Coca Cola is reportedly in talks to acquire a major stake in Indian chain Café Coffee Day.

The beverage company is seeking to establish its presence in the country’s café segment. It is claimed that the company wishes to strengthen its footprint in other industries worldwide to mitigate the risks arising in its core carbonated beverage business. This is in relation to a global movement towards low-sugar drinks that is putting pressure on high-sugar soft drinks manufacturers.

The Economic Times reported that the acquisition is being driven by Coca-Cola, and its global team is engaged in active talks with Café Coffee Day’s management.

The deal is expected to allow Coca-Cola to scale-up its business in the Indian café sector, but talks are currently in early stages.

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A Coca-Cola spokesperson said: “This news is absolutely speculative in nature and as a matter of company policy, we do not have any comments to offer at this point in time.”

Established in 1996 by VG Siddhartha, Café Coffee Day is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises.

With 1,750 outlets, the Indian chain has been competing with some of the global coffee companies, including Starbucks, Costa Coffee and chains such as Barista.

Over the past two years, the chain is said to have slowed down its expansion due to increasing debt and competition from other coffee chains.

Café Coffee Day operates in India, Vienna, the Czech Republic, Malaysia, Nepal and Egypt.

Last September, The Coca-Cola Company reached a definitive agreement to acquire UK-based coffee company Costa from its parent company Whitbread for £3.9bn ($5.1bn).