Will Tata dominate Bisleri ??

 will Tata dominate Bisleri  ??

As one of the top three FMCG companies in the industry, Tata strives to be a leader in the fast-moving consumer goods sector. With the acquisition of Bisleri, along with pre-existing products like Himalayan, Tata Copper Plus Water and Tata Gluco+, the TCPL is likely to emerge as the market leader. he Indian retail market has undergone a significant transformation, and witnessed incredible growth. Around 8 percent of India’s employment, and it contributes over 10 percent of the country’s Gross Domestic Product (GDP). Post-pandemic, the retail sector observed a decline in the market size of 8.5 percent in FY 2021. Although the online sector sustained its growth momentum; the traditional and organised retail sector had to witness a major hit. India’s retail sector is worth $836 billion in FY 2022, with an 81.5 percent contribution from traditional retail. According to a BCG-RAI report titled ‘Racing Towards the next wave of Retail in India’, the Indian retail industry is likely to witness 10 percent annual growth to reach approximately $2 trillion by 2032. February 9, 2023 Page 2 In order to continue the growth momentum in the retail industry, such acquisitions are beneficial for the retail ecosystem. The largest acquisition (by deal value) was Walmart, the world’s largest retailer, acquiring a 77 percent stake in India’s leading e-commerce marketplace Flipkart for $16 billion. Similarly, in August 2020, Reliance Retail Ventures Ltd. acquired Future Group’s retail and wholesale business, and logistics and warehousing business for Rs 24,713 crore The proposed transaction would indeed constitute a marriage of two iconic brands that evoke trust in the consumers. With its tremendous inventory, sales volume, and network coverage, Bisleri would certainly bring a substantial market share of the packaged mineral water segment to the hands of the TCPL. It is estimated that revenue of the TCPL will be increased by 10-15 percent in the subsequent years, which will reflect on its share prices. In a word, this is ‘once in a decade’ deal, and will have multiplier effects on the overall Indian retail industry. Views are personal, and do not represent the stand of this publication