Tata Consumer Products to Acquire Bisleri in ₹7000 Crore Deal


Tata Consumer Products Ltd (TCPL) a company of Tata Group is set to acquire Bisleri International at an approximate price of ₹7000 crores, according to a report.

Further details of this prestigious buyout were not available immediately from either Bisleri or TCPL. The brief indications on their plans were cited by Ramesh Chauhan, Chairman, Bisleri International.

Tata Consumer Products Ltd (TCPL) covers the entire consumer goods of the Tata Group, which also sells packaged mineral water by the brand name Himalayan, Tata Copper Plus Water, Tata Fruski, and Tata Gluco in the hydration segment respectively. TCPL is an Indian fast-moving consumer goods (FMCG) company, founded in 1962 in Kolkata, is the world’s largest manufacturer of tea and a major producer of coffee. Its tea products include Tata Tea, Tetley, Good Earth, Teapigs, Vitax, and Joekels. The Coffee basket of TCPL is equipped with Eight O Clock, Tata Coffee Ground, The Coffee basket of TCPL is equipped with Eight O Clock, Tata Coffee Grand, Sonnets by Tata Coffee, Tata Coffee Gold, Tata Coffee Quick Filter, and Tata Coffee Cold Coffee respectively.

Bisleri International established in 1984 by Jayantilal Chauhan is headquartered in Mumbai. India’s largest bottled water manufacturer and supplier, Bisleri is well-known for its quality with 122 operational plants, and a strong network of 4500 distributors through a well-coordinated fleet of 5000 distribution trucks.

According to industry observers, if the deal is finalized, it would provide the Tata group FMCG arm a bigger grasp of the fast-growing bottled water segment.

The Indian bottled water market was valued at over USD 2.43 billion (around ₹19,315 crores) in FY2021, said a report from recent market research. It is expected to grow at a CAGR of 13.25 percent due to several influencing and supporting factors like increasing product innovation, rising awareness in health and hygiene, and increasing disposable income.

Stock keeping units (SKU) In India, has seen that bottled water is sold in four main types of SKUs basically bottles of — one-litre, two-litre, 500-milliliter, 250 millilitre, small pouches, and barrels of 15-20 litres. From these, the one-litre bottles have acquired the highest market preference at 42%.

The bottled water industry has several players including Coca-Cola India Pvt Ltd, Dhariwal Industries Pvt Ltd, Indian Railway Catering and Tourism Corporation, Narang Group, Nestle Group, Parle Agro Pvt Ltd, Pepsico Inc, United Breweries Ltd apart from hundreds of other local brands in the market. The rise in population, growth in per capita income, and the increasing awareness of clean and safe drinking water have triggered a steady rise in demand for bottled water in packaged drinking and mineral water requirements. Moreover, the working population, tourists and travelers, and corporates prefer bottled water over tap water, for its easy availability, clean handling, and quick disposal.

The report said, “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.”

Tata Consumer was the top gainer among Nifty50 stocks today, rising over 2.5% in early trade. Numerous players like Bailley of Parle Agro, Rail Neer from IRCTC, Kinley from Coca-Cola India, Aquafina of PepsiCo India stand in the competition in the bottled water segment however follows Bisleri International, which leads by a large margin.

TCPL, formed after the amalgamation of the consumer products business of Tata Global Beverages with Tata Chemicals, aims to be a strong contender in the FMCG category, by accelerating its role in the existing category and expanding into newer business domains.