative for Tata Consumer didn’t immediately respond to requests for comment

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel