Any thing happens in the corporate world, first reaction is on the stock market. It happened with the Bisleri-Tata deal as well. Still this is just a news, but very widely shared on Media. Hence there must be considerable amount of truth behind it. However, it hasn't still taken place, we should understand.
Bisleri is NOT listed on BSE or NSE, hence it's not traded publically. However, the bottling factory for Bisleri, Orient Beverages has hit it's 5-year High in last week. You may check the performance on stock market, as this is not a place for this. However, we shall discuss on why it must be trending. I could see major 3 reasons :-
- Bisleri is a great brand, however, if Tata groups takes it over, there are chances of getting it better, as TATA is a national & huge brand. It's believed that you will only flourish when you get attached to the Tatas.
- By the virtue of it, the bottlers for Bisleri also will get benefitted. Not just because Tata is taking it over, but they will get other brands of premium TATA beverages as well.
- The Packaged Drinking Water Industry is not much in organized sector. Only a few like Orient beverages is a listed company. Hence investors see an opportunity to own a stake in this flourishing unit though buying the equity.
However, it will be wise to observe Tatas further actions. Whether they enhance the existing Bisleri business or maintain status-quo for the packaged drinking water. As Packaged Drinking Water is mainly a low-profit business. If they are buying mainly for the bottling, distribution facilities + the brand, they might use this combined factor to penetrate their more profit making brands.
If we keep on tracking quarterly performance of Orient Beverages, things can get clearer.
I have written an article on this deal earlier, one can read that.
There is also a Video
No comments:
Post a Comment