New Delhi: In a huge business deal, Tata Consumer Products and PepsiCo have collaborated to manufacture and sell packaged snacks. Both the companies will soon launch the products in the snacks market under one brand. Under the new partnership, PepsiCo’s Kurkure brand and Tata Consumer’s Ching’s Secret brand will work together.
This partnership will not be a joint venture but a kind of collaboration. Both the companies have decided that initially they will make only packaged snacks, however, if the response is good from the market, the firms are expected to expand their partnership for their other products also.
In the packaged snack segment, PepsiCo India sells brands like Kurkure, Lay’s Chips, Doritos Nachos. In 2024, Tata Consumer Products had bought Capital Foods for Rs 5,100 crore, which makes brands like Ching’s Secret and Smith & Jones.
It may be noted that the packaged snacks industry is growing rapidly in the country. According to a Economic Times report, the Indian snacks market is likely to reach Rs 95,521.8 crore by 2032. The domestic market of local and direct-to-consumer brands is witnessing a rapid increase, due to which competition is also being seen in this market. Experts say that due to the partnership between the two companies, competition in this segment may increase further.
PepsiCo is also in talks to buy a stake in the country’s leading snack food company Haldiram’s. According to reports, PepsiCo can buy a minority stake in the domestic brand. Haldiram’s recorded a revenue of Rs 12,800 crore in FY24. The company manufactures and distributes 500 types of snacks, namkeen, sweets, ready-to-eat and pre-mixed foods.
In 2010, Tata and PepsiCo had formed a joint venture for a beverage brand Norishco, in which both the companies had a 50-50 stake. However, in 2020, Tata acquired the entire stake in this brand from PepsiCo.
Tata Consumer Products and PepsiCo have formed a strategic collaboration to manufacture and sell packaged snacks in India, combining the strengths of Kurkure and Ching’s Secret brands. This partnership, not a joint venture, initially focuses on snacks but may expand to other product categories. The move comes amidst a rapidly growing Indian snack market predicted to reach significant size by 2032, intensifying competition. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
