Tata Global Beverages wants to buy out Paper Boat to expand their portfolio

Tata Global Beverages Limited (TGBL) has approached Hector Beverages with a proposal to buy out their firm along with its popular drinks brand, Paper Boat. According to reports, Tatas are keen on Paper Boat to spice up their portfolio and move beyond their tea, coffee and water range. The process is still at a nascent stage with no guarantee on how it will unfold.

Hector Beverages was founded in 2010 by Coca Cola executives, Neeraj Kakkar and Neeraj Biyani. Their efforts to commercialise Indian drinks such as aam panna and jal jeera and promote them instead of fizzy drinks that are widely available, along with the unique packaging led to the popularity and distinct identity of Paper Boat. According to a report in The Economic Times, an official who wishes to remain anonymous said, "Paper Boat is one brand that they are keen on as it already has created a significant brand equity."

Kakkar, however told the newspaper that there have been no discussion with TGBL or anybody else and they are, in fact, dedicated to building a long-term, sustainable and independent business. Tata Group spokesperson has declined to comment.

The FMCG company has as many as 5 early stage investors including NR Narayana Murthy's Catamaran Investment, who along with Sequoia Capital and China's Hill House Capital put Rs 300 crore into the company.

As of now, 85 per cent of the company's business comes from the top six cities but the company has now tied up with Indo Nissan to take the beverage across to smaller cities. The company is still making losses and is hoping to rake in Rs 120 crore in