Tatas set to gulp down Bisleri. All you want to know

Bisleri

by 5paisa Research Team Last Updated: Dec 13, 2022 - 10:00 am 11.6k Views
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The Tatas may soon acquire the iconic bottled water brand Bisleri for anywhere between Rs 6,000 crore and Rs 7,000 crore. 

Bisleri, promoted by Ramesh Chauhan and his family, is set to be acquired by Tata Consumer Products Ltd, The Economic Times reported, citing Chauhan.

This comes three decades after Chauhan divested brands like Thumbs Up, Limca and Gold Spot to Coca-Cola. The US beverages giant had bought the entire portfolio of aerated drinks from Chauhan and his brother Prakash in 1993. The portfolio also included brands such as Citra, RimZim and Maaza.

When was Bisleri started?

Bisleri was originally an Italian brand that set up shop in Mumbai in 1965. The Chauhans acquired it in 1969. The company now has 122 operational plants, including 13 owned, and a network of 4,500 distributors and 5,000 trucks across India and neighbouring countries.

Who manages the company on a day-to-day basis?

Chauhan has handed over day-to-day management to a professional team headed by CEO Angelo George. Chauhan, 82, has been in indifferent health in recent times and said he doesn't have a successor to grow Bisleri. He also said his daughter Jayanti isn't too keen on the business, according to the report. 

How big is the Bisleri brand?

Bisleri recorded sales of Rs 1,181 .7 crore and profit of Rs 95 crore for the year ended March 2021, the report said, citing data from Tofler. This compares with revenue of Rs 1,472 crore and profit of Rs 100 crore for the year ended March 2020.

Chauhan said Bisleri's turnover for FY23 is estimated at Rs 2,500 crore with profit at Rs 220 crore. 

Who all was interested in buying Bisleri?

Bisleri is said to have had several suitors at different times, including Reliance Retail, Nestle and Danone. 

So, why is Chauhan selling Bisleri to the Tata Group?

Talks with Tata have been going on for two years. Chauhan said he made up his mind after meeting Tata Sons Chairman N Chandrasekaran and Tata Consumer CEO Sunil D'Souza a few months ago. "I like them. They are good guys," he told ET.

The Tata Group "will nurture and take care of it even better," Chauhan said. "I like the Tata culture of values and integrity and hence made up my mind despite the aggression shown by other interested buyers."

Why do the Tatas want to buy Bisleri though?

Tata Consumer is aggressive in the fast-moving consumer goods (FMCG) space and aiming to be among the top three in the sector. It also sells packaged mineral water under the Himalayan brand as well as Tata Copper Plus Water and Tata Gluco+. Acquiring Bisleri will catapult it to No. 1 in the segment.

According to the report, the current management will continue for two years as part of the deal. 

Will Chauhan continue to have any stake in the company?

According to the report, Chauhan does not intend to remain a minority shareholder on the board of Bisleri. 

What does Chauhan plan to sell after selling Bisleri?

After exiting the bottled water business, Chauhan intends to invest in environmental and charitable causes such as water harvesting, plastic recycling and helping the poor get medical treatment, the report said.

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