Tata Consumer Products is Likely to Acquire India's Largest Packaged Water Company, Bisleri International

Tata Group is Set to Acquire Bisleri, India's Largest Packaged Water Company. Ramesh Chauhan, the Chairman at Bisleri, Comments that He Liked the Tata Group.
Tata Group has been in talks with Bisleri for two years, and Ramesh Chauhan, the chairman at Bisleri, came to a conclusion after meeting N Chandrasekaran, the Tata Sons chairman and Sunil D’Souza, Tata Consumer CEO, a few months ago. The 82-year-old commented that he likes them and that they are good guys, further stating that he doesn’t see the logic of keeping a minority stake.

Ramesh J Chauhan, the 82-year-old, has announced that he will be selling his packaged water company Bisleri to Tata Consumer Products Ltd (TCPL) for roughly INR 6,000-7,000 crore; this comes around thirty years later since he sold soft drink brands Gold Spot, Thums Up, and Limca to Coca-Cola. Ramesh J Chauhan’s daughter, Jayanti, does not have any interest in the business, hence he doesn't have a successor.

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As a part of the deal, the company's present management at India's largest packaged water company will persist for two years. The company's octogenarian chairman has suffered from health issues recently and hasn't been keeping too well.

No Minority Stake for Chauhan

Chauhan said that the decision to sell Bisleri was a painful one, but he believes that the company will be nurtured and taken care of even better by the Tata Group. He stated that he likes the integrity and values culture of Tata, and therefore he made his mind up in spite of facing fierce interest shown by other potential buyers.

Chauhan went on to claim that the deal was not about money and does not even know what he would do with the sum but wanted to make it clear that the price was not just the value he got for the company, but he was more anxious to look for a home that would take care of the company as he did. This business was built by him with passion and will now be run by just as passionate employees.

When asked about keeping a minority stake in the company, the chairman said he did not grasp the logic behind doing so and stated what he could do with it when he was not the one running the show. Following the deal of selling his packaged water company, Chauhan wants to focus on investing in environmental and charitable causes such as plastic recycling, water harvesting, and assisting the needy get medical treatment.

Company History

In the meantime, Ramesh J Chauhan, and his brother sold the entire portfolio of soft drinks to Coca-Cola in 1993. Aside from Gold Spot, Thums Up, and Limca, the portfolio also incorporated RimZim, Citra, and Maaza. Tata Consumer has a contentious approach in the fast-moving consumer goods (FMCG) space and aims to become among the top three in the sector. It also sells packaged mineral water under the brand Himalayan along with Tata Gluco+ and Tata Copper Plus Water.

According to Chauhan, the 82-year-old gave the day-to-day management responsibilities at Bisleri to a professional team run by CEO Angelo George. For FY23, the Bisleri brand's turnover was calculated at INR 2,500 crore with a profit margin of INR 220 crore.

The packaged water company came to India in Mumbai in 1965 and was originally an Italian brand. After four years, in 1969, it was acquired by the Chauhans.

Tata Consumer Products Ltd (TCPL)

The Tata Group includes its consumer business under Tata Consumer Products Ltd (TCPL), which also deals with packaged mineral water under Himalayan as the brand name, as well as with brands in the hydration segment like Tata Gluco and Tata Copper Plus Water.

As per the market experts, the deal could provide the Tata group FMCG arm a significant opportunity in the rapidly advancing bottled water segment, which is gaining popularity due to consumer preference for more hygienic water.

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This article by Procurement Resource covers news about the latest acquisition where Tata Consumer Products will take over Bisleri. The deal has been in talks for over two years and was finalised after Ramesh Chauhan, the chairman at Bisleri, met N. Chandrasekaran, the Tata Sons chairman and Sunil D'Souza. The deal was settled for roughly INR 6,000-7,000 crore, and Ramesh Chauhan will not hold any minority stake in the company.

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