InvestorQ : Is it true that Tata Consumer s planning to buy out Coffee Day Enterprises businesses?
indhumathi Sayani made post

Is it true that Tata Consumer s planning to buy out Coffee Day Enterprises businesses?

Answer
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1 month ago


Let me clarify, Tata Consumer is not interested in Coffee Day as a whole. It is just weighing a bid for the vending machine business of Coffee Day Enterprises. The Tata Consumer board has already approved the proposal and Coffee Day is seeking a valuation of Rs.2000 crore.

The key business properties of Tata Consumer include Tata Tea, Tetley and Tata Salt. It is looking at the vending machine business of Coffee Day Enterprises as a ready market for its products and also as a marketing strategy. Tatas also have a JV with Starbucks.

Coffee Day had gotten into a deep financial crunch after its promoter V G Siddhartha had committed suicide under a massive debt burden. Coffee Day is looking to induct strategic and financial partners and the likes of Blackstone are already on-boarded.