The board of Tata Consumer Products has approved a proposal to evaluate the buyout, and is planning a non-binding bid, according to a Bloomberg report.
CDEL, which owns the Cafe Coffee day chain, is asking for a $271 million valuation for the vending machine business, sources told the news agency.
Moneycontrol could not independently verify the story.
Coffee Day is looking to induct strategic and financial partners into businesses as part of an ongoing reconstructing exercise, a representative told Bloomberg. A representative for Tata Consumer had not yet responded to a request for comment.