Coffee Day has held talks with Tata Consumer Products and Jubilant Foodworks in recent weeks for the sale of its vending business, sources told CNBC-TV18.
The discussions are still in early stages and Coffee Day has not received any bids so far from Tata or Jubilant, added the sources, who did not want to be named.
Coffee Day is seeking Rs 2000 crore for the vending business, which had nearly 60,000 machines as of the September quarter of FY20.
“As disclosed earlier, Coffee Day Enterprises Ltd is looking to induct strategic and financial partners into multiple businesses as part of an ongoing restructuring exercise. To this end, there are several ongoing discussions. None of these conversations have reached any conclusive stage, and it would be factually incorrect to speculate anything to the contrary,” a spokesperson of Coffee Day Enterprises Ltd said in a statement.
Later, the company in a filing to stock exchanges said ,”there is no such negotiations or events taken place (sic).”
A spokesperson of Tata Consumer Products said: “The Company evaluates various opportunities on an ongoing basis. As a policy, we do not comment on speculative information.”
Jubilant Foodworks hasn’t yet responded to CNBC-TV 18’s queries.
The Coffee Day group has been working to sell stake in several businesses and investments to pare down its debt.
After a stake sale in Mindtree last year and the sale of the Global Village Tech Park to Blackstone, the group’s debt now stands at Rs 3,200 crore.
Coffee Day has held discussions with multiple players, both global and domestic, since early last year, initiated by founder VG Siddartha before his death in July 2019.
CNBC-TV18 had reported in November last year that Coffee Day has signed NDAs with over 30 players, including Oyo, Coca Cola, ITC and PE players such as KKR and TPG.
The talks, however, have not progressed, sources indicated.
Update: The copy has been updated with Cafe Cofee Day’s statement to the stock exchanges.