Tata Consumer Products advanced 2.82% to Rs 792.55 after the company issued a clarification on media reports stating its plans to acquire part stake in packaged water firm Bisleri.
Media reports published earlier today stated that Ramesh Chauhan is divesting Bisleri International to Tata Consumer Products Ltd (TCPL) for an estimated Rs 6,000-7,000 crore. Bisleri is reportedly India’s largest packaged water company.
When reportedly asked if he is selling his Bisleri Business, Ramesh Chauhan answered in the affirmative. “Yes. We are,” he has reported said. However, he also reportedly added that the group is in discussions with several prospective buyers.
However, he reportedly denied a report that a Rs 7,000 crore deal has been finalised with Tata Consumer Products (TCPL).
In a regulatory filing made during market hours today, Tata Consumer Products said that the company evaluates various strategic opportunities for growth and expansion of the business of the company, on an ongoing basis. Pursuant to this, the management of the Company remains in discussions with various parties, including Bisleri International.
Amidst this entire buzz, shares of Orient Beverages were locked in 10% upper circuit at Rs 127.95 on the BSE. Over 0.43 lakh shares of the company had changed hands in the counter today as against an average trading volume of 6,978 shares in the past two weeks.
In 2005, Orient Beverages had started business of packaged drinking water under franchise agreement with Bisleri International in the state of West Bengal. The company is doing manufacturing and marketing of packaged drinking water under the trade brand ‘BISLERI’. The company has set up its own manufacturing facilities at Domjur (Howrah) and Dankuni (Hooghly) in the state of West Bengal. It has further expanded business of packaged drinking water in the state of Jharkhand and has got a branch at Ranchi.