The Tata group’s bid to acquire a majority stake in packaged water brand Bisleri has reportedly got stuck over valuation.
A Bloomberg report on Wednesday said the negotiations have hit a roadblock as the two parties failed to arrive at a consensus on pricing, with the Chauhans of Bisleri demanding $1 billion. The Tatas were in advanced discussions for Bisleri, and the negotiations could still resume even as other buyers may emerge for the brand, the report said.
News of the negotiations surfaced in September: Bisleri’s Ramesh Chauhan had then confirmed he was looking for a buyer as his daughter Jayanti was not interested in the business. The reports said the $128 billion Tata group had initiated talks with Bisleri International to acquire a stake in the packaged water business.
Tata Consumer Products Ltd also said in a regulatory filing that the management was discussing with various parties, including Bisleri International Pvt Ltd, as it evaluates various strategic opportunities for the growth and expansion of its business on an ongoing basis.
TCPL is already present in the bottled water segment with its brand Himalayan and in the hydration market with Tata Copper Plus Water and Tata Gluco+.
Chauhan had sold his soft drinks business to Coca-Cola in 1993. He transferred brands such as Thums Up, Gold Spot, Citra, Maaza and Limca to the Atlanta-based soft drinks behemoth. He kept the Bisleri brand to himself. Thums Up has now become a billion-dollar brand; Coca-Cola expects fruit drinks brand Maaza to hit the billion-dollar mark by 2024.
The packaged water business is extremely competitive in India with a large unorganised sector fighting with brands such as Coca-Cola’s Kinley, PepsiCo’s Aquafina and IRCTC’s Rail Neer.
The Indian bottled water market was valued at over $2.43 billion in 2020-21 by market research firm TechSci Research. It is forecast to grow at a compounded annual growth rate (CAGR) of 13.25 per cent riding on increasing disposable income, growing health and hygiene awareness and increasing product innovation. Shares of Tata Consumer Products on Wednesday ended largely flat at Rs 715.20 in the BSE.
