Tata Group's Talks Over $1 Billion Bisleri Stake Stall Over Valuation: Report

Tata Group had been in advanced talks to take control of Bisleri and the parties were working on finalising the structure of a transaction

Bisleri has a 60 per cent share in India’s bottled mineral water market.

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Tata Group’s discussion for a majority stake in Bisleri International Pvt, one of India’s largest bottled water makers, have stalled over valuation, citing people privy to the development news agency Bloomberg reported. According to the sources, Tata Group had been in advanced talks to take control of Bisleri and the parties were working on finalising the structure of a transaction.

Bisleri’s owners were looking to raise about $1 billion from a deal, the sources told Bloomberg. However, negotiations later hit a snag as the companies were unable to agree on a valuation, said the people. Talks between Tata and Bisleri could still resume, and other potential suitors may emerge, the people said. Representatives for Tata and Bisleri declined Bloomberg’s request for comment.

Bisleri traces its roots to 1949 when Jayantilal Chauhan founded soft drinks maker Parle Group, which acquired Bisleri from an Italian entrepreneur in 1969, according to its website. It said it has a 60 per cent share in India’s bottled mineral water market. The company also manufactures hand sanitizer.

Bisleri was in talks to sell a stake to Tata, Bisleri Chairman Ramesh Chauhan said in a local television interview in November.

Ramesh Chauhan does not have a successor to take Bisleri to the next level. Earlier, he had sold brands such as Thums Up, Gold Spot, and Limca to Coca-Cola.

For Tata Group, acquiring Bisleri could have expanded its portfolio of bottled water brands in India. One of the conglomerate’s listed units, Tata Consumer Products Ltd. owns the Himalayan Natural Mineral Water and Tata Water Plus brands.

TCPL, which has been formed after merging the consumer products business of Tata Chemicals with Tata Global Beverages, aspires to be a formidable player in the FMCG category, by expanding its play into the existing category and venturing into new areas.