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Danone in talks for Indian water firm

French foods giant Groupe Danone, which is on a global acquisition spree, is in advanced talks to buy a substantial stake in India's largest bottled water company, an industry source told Reuters on Monday.

Danone, owner of Evian, Volvic and Dannon Water brands, is in discussions with unlisted Parle Bisleri Ltd, the owner of India's top-selling bottled water brand, the source said.

"The talks are in a pretty advanced stage. It would involve buying a substantial stake," the source said.

Officials at Danone's office in Bombay declined to talk on the issue, while senior Parle executives were not immediately available for comment.

Danone has been working to create a network of strong water brands in emerging markets through acquisitions. Last month, it bought a 50 per cent stake in Mexico's Pureza Aga, the No 2 brand in that country's home and office delivery market.

That acquisition followed the purchase of substantial stakes in Poland's Zywiec Zdroj and Indonesia's Utomo group, which owns Aqua, the country's largest brand.

Analysts said a stake in Parle would substantially boost Danone's attempts to boost growth in India, with a population of over one billion.

The company's presence so far has been restricted to a 25 per cent in Britannia Industries Ltd, the country's largest biscuit maker.

The Indian market for bottled water is estimated at over Rs 7 billion ($149 million) and last year grew by 70 per cent. Bisleri, Parle's brand, is estimated to have a share of over 50 per cent of this market.

The rapid growth has spurred many multinationals like Coca Cola Company, PepsiCo and Nestle India Ltd to enter the market.

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