Beverage major Coca-Cola is in discussions to pick up a significant stake in homegrown coffee chain Café Coffee Day (CCD) as the former looks to expand footprints in cafés space and restrict risks linked with its carbonated drinks business, The Economic Times reported, citing two people aware of the development.

The talks, which are led by Coca-Cola's global team, are in the early stages, said the ET sources, adding that if the deal materialises, it will give the firm a significant scale in the fast-growing café business.

“The potential stake acquisition is being driven by Coca-Cola’s headquarters in Atlanta, and officials from the beverage maker’s global team are engaged in active talks with the Coffee Day management. It would give Coca-Cola a significant scale in the fast-growing café business, compared to soft drinks,” one of the sources was quoted as saying in the report.

However, when approached by the paper, a Coca-Cola spokesperson termed the news as "absolutely speculative".

Café Coffee Day (CCD) is a widespread coffee chain of India, promoted by VG Siddhartha, owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises.

CCD, however, has slowed down its expansion in the last two years as it faces tough competition from other coffee and tea cafés such as Starbucks, Chaayos, among others.