On Thursday, Jayanti Khan Chauhan, Vice-Chairperson of Bisleri International, stated that the company is expanding its production and refining its distribution network strategically to enhance product placement and achieve cost-effective market gains in the packaged drinking water industry.
Presently, the company operates 128 manufacturing facilities and is actively pursuing an expansion plan to raise the count to 150. This expansion will encompass both plants owned by Chauhan’s company and exclusive co-packers aligned with Bisleri.
Additionally, Bisleri is broadening its product range to include carbonated soft drinks (CSD) and elevating its brand Vedica Himalayan Spring Water for a premium positioning. This move complements its core business of packaged drinking water, showcasing an innovative approach.
When asked about the outlook, Chauhan said “We are definitely going to increase our distribution, scale up on distribution and manufacturing for CSD for Bisleri. This strategic placement of manufacturing units and distribution networks will make it easier and cost-effective for us to get our products to the markets”.
To strengthen its presence in the premium segment, Bisleri International announced on Thursday that it is expanding its brand Vedica into the sparkling water market.
Read More: Bisleri’s Vedica launches Himalayan Sparkling Water, expanding premium portfolio
The company aims to be a leading player in this segment, which is “very niche at the moment but growing rapidly,” said Chauhan.
Vedica presently makes up roughly 5 percent of Bisleri International’s revenue, and the company foresees it becoming a INR 100 crore brand within the next 2-3 years.
Despite facing disruptions caused by the COVID-19 pandemic, the company has maintained a consistent annual growth rate (CAGR) of 17 percent over the past four years.
According to information obtained from the Registrar of Companies, a division of the Ministry of Corporate Affairs, Bisleri International reported a revenue of approximately INR 2,300 crore for the fiscal year 2022-23.
When asked about the performance of Bisleri International in the current fiscal, Chauhan said, “This year has been good and we are growing close to a CAGR of 17 per cent”.
The company experienced a notable rebound following a temporary downturn in sales through out-of-home channels, a crucial sector for the entire beverage industry.
Over expansion of the product portfolio, Chauhan said “We definitely will expand”.
According to Angelo George, CEO of Bisleri International, unorganized players continue to dominate the bottled water market. Nevertheless, the proportion of branded companies is on the rise.
“Now, possibly in the last couple of years, the organised market among the top four or five players has become about 45 per cent of the market,” he said, adding that our objective is to become really dominant in the organised sector by improving market share further.
George added that Bisleri holds a commanding share of over 50 percent in the organized segment of the branded bottled water market.
In the packaged water segment, Bisleri faces competition from Kinley by Coca-Cola Co and Aquafina by PepsiCo Inc.
Previously, there were reports indicating that the promoters were in the process of selling their stake in Brand Bisleri to Tata Consumer Products Ltd (TCPL). However, Tata Group’s FMCG arm later announced that it had discontinued negotiations with Bisleri regarding a potential transaction.
Tata Consumer Products Ltd (TCPL) has an existing presence in the bottled water segment through its brand, Himalayan.