Tata Tea, part of the Ratan Tata-led business conglomerate, announced a preliminary agreement with global beverage major PepsiCo for exploring a joint venture in the non-carbonated beverage business.

"The Board of Tata Tea [ Get Quote ] Limited approved a non-binding Memorandum of Understanding with PepsiCo Inc on Friday, with the intention of exploring the formation of a joint venture in the area of non-carbonated ready-to-drink beverages, focused on health and enhanced wellness," Tata Tea said in a regulatory filing with the Bombay Stock Exchange.

The company said that definitive agreements for the proposed JV could be finalised over the next few months.