Tata Consumer says still in talks with Bisleri Int'l for majority stake

If this deal, estimated at Rs 6,000-7,000 cr goes through, it would become the largest in the Indian FMVG, surpassing HUL's April 2020 acquisition of Horlicks from GSK for Rs 3,045 cr

Tata Consumer Products is still in discussions with Bisleri International to buy a majority stake in the packaged water company, the consumer goods firm said in a statement.

Asserting that it remains in discussions with various parties, including Bisleri International Private Ltd, Tata Consumer said it evaluates various strategic opportunities for growth and expansion of its businesses on an ongoing basis.

"The company will make appropriate announcements/disclosures as and when any such requirement arises. At this point in time, there is no further information to be provided with respect to this,” the statement said.

Last November, Chauhan had told Business Standard that he is in discussion with TCPL to sell a majority stake in the company for Rs 6,000-7,000 crore, adding that he expects the deal to be completed in 7-8 months.

Bisleri was originally an Italian company set up by Felice Bisleri. It entered Mumbai in 1965 with its packaged drinking water brand. Four years later, Ramesh Chauhan and his brothers acquired the firm for Rs 4 lakh, according to market information.

Currently, it has over 122 operational plants and 4,500 distributors pan-India and in neighbouring countries.

In FY22, TCPL’s revenue from operations stood at Rs 12,425 crore.

According to media reports, Bisleri is likely to clock sales of Rs 2,500 crore and earn a net profit of over Rs 200 crore in FY23.

If this deal goes through, it would become the largest in the Indian fast-moving consumer goods space. The biggest deal in this space so far, happened in April 2020, when Hindustan Unilever acquired Horlicks from GSK for Rs 3,045 crore. This is followed by Reckitt Benckiser UK buying Paras Pharmaceuticals, which had pain relief ointment Moov as part of its product portfolio, for Rs 3,260 crore in 2010.

ITC also acquired Sunrise Foods, which sells spices, for Rs 2,150 crore in July 2020.