Tata Consumer Products, a subsidiary of the Tata Group, may buy the vending unit of Coffee-Day Enterprises Limited. For this, the company is considering bidding non-binding. This was stated in the Bloomberg report citing sources aware of the matter.
Can be valued at $ 271 million
According to sources, the board of Tata Consumer Products has approved to explore the possibility of procuring the coffee-day vending unit operation. According to another source, Coffee-Day may valuate its vending machine business at around $ 271 million to around Rs 2,000 crore.
Coffee Day is selling property to settle debt
India’s largest coffee chain is selling its assets to settle coffee day debt. The company has to take this step after the death of Coffee Day founder VG Siddharth last year. In addition, the company has agreed to sell its corporate business park to the Blackstone Group.
Tata Consumer wants to increase business
Tata Consumer markets products such as Tata Tea, Tetley and Tata Salt. The company is considering a possible deal to expand its products. In addition, Tata Consumer has a partnership with Starbucks Corp in the country. The proposal of Tata Consumer is still in the initial stage. Coffee-Day is also in talks with other potential buyers to sell its vending business.
Coffee day in search of a strategic partner
Coffee-Day says it is looking for a strategic and financial partner as part of its business restructuring exercise. There are many talks going on in this regard, but have not reached a decisive level yet. So far this year, Tata Consumer shares have risen by 52 per cent on the BSE. At the same time, trading in Coffee Day shares is banned.