New Delhi: Unquenchable thirst – that's Tata Tea for you. After buying a stake in Glaceau, Tata Tea is now eyeing Mount Everest Mineral Water (MEMW).
It makes Himalayan mineral water. CNBC-TV18 reports that the Tata Company is the only one in the race.
But Tata Tea says, "We do not comment on speculation." So while Tata Tea has refused to comment on speculation, Mount Everest Mineral Water has said that it is premature to comment.
The Rs 1,500 crore bottled water industry is growing at 40 per cent a year. It's expected to reach Rs 5,000 crore by 2010.
Sources say that with such potential, MEMW promoters value the company at about Rs 400 crore. The promoters hold 21.5 per cent in MEMW, which could fetch them a cool Rs 90 crore.
CNBC-TV18 has also learnt that bidders like Danone and Coca-Cola India had valued Mount Everest Mineral Water at Rs 300 crore. That's way below the asking price.
In September, Tata Tea gulped 30 per cent in American water company Energy Brands for $677 million.
That deal valued Energy Brands at $2.2 billion. Now Tata Tea is thirsty for more.
Not only does Himalayan command 70 per cent in the niche mineral water segment, but MEMW also has one of Asia's largest natural mineral water plants.
It seems like the perfect quencher for Tata Tea.
Comments
0 comment