Tata Consumer Products (TCPL) is readjusting its focus on in-house mineral water products like Tata Copper+ and Himalayan after the company cancelled plans to acquire bottled water giant Bisleri, The Economic Times reported.
"Acquiring Bisleri would have fast-forwarded our plans by three years but this plan was just a small puzzle in our big food and beverages (F&B) puzzle box," company CEO and MD Sunil D’Souza told ET. "We will now back our own brands Tata Copper+, Tata Gluco+ and Himalayan mineral water with the resources we have at our disposal."
Bisleri and the Tata Group were in talks for a deal for nearly two years but it was called off in the last stages. Negotiations between the two parties were closed last week.
“Bisleri is a fantastic brand and would have changed the growth trajectory for Tata Consumer but now the plan is done and dusted," D’Souza said. Tata Copper+ is a Rs 400-cr brand while Himalayan broke even for the first time in the fiscal year 2022 due to a strong direct distribution.
Bisleri International operates in the bottled water segment with its flagship brand Bisleri and spring water Vedica. It is also present in fizzy drinks with brands - Spyci, Limonata, Fonzo and PinaColada.
Three decades ago, the Chauhans sold their soft drinks business to the US beverage major The Coca-Cola Company. He transferred brands such as Thums Up, Gold Spot, Citra, Maaza and Limca in 1993 to the Atlanta-headquartered firm.
D’Souza is shopping for F&B brands but refuses to overpay any brand citing his “middle-class mindset” about the value offered at a particular price. The Tata Group company has to catch up to competitors HUL, Britannia and ITC in the space who are miles ahead.
“We have significantly increased distribution to reach 3.6 million and raised spending on brands while parallelly ramping up innovation. Our new product launches now are approximately 2.5 times compared to 2020,” D’Souza is quoted as saying in the report.
TCPL makes tea, coffee, water, ready-to-drink beverages, salt, pulses, spices, ready-to-eat products, breakfast cereal etc. TCPL was formed after merging the consumer products business of Tata Chemicals with Tata Global Beverages. It has done some acquisitions and is expanding its reach in the addressable market as it aspires to be a formidable player in the FMCG category by expanding its play into the existing category and venturing into new areas.
(With PTI inputs)