Industry watchers claim that if the agreement is made, it would give the FMCG arm of the Tata group a bigger opportunity to compete in the quickly expanding bottled water market.
Ramesh Chauhan, chairman of Bisleri International, reportedly stated that Tata Consumer Products Ltd. would buy the business for up to 7,000 crore on Thursday, according to the Economic Times newspaper.
Bisleri and Tata Consumer Products did not respond to requests for comment. Tata Consumer, which climbed more than 2.5% in early trade, was the top gainer among the Nifty50 today.
The consumer division of the Tata Group is housed under Tata Consumer Products Ltd (TCPL), which also sells packaged mineral water under the Himalayan brand as well as brands like Tata Copper Plus Water and Tata Gluco in the hydration category.
According to market observers, should the deal go through, it would provide the Tata group’s FMCG division a greater potential to compete in the swiftly growing bottled water market.
In FY2021, the Indian bottled water market was estimated to be worth over USD 2.43 billion (about 19,315 crore), according to a report by market research and advisory TechSci Research.
According to the report, it is anticipated to develop at a CAGR of 13.25 percent due to rising disposable income, rising health and hygiene awareness, and rising product innovation.
The survey found that consumers are becoming more interested in bottled water because it is thought to be more hygienic than loose, conventional market water, which is unhealthy. and harmful to drink.”
Numerous companies are vying for market share in this market segment, including Bisleri, the front-runner, as well as Coca-Cola India through its brand Kinley, PepsiCo’s Aquafina, Parle Agro’s Bailley, and a company called the Indian Railway Catering and Tourism Corporation (IRCTC).
Tata Chemicals’ consumer goods division and Tata Global Beverages’ beverage division were combined to establish TCPL, which aims to be a powerful competitor in the FMCG sector by stepping outside of its comfort zone and growing into new markets.
According to TCPL’s most recent annual report, “we are well on track in our goal to become a leading FMCG company with strong product innovation, investment in strengthening our brands, and strategic acquisitions.”
Water brands Bisleri and Vedica from Ramesh J. Chauhan-led Bisleri International compete in the market.
The brands Spyci, Limonata, Fonzo, and PinaColada all have fizzy drinks that contain it.
With the Coca-Cola Company’s 1993 re-entry into the Indian market, Atlanta-based company Chauhan also developed a number of super brands, including ThumsUp, Gold Spot, Maaza, and Limca, which was purchased by the Coca-Cola Company.