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Tata consumer products acquire Bisleri, the largest packaged drinking water industry for about 8000 crore INR

Bisleri, which has divested around three decades in the manufacture and processing of renowned soft drink brands like ThumsUp, gold Spot, Limca, and Coco cola, has finally shifted to the sale of its stakes to Tata Consumer Products Ltd (TCPL). The stakes were worth about 6000 to 7000 crore INR.

The deal mentioned that the current management would take control of the company for two years. Ramesh Chauhan, 82, ailing in the present moment, has said that he has no successors to take Bisleri to the next level of expansion. His daughter is not much interested in the business.

Bisleri has attained the position of India’s top packaged water company.

Chauhan has expressed his resentment stating that selling Bisleri was a painful decision, but he believes that the Tata Group will nurture and take care of the management better.

In addition, he has stated that he likes the Tata culture of integrities and values, which led him to sell his company while there was aggressive competition in the market.

Bisleri has been approached by several suitors, including Reliance Retail, Nestle, and Danone.
The negotiations to sell the stake of Bisleri to Tata were going on for two years. Chauhan made up his mind when he met the CEO of Tata Sons, N Chandrasekaran, and the CEO of Tata Consumer, Sunil Dsouza, a few months back.

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The first proposal was made on September 12 when Tata proposed Bisleri.

The Tata group has made Bisleri an offer to buy a stake in the biggest packaged water company in India. The three firm executives working there are already aware of the offer.

One of the three executives has revealed that the Tata group had suggested Bisleri purchase shares of the business. They even said that they would eventually increase their offer and they would partner with the biggest packaged water firm.

Given that Bisleri has established itself as a major brand over the years, the acquisition would lead Tata to a significant presence in packaged drinking water on a variety of levels.

When Chauhan was asked if he would hold minority stakes in his business, he mentioned that he did not intend to do so. He has other plans for the future. After retiring from the packaged drinking water business, he would refocus and invest in environmental and charitable causes like rainwater harvesting, recycling plastics, and providing adequate medical treatment to the poor.

In 1993, coco Cola brought the ownership of aerated drinks from Chauhan and his brother. In addition, the ownership included the soft drinks segment, which consists of Mazza, RimZim, and Citra.

What is the main intention of Tata Group behind purchasing Bisleri?

The Tata Group is inclined towards fast-moving consumer goods at present and plans to be among the top three leading manufacturers in the sector.

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The Tata Consumer division of the Tata Group is investigating strategic acquisitions. In addition to running the renowned coffee chain, Starbucks cafes already own Tetley Tea, Eight O’clock coffee, Soulful cereals, pulses, and salts. Currently, Tata is emphasizing inorganic growth, which will play a crucial role in its business plan.

Tata Group sells packaged drinking water under the brand name Himalayan tata Copper Plus water and tata gluco+.

Acquisition of Bisleri will make it to the number one spot in the packaged drinking water industry.
Chauhan mentioned that the proposal was not about money, but it was the purpose of giving the responsibility of Bisleri to an authoritative hand. It is a business that he has created with passion and now is run by employees working passionately.

Ramesh Chauhan has handed the regular responsibilities of the company to a professional team which is headed by CEO Angelo George. It has been predicted that the total turnover for the fiscal year 2023 will be 2500 crore INR with an accumulated profit of 220 crore INR.

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The year ending with the Covid-19 pandemic showed a profit of 95 crore INR.

Bisleri started as an Italian brand that established itself in Mumbai in 1965. Chauhans took over the company in 1969. As of now, the company has around 122 operational plants with a network of 5000 trucks and 4500 distributors in India and adjacent nations.

With their stakes in Bisleri, Tata will have tremendous influence over the packaged drinking water market, including the entry-level, mid-range, and premium water classes. They will have a designed market network in retail outlets around the world, including water networks, chemist stores, institutional channels, hotels, restaurants, airports, and bulk water delivery. Because Bisleri is one of the most well-known water brands in the channels.

Edited by Prakriti Arora

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