Tata Consumer Products Limited (TCPL) has stopped discussion on the potential acquisition of packaged drinking water brand Bisleri for an estimated Rs 6,000-Rs 7,000 crore.
"The Company wishes to update that it has now ceased negotiations with Bisleri with regard to a potential transaction and to confirm that the it has not entered into any definitive agreement or binding commitment on this matter," Tata Consumer said in a regulatory filing.
The development of acquisition of Bisleri by TCPL was first reported by Economic Times last year on November 24 where it stated Bisleri's Chairman Ramesh Chauhan, 82, has been in indifferent health in recent times and says he doesn't have a successor to take Bisleri to the next level of expansion.
ALSO READ: A great deal for Bisleri, but will it be one for Tata Consumer, too?
During the same time, CNBC-TV 18 had reported that in a major divesting move, Chauhan had reportedly decided to give up its control of the brand to Tata Consumer. Chauhan talked about the acquisition proposal. However, mincing his words, he seemed reluctant to divulge critical details.
The 82-year-old industrialist led-Bisleri International operates in the segment with bottled water brand Bisleri and spring water Vedica. It is also present in fizzy drinks with brands - Spyci, Limonata, Fonzo and PinaColada.
Chauhan has also created various super brands such as ThumsUp, Gold Spot, Maaza and Limca, which was acquired by the Coca-Cola Company in 1993 when the Atlanta-headquartered company had re-entered the Indian market.
ALSO READ: Tata Consumer tries to poke a drinking straw into Bisleri as the FMCG seeks to slake India's thirst
The Tata Group houses its consumer business under Tata Consumer Products Ltd (TCPL) which also sells packaged mineral water under the brand Himalayan and with brands as Tata Copper Plus Water and Tata Gluco+ in the hydration segment.
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. In its latest annual report, TCPL said "with strong product innovation, investment in strengthening our brands and strategic acquisitions, we are well on track in our journey to become a leading FMCG company".
Meanwhile, shares of TCPL on March 17 closed 2.05 percent higher at Rs 708 apiece on BSE.
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