Ramesh J Chauhan, 82, will sell his packaged water company Bisleri to Tata Consumer Products Ltd (TCPL) for approximately Rs 6,000-7,000 crore, nearly thirty years after selling Coca-soft Cola’s drink brands Thums Up, Gold Spot, and Limca. Chauhan lacks a successor because his daughter Jayanti is uninterested in the business.
As part of the agreement, the current management of India’s largest packaged water company will be retained for two years. The company’s octogenarian chairman hasn’t been keeping well and has been in poor health in recent years.
Chauhan happy to sell Bislery to tata group
Chauhan believes that while selling Bisleri was a “painful” decision, the Tata Group “will nurture and take care of it even better. I like the Tata culture of values and integrity, so I decided despite the aggression shown by other interested buyers,” he stated.
He made his decision after meeting Tata Sons chairman N Chandrasekaran and Tata Consumer CEO Sunil D’Souza a few months ago, after talks with Tata had been ongoing for two years. “I like them. They are good guys,” he stated.
Claiming that the deal wasn’t just about the money, Chauhan noted, “Even I don’t know what I will do with it (the money) but let me make it clear. It was not just the value I am getting for it, I was more anxious to find a home that would look after it as I did. This is a business I have built with passion and it is now run by equally passionate employees,” he said.
Planned to invest charitable causes
On keeping a minority stake in the company, chairman Chauhan said he doesn’t see any point in keeping stakes. “What will I do with it when I am not running the show?” he said. After selling his packaged water company, Chauhan plans to refocus and invest in environmental and charitable causes like water harvesting, plastic recycling and helping the poor get medical treatment.
Meanwhile, in 1993, he and his brother sold the entire portfolio of aerated drinks to Coca-Cola. The portforlio also included Citra, RimZim, and Maaza in addition to Thums Up, Gold Spot, and Limca. Tata Consumer is aggressive in the fast-moving consumer goods (FMCG) space, aiming to be one of the top three players. It also sells Himalayan mineral water, Tata Copper Plus Water, and Tata Gluco+ packaged mineral water.
The 82-year-old has delegated day-to-day management of Bisleri to a professional team led by CEO Angelo George. According to Chauhan, the Bisleri brand’s revenue for FY23 is expected to be Rs 2,500 crore, with a profit of Rs 220 crore.
The packaged water company was founded in Italy in 1965 and first arrived in India in Mumbai.The Chauhans bought it four years later, in 1969.
