Tata Consumer Plans to Acquire Bisleri for ?7,000 Crores: A Major Move in India’s Fast-Growing Packaged Water Market

Indian consumer goods giant, Tata Consumer Products, is set to acquire India’s leading packaged water brand, Bisleri, for ?7,000 crores. This acquisition, which aligns with Tata Group’s strategy to expand its presence in the fast-growing packaged water market, is expected to provide significant impetus to Tata Consumer’s FMCG segment.

The Bisleri Story

Bisleri, established in 1965 by Italian brand Felice Bisleri, is one of India's pioneering mineral water brands. Ramesh J Chauhan, the owner of Bisleri, decided to sell the company due to a lack of a suitable successor. Chauhan, who played a pivotal role in launching brands like Thumbs Up, Gold Spot, and Maaza, is known for his strategic acquisitions and trademark leadership in the beverage industry. The Chauhans acquired Bisleri in 1969, and it has since grown to become a notable player in India's packaged water market.

Financial Performance and Market Presence

Bisleri's financial performance underscores its position in the market. For the fiscal year 2023, Bisleri reported a turnover of ?2,500 crores and a profit of ?220 crores. The company operates 122 plants, with 13 owned facilities, and has a vast network of 4,500 distributors and 5,000 trucks. It competes in various segments, including bottled water, with brands such as Bisleri, Springwater, Vedica, and fizzy drinks like Siciary, Limonata, Fonzo, and PinaColada.

The Acquisition and Strategy

The Tata Consumer Products acquisition, valued at ?7,000 crores, aims to capitalize on the rapidly growing Indian bottled water market. According to market research by TechSci Research, the Indian bottled water market was valued at ?19,315 crores in fiscal year 2021 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 13.25% driven by increasing disposable income, health and hygiene awareness, and innovative product offerings.

The acquisition is significant for Tata Consumer Products, as it will help the company leverage Bisleri’s strong market presence and established brand portfolio. Currently, Tata Consumer Products competes in the packaged mineral water segment with brands like Himalayan, Tata Copper Plus Water, and Tata Gluco. The company's entry into the bottled water market through Bisleri is expected to enhance its overall market share and profitability.

Market Landscape and Competitors

The Indian bottled water market includes major players such as Coca-Cola through its brand Kinley, PepsiCo's Aquafina, Parle Agro’s Bailley, and Indian Railway Catering and Tourism Corporation's Rail Neer. However, Bisleri remains the market leader, and its acquisition by Tata Consumer Products is viewed as a strategic move to strengthen Tata Group's consumer business.

Conclusion

The acquisition of Bisleri by Tata Consumer Products is expected to drive growth for both entities and provide a significant boost to India's packaged water market. This move aligns with the broader strategy of the Tata Group to expand its consumer goods portfolio, marking a pivotal step forward in the Indian FMCG sector.