After the sale of Tata Bisleri, Chauhan sees little value in maintaining minority ownership. He questions what he will do with his wealth once he is no longer in charge.
Ramesh Chauhan is selling Bisleri International to Tata Consumer Products Ltd (TCPL) for an estimated 6,000-7,000 crore over three decades after selling soft drink brands Thums Up, Gold Spot, and Limca to Coca-Cola.
As part of the agreement, the present management team will stay on for another two years. The 82-year-old Chauhan has been complaining of declining health and claims he has no one to lead Bisleri into its next phase of growth. According to Chauhan, his daughter Jayanti has no interest in the family company. The Indian market is dominated by Bisleri, which packages more water than any other manufacturer in the country.
Although selling Bisleri was difficult, Chauhan is certain that the Tata Group "will nurture and take care of it even better." In spite of the aggressiveness of other potential bidders, I made up my mind because I admire the Tata culture of values and ethics.
Several companies are said to have shown interest in Bisleri throughout the years. These companies include Reliance Retail, Nestle, and Danone. He met with Tata Sons chairman N. Chandrasekaran and Tata Consumer CEO Sunil D'Souza a few months ago, capping up two years of negotiations with the company. "They're OK with me. They are decent people, "they revealed to the press.
Elimination of Minority Interest
Following the sale of the company, Chauhan sees no value in maintaining a minority ownership. He said, "What am I going to do with it when I'm not in charge?" Once Chauhan has left the bottled water industry, he plans to devote his time and money to environmental and humanitarian projects including water harvesting, plastic recycling, and ensuring that the poor have access to healthcare.
In 1993, Coca-Cola purchased the rights to all of Chauhan and his brother Prakash's carbonated beverage formulations. Citra, RimZim, and Maaza were a few more in addition to the ones already named. The Tata Consumer division is very competitive in the fast-moving consumer goods (FMCG) market, with the goal of being in the top three. Additionally, the company markets bottled mineral water under the Himalayan brand, in addition to its own Tata Copper Plus Water and Tata Gluco+ lines. By purchasing Bisleri, it will quickly rise to the top of its market.
According to Chauhan, financial considerations weren't the only motivating factor in the transaction. "Honestly, I have no idea how I will spend the money. The price I was able to get for it wasn't my only motivation for selling; I also wanted to find it a loving home where it would be cared for as much as I had. I've put my heart and soul into this company, and others who work here feel the same way "His words.
To run the day-to-day operations, Chauhan has hired a team of professionals led by Chief Executive Officer Angelo George. According to Chauhan, the Bisleri brand would generate Rs 2,500 crore in revenue in FY23, with a profit of Rs 220 crore. According to business information platform Tofler, Covid's revenue for the fiscal year ending in March 2021 was Rs 1,181.7 crore, whereas the company earned Rs 100 crore the previous year.
Bisleri is an Italian company that has been operating in India since 1965, when it opened a store in Mumbai. In 1969, the Chauhan family bought the property. There are 122 active factories (13 of which are owned by the corporation), 4,500 distributors, and 5,000 vehicles that serve customers across India and the surrounding areas.
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