Tata Consumer Products Ltd said that it had ceased discussions with packaged water maker Bisleri International about a potential acquisition.
The company in its regulatory filing said that it has not entered into any definitive agreement or binding commitment with Bisleri.
“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 said in a stock exchange filing.
This comes after various reports showed that Tata Group is planning to acquire a stake in the bottled water giant.
“The Company had clarified that it evaluates various strategic opportunities for growth and expansion of its business, on an ongoing basis, and pursuant to this, the Management of the Company remained in discussions with various parties, including Bisleri International Private Limited (“Bisleri”),” the filing added.
Bisleri chairman Ramesh Chauhan was in talks to sell the company to Tata Consumer Products for up to 70 billion rupees ($848 million), reported Reuters citing news reports.
Bisleri’s owners were looking to raise about $1 billion from a deal, Bloomberg reported citing people aware of the matter. However, the negotiations with Tata hit a snag as the companies were unable to agree on a valuation.
In 1949, Shri 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% share in India’s bottled mineral water market, reported Bloomberg.
The company also manufactures hand sanitizer. Bisleri was in talks to sell a stake to Tata and several other players, Bisleri Chairman Ramesh Chauhan said in a interview in November.
For Tata Group, acquiring Bisleri could have expanded its portfolio of bottled water brands in India. Tata Consumer Products Ltd. owns the Himalayan Natural Mineral Water and Tata Water Plus brands.
Tata Consumer Products reported a 25.6 per cent rise in consolidated net profit to ₹364.43 crore for the December 2022 quarter. This is against a net profit of ₹290.07 crore in the year-ago period.
The consolidated revenue of Tata Consumer Products major grew by 8.29 per cent to ₹3474.55 crore in the quarter under review from ₹3208.38 crore a year ago.