Share price of Tata Consumer rose over 4 percent intraday on May 19 after the company said it would acquire PepsiCo's stake in NourishCo Beverages Limited. Tata Consumer share price rose up to 4.61% to Rs 362.9 compared to the previous close of Rs 346.90 on BSE. Tata Consumer stock has gained after 2 days of consecutive fall.
The stock opened with a gain of 2.05% today. Tata Consumer stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 52.12% in last one year and risen 11.50% since the beginning of this year. NourishCo Beverages Limited is 50:50 joint venture between the two companies. The move is consistent with Tata Consumer's focus on widening its portfolio in the food and beverages space.
Sunil D'Souza, MD & CEO at Tata Consumer Products said, "This decision has been made after extensive deliberation between the JV partners and we feel this will bring in greater focus to the NourishCo Business. The liquid beverages category has exciting growth potential and this move will help us strengthen and widen our presence in it. Over the years, NourishCo has built a capable team and a network of distributors, co packers and vendors. We will look to scale up these capabilities further and build a differentiated position in this segment."
The deal will enable Tata Consumer to use its resources and capabilities to grow its value added liquid refreshment portfolio. The turnover of NourishCo was Rs 181 crore in FY 2019-20.