NourishCo, the 50:50 joint venture between Tata Global Beverages and PepsiCo India aims to achieve an annual revenue of Rs 700 crore in five years by expanding its health products portfolio. The company is also introducing its ‘health’ concept in packaged drinking water, aiming at a significant share of the Rs 3,000-crore market.

The JV on Thursday launched Tata Water Plus, a fortified drinking water, in the Tamil Nadu market. This will add to NourishCo’s existing products — Tata Gluco Plus and Himalayan Natural Mineral.

After the launch in Andhra Pradesh, Tata Water Plus will be made available nationally in six to seven months. “NourishCo will add several health-focused products to its portfolio in the future and the company looks at a turnover of Rs 700 crore in five years,” said RK Krishna Kumar, vice-chairman, Tata Global Beverages. Even in the drinking water category, NourishCo wants to straddle across segments with different delivery formats.

While Himalayan Natural Mineral water comes under the top-end pristine source water segment and is priced at Rs 40 per litre, the fortified Tata Water Plus is priced Rs 16 for 750 ml. It competes with the large number of brands present in the mid-segment of the category. Mid segment constitutes a major chunk of the packaged water market. The source water segment is valued around Rs 100-crore and there are several unorganised and local brands in the bulk and pouch segments at the bottom.

“Packaged drinking water is available in India for the past 15 years and in the past few years it has been growing year-on-year at a rate of 20 to 25 per cent without fail,” said Pradeep Poddar, global head, water and functional beverages, Tata Global Beverages.

NourishCo is outsourcing the production to exclusive contract manufacturers and using the vast distribution network of PepsiCo for its products. In Tamil Nadu itself, PepsiCo’s distribution network includes 42,000 outlets, said Ashok Namboodiri, chief, marketing and slaes, NourishCo Beverages.