Hector Beverages was founded by former Coca-Cola executives Neeraj Kakkar and Neeraj Biyani in 2010.
Tata Global Beverages (TGBL) is believed to have approached prominent shareholders of Hector Beverages with the proposal to buy out the firm and its popular brand Paper Boat, sources told The Economic Times.
"Paper Boat is one brand that they are keen on as it has already created a significant brand equity," sources told the newspaper.
Despite formally approaching the firm, the talks around acquiring Paper Boat are still at an exploratory stage. There is no guarantee yet that it will lead to a transaction. Hector Beverages was founded by former Coca-Cola executives Neeraj Kakkar and Neeraj Biyani in 2010. Their brand Paper Boat sells Indian ethnic drinks such as aamras, jaljeera and aam panna.
Tata Sons Chairman N Chandrasekaran is keen to expand the entity's beverages portfolio and wants the group firm to move beyond tea, coffee and water offerings and challenge PepsiCo or Nestle, sources said. Tata is looking at the dairy segment for their expansion plans.
When the newspaper approached Hector, the top officials denied the information the paper received. "We are strongly committed to building a long-term, sustainable — and most importantly — an independent business... There has never been any discussion with Tata Global Beverages or anybody else for that matter regarding a strategic investment or sell-out," the Hector Beverages official told the paper.