Will Tata Group purchase a stake in Bisleri International? Latest News of 2022
If Tata purchases stakes in Bisleri, it will give them massive power in the packaged drinking water across the entry-level, mid-range, and premium packaged water class, followed by a ready-go-to-market network in the retail stores of various parts of the world, including the water networks, chemist stores, institutional channels, including hotels, restaurants, and airports followed by bulk water delivery. It is because Bisleri is a leading water brand in the channels.
The Tata group has made an offer to Bisleri to acquire a stake in India’s largest packaged water company. The offer has already known by the three executives working for the company.
One of the three executives has opened up and talked about the offer mentioning that the Tata group has proposed Bisleri buy stakes in the company. They have even proposed that they would increase their proposition eventually and are keen on joining hands with the largest packaged water company.
The purchase would give Tata an enormous foothold in the packaged drinking water across various levels as Bisleri has come out to be a leading brand over the years.
The Tata Group’s Tata Consumer business is currently exploring strategic acquisitions. They already own Tetley Tea, Eight O’clock coffee, Soulful cereals, pulses, and salts, besides being an operator of the famous coffee chain, Starbucks cafes.
Tata is currently focussing on inorganic growth, which would contribute a significant part of its growth strategy.
Moreover, Sunil D’Souza, the chief executive, has said that the Tata Group already has its own bottled water business under NourishCo. But that can be regarded as a niche business.
The Tata group is planning to acquire a stake in the profitable businesses through Tata consumers or at a group level.
How successful is Bisleri International Company in India?
Bisleri has more than 150 manufacturing plants in the country and over 4,000 distributors with 5000 trucks operating in India. The data has been sourced from its website. In addition to being a distributor of packaged mineral water, Bisleri is also a leading distributor of premium Vedica Himalayan spring water.
Apart from that, it also deals in several carbonated drinks, including Limonata, Spyci, and soda and fruit drinks, followed by owning a small business of hand purifiers.
In addition, Bisleri runs its application under the name Bisleri@Doorstep to deliver products directly to consumers.
The management has revealed that they have a goal to reach 5000 crore INR within four years and are currently working ahead of their plans. Bisleri has tough competitors in the market, including Coco Cola’s Kinley and Pepsi Co’s Aquafina, which have a share of at least 32 percent in the organized market.
Data has speculated that packaged water remains an intensely competitive market, with unorganized brands having large dominance in the sector.
Ramesh Chauhan, the owner of Bisleri international, has stated if the company sells a stake, it would be sold to an Indian who would help to promote and develop the brand.
Bisleri has been a legacy company and has received proposals from various companies, including Reliance Retail, which is aggressively acing its game across various categories like food, beverages, and several other personal care brands with the help of purchasing stakes from the respective companies.
Reliance’s attempt to purchase stakes in Bisleri International did not materialize, although the company has shown high interest in acquiring a part of it.
Chauhan had shown keen interest in collaborating with the multinational companies Nestle and Danone in 2002-03. Both the multinationals have shown keen interest in stepping up the game. However, their plans have not progressed further.
The only thing that can persuade Chauhan to agree to the proposals made by the multinational companies is succession planning which would allow him to consider any stake dilution proposals with greater interest.
Making stake acquisitions is not a new phenomenon for the Tata Group. The acquisitions can help both the companies to up-sell, cross-sell and leverage the customers’ database. Tata is currently emphasizing on spreading its wings in the retail sector, and acquiring a stake in Bisleri International will prove to be beneficial for both companies.
Edited by Prakriti Arora
