Tata Consumer Products Ltd (TCPL) on Friday said it has ended negotiations with Bisleri with regard to a potential acquisition deal. It also said Tata has not entered into any definitive agreement or binding commitment on this matter.
“The Company wishes to update that it has now ceased negotiations with Bisleri with regard to a potential transaction and to confirm that the Company has not entered into any definitive agreement or binding commitment on this matter,” Tata Consumer Products Ltd said in a regulatory filing.
The Tata group company was in talks since November 2022 to buying the packaged water giant for about Rs 6,000-7,000 crore, according to reports. Ramesh Chauhan, who is the chairman of Bisleri International, has no successor to take Bisleri to the next level of expansion.
However, later, the media reports said the companies were unable to agree on the valuation and the talks were stalled. Bloomberg earlier reported that Bisleri’s owners were looking to raise about $1 billion from a deal.
Three decades ago, Chauhan had also sold soft drink brands Thums Up, Limca and Gold Spot. As part of the Bisleri-TCPL deal, the current management will continue for two years, the ET report said. The talks with Tata have been going on for the past two years.
Bisleri is expected to have a turnover of Rs 2,500 crore with a profit of Rs 220 crore in 2022-23.
The Tata group already sells packaged mineral water under the Himalayan brand as well as Tata Copper Plus Water and Tata Gluco+. It will become the top company in the segment after acquiring Bisleri.
In 1993, Coca-Cola bought the entire portfolio of aerated drinks from Chauhan and his brother Prakash. These include Thums Up, Limca, Citra, RimZim and Maaza.
Bisleri was started as an Italian brand in Mumbai in 1965, which was later acquired by Chauhans in 1969. Currently, it has over 122 operational plants and 4,500 distributors across India and its neighbouring countries.
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