New Delhi:
Tata Group is said to have entered into talks with Bisleri International to acquire a stake in the packaged water company, according to sources.
It is at a very preliminary stage and it would be premature to say a deal is bearing fruit, said a person who was aware of the development.
The Tata Group houses its consumer activities under Tata Consumer Products Ltd (TCPL), which also sells packaged mineral water under the Himalayan brand and with brands such as Tata Copper Plus Water and Tata Gluco in the hydration segment.
The talks are allegedly initiated by the Tata group’s FMCG branch TCPL.
However, when contacted by both companies, they denied commenting on the development.
“Tata Consumer Products does not comment on market speculation,” a Tata Consumer Products spokesperson said in an email response.
A spokesman for Bisleri International also said it “does not comment on market speculation”.
According to industry observers, if the deal closes, the FMCG arm of the Tata group would play a bigger role in the fast-growing bottled water segment.
The Indian bottled water market was valued at more than $2.43 billion (about Rs 19,315 crore) in FY2021, according to a report from market research and consultancy TechSci Research.
It is expected to grow at a CAGR of 13.25 percent as a result of increasing disposable income, increasing health and hygiene awareness and increasing product innovation, the report said.
“Bottled water is gaining popularity among consumers because it is believed to be more hygienic than normal water on the market, which is not good for health and is unsafe to drink,” the report said.
Several companies including Coca-Cola India through the Kinley brand, PepsiCo’s Aquafina, Bailley by Parle Agro and Rail Neer by Indian Railway Catering and Tourism Corporation (IRCTC) compete in the segment, but all follow the market leader Bisleri.
Created after the merger of Tata Chemicals’ consumer products business with Tata Global Beverages, TCPL aims to become a formidable player in the FMCG category by expanding its position into the existing category and entering new territories.
In its latest annual report, TCPL said: “With strong product innovation, investments in strengthening our brands and strategic acquisitions, we are well on our way to becoming a leading FMCG company”.
Ramesh J Chauhan led Bisleri International operating in the Bisleri branded bottled water and Vedica spring water segment.
It is also present in carbonated drinks with brands – Spyci, Limonata, Fonzo and PinaColada.
Chauhan has also created several super brands such as ThumsUp, Gold Spot, Maaza and Limca, which were acquired by the Coca-Cola Company in 1993 when the Atlanta-based company re-entered the Indian market.