Bisleri International, which is in the process of being acquired by Tata Group, has signed its first international manufacturing and bottling agreement with Dubai-based Nasser Abdulla Lootah Group, according to a report by The Economic Times.
Nasser Abdulla Group is a 25-year-old entity with interests in travel, shipping, logistics, mineral water, real estate and information technology.
Group company Emirates Drinking Water will be involved in production and bottling, but not in distribution.
The agreements between Bisleri and Nasser, related to distribution, are expected this week.
The Vedica brand products will be exported and not produced and bottled by Emirates Drinking Water, the company clarified.
Angelo George, Chief Executive Officer at Bisleri International, told ET, “Dubai is one of the world’s largest bottled water markets, because of hot weather conditions, absence of the home RO purification industry since the water is saline and all water consumption happening through bottled water. The third reason is high tourism and very rapid expansion of entertainment hubs, restaurants and hotels.”
There are mainly local players dominating UAE’s bottled water market at the moment. “Established players could potentially enter and create disruption,” George said, as quoted in the report. Bisleri’s entry into the UAE will pave the way for expansion across other Middle Eastern markets, he said.
According to information on the company’s website, Emirates Drinking Water can produce 45,000 cartons each day.
The development comes even as Tata Consumer Products is close to concluding one of India’s largest deals in the FMCG sector, acquiring Bisleri International for an estimated Rs 6,000-7,000 crore, with the current management continuing for two years.
In 2015, Bisleri started a franchise distribution model in the Middle East, but it dissipated very quickly.
More than 6,000 distributors and 7,500 trucks are part of Bisleri International's network of 150 manufacturing plants in India.
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