According to Ramesh Chauhan, chairman of Bisleri International, Tata Consumer Products Ltd. would purchase the company for up to 7000 crores, the Economic Times newspaper said on Thursday. Requests for comment from Reuters were not answered by Bisleri or Tata Consumer Products. Tata Consumer led all Nifty50 gainers today, climbing more than 2.5% in early trade.
Tata Consumer Products Ltd. (TCPL), which also distributes packaged mineral water under the brand Himalayan and with trademarks like Tata Copper Plus Water and Tata Gluco in the hydration market, is where the Tata Group’s consumer business is housed.
Industry watchers claim that should the transaction go through, it would provide the FMCG part of the Tata group a bigger opportunity to compete in the quickly expanding bottled water market.
According to a report by market research and consulting TechSci Research, the Indian bottled water industry was valued at over USD 2.43 billion (about 19,315 crores) in FY2021.
According to the research, it is anticipated to develop at a CAGR of 13.25 percent due to increased disposable income, rising health and hygiene awareness, and rising product innovation.
“Bottled water is gaining popularity among consumers because it is thought to be more hygienic than loose normal water in the market, which is not good for health and is unsafe to drink,” the report said.
The category is contested by a number of businesses, including Coca-Cola India through its brand Kinley, PepsiCo’s Aquafina, Bailley from Parle Agro, and Rail Neer from the Indian Railway Catering and Tourism Corporation (IRCTC), however, they are all lagging behind Bisleri, the market leader.
By extending its presence in the current category and forging new ground, TCPL, which was established by the merger of Tata Chemicals’ consumer goods division and Tata Global Beverages, aims to be a powerful competitor in the FMCG sector.
In its latest annual report, TCPL said “with strong product innovation, investment in strengthening our brands, and strategic acquisitions, we are well on track in our journey to become a leading FMCG company”.
With the bottled water brand Bisleri and the spring water Vedica, Bisleri International, managed by Ramesh J Chauhan, competes in the market.
It may also be found in sparkling beverages under the labels Spyci, Limonata, Fonzo, and PinaColada.
The Coca-Cola Company purchased Limca in 1993 when it reentered the Indian market, and Chauhan has also developed a number of super brands, including ThumsUp, Gold Spot, Maaza, and Limca.
