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Parle Bisleri mulls IPO to fund expansion

Reeba Zachariah

Parle Bisleri, the pioneers in mineral water, plans to go for an initial public offer (IPO) in the next 2-3 years time.

Ramesh Chauhan, chairman of the Rs 4 billion company said, "we plan to go for IPO to fund our expansion and growth activities."

The company will invest Rs 2.60 billion for expanding the existing facilities, whereby the bottling capacity will increase to 200 million cases a day, from 50 million.

Parle Bisleri currently has 25 bottling units, which will be increased to 55. Parle Bisleri will also have a national presence by this year-end. The product, at present, doesn't have a presence in eastern India, Kerala, South Karnataka, Andhra Pradesh and Madhya Pradesh.

"As part of the company's expansion plans", Chauhan added, "we are widening our reach and moving to other geographical regions."

In the Rs 7 billion branded market, Bisleri has a market share of 60 per cent and targets a turnover of Rs 10 billion by next year.

The company's one-litre range accounts for 50 per cent of the turnover and the 500-ml pack, priced at Rs 5, has fueled Bisleri's growth.

The company has also introduced the concept of home delivery for its 20 litre pack (Rs 70 MRP), which will be delivered by a specially-designed fleet.

"Through the 20-litre jumbo economy pack, we are targeting a turnover of Rs 500 million. Real growth can only come from the home segment and if we can rake the home segment we think we'll have hit the jackpot," he added.

The company will introduce 250 ml/300 ml cups shortly which would help to grow the market and it will be priced at Rs 3. Bailley, a brand owned by Ramesh Chauhan's brother Prakash Chauhan has a 15 per cent market share.

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