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Chauhan consolidating Bisleri before offloading stake

Bisleri-owner Ramesh Chauhan said his mineral water business is being consolidated into a single company from eight different ones with 16 manufacturing locations to seek better operational synergies.

Chauhan, who has been negotiating with several multinational companies including Nestle and Groupe Danone for selling minority stake in Bisleri, said it will take between six to eight months for the consolidation process to be completed.

"We were left with up to eight different companies after selling Thums Up, Gold Sspot and other brands to Coke earlier and are at present in the process of amalgamation of all these into one single company," Chauhan told PTI, but declined to give any details of negotiations for offloading stake.

He said while the financial status of the Bisleri business will not change after being made into one company. But as per industry sources, the proposed stake sale in a consolidated Bisleri could bring between Rs 4-5 billion.

"We at present generate Rs 2 billion from the mineral water business but this is not going to be affected by the amalgamation process," he said adding the business was witnessing an amazing 140 per cent growth at present.

Chauhan said 200,000 bottles of Bisleri were being produced per day across the various manufacturing facilities and capacity utilisation was being hiked continuously to meet growing demand.

The country's mineral water market was estimated to be worth Rs 8-10 billion and has been witnessing hectic alignments and joint venture recently by both Indian and MNC players.

Bisleri, which is the largest Indian brand, leads the market. Swiss major Nestle has launched Perrier and San Pellegrino brands, while Danone, which is the second largest bottled-water company in the world, has brought Evian and Volvic brands to India.

Industry sources confirmed that Chauhan would hold 60 per cent stake in the proposed JV, while the remaining 40 per cent equity and the Bisleri brand would be transferred to the foreign partner.

He had similarly sold Thums Up, Limca, Gold Spot and Citra brands to Coca-Cola in 1993 for a reported $ 40 million immediately after the US soft drink giant entered India.

Chauhan was earlier talking to Coca-Cola also to sell Bisleri but talks failed and Coca-Cola launched its Kinley mineral water in the country last month.

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