ITC may be competing with Coca-Cola Co, which has approached India's greatest cafe chain but has not made a formal offer.
Mumbai: Aisa’s largest cigarette maker, ITC is in a race to purchase a stake in Coffee day Enterprises Ltd, as it seeks to diversify away from tobacco items, as per the report in Bloomberg.
According to sources, ITC may be competing with Coca-Cola Co, which has approached India's greatest cafe chain but has not made a formal offer.
The manufacturer of Gold Flake and Classic cigarettes has been given access to Coffee Day's resources and financial information for due perseverance, said the people.
As Indian government increased taxes on tobacco products a successful deal will help ITC to be less dependent on cigarettes.
After the death of Coffee Day founder VG Siddhartha the company is under pressure to pare borrowings.
The consolidated borrowings of Coffee Day Enterprises stood at Rs 6,547.38 crore as of on March 31.
Cafe chain Coffee Day Enterprises Ltd's liabilities doubling to over Rs 5,200 crore and his unlisted ventures in the realty and hospitality sectors having similar levels of debt.