A deal that is estimated to cost Tata Consumer about Rs 6,000-7,000 crore, will make the company new owners of India’s largest packaged water company.
Bisleri International will no longer be its own entity, as per latest media reports. In a major divesting move, Ramesh Chauhan has reportedly decided to give up its control of the brand to Tata Consumer Products Ltd. (TCPL). A deal that is estimated to cost Tata Consumer about Rs 6,000-7,000 crore, will make the company new owners of India’s largest packaged water company.
According to a report in the Economic Times, the current management of Bisleri is expected to continue for almost two years. While the step is reportedly a part of the deal, the report adds that Chauhan doesn’t have a successor to take Bisleri through the next level of expansion.
Calling the decision to sell Bisleri a “painful” one, the report further quotes Chauhan as saying that The Tata Group “will nurture and take care of it even better.” It adds, “I like the Tata culture of values and integrity and hence made up my mind despite the aggression shown by other interested buyers.”
As per several media reports, Bisleri’s conversations with Tata Consumer had been on for almost two years now despite several other suitors pitching in. These included Reliance Retail, Nestle and others.
The ET report also mentions that Chauhan didn’t express any interest in having a minority stake in the company. Additionally, after giving up the control of Bisleri to Tata Consumer, he wishes to “refocus and invest in environmental and charitable causes such as water harvesting, plastic recycling and helping the poor get medical treatment.”