Bisleri International marks first international expansion through manufacturing agreement with Dubai Group | Food Business Africa Magazine
UAE – Bisleri International, an Indian bottled water company, has entered into a manufacturing and bottling pact with the Dubai-based diversified Nasser Abdulla Lootah group, paving the way for expansion internationally and across other markets in the Middle East.
The 25-year-old entity, Nassser Abdulla group, has interests in travel, shipping, logistics, mineral water, real estate, and IT.
In the agreement, the manufacturing and bottling will be under the flagship of Emirates Drinking Water, which is part of the Nasser Abdulla Lootah Group of Companies in the region, at its plants in Dubai.
The company will also carry out the selling of the brands in Dubai, Sharjah, and Abu Dhabi in mass-premium general and modern trade stores, hotels, and restaurants, and via e-commerce platforms.
The operations and productions will begin in April 2023. Bisleri–mineral water and Vedica – the Himalayan Spring Water will be available in 500ml and 1.5ltrs.
The production and marketing association will help strengthen Bisleri International’s presence across the UAE, where the bottled market is displaying significant growth projections.
According to Market and Research, the UAE bottled water market was valued at US$797.92 million in 2020, and it is projected to reach a CAGR of 10.81% during the forecast period 2021-2026.
The growth will be driven by an increasing number of immigrants and the growing tourism sector, leading to a surge in demand for functional water.
Besides, the Indian expatriate community is the largest ethnic community constituting approximately 30% of the country’s population.
Owing to the rising population of the Indian community who are already familiar with the Bisleri brand, the partnership comes at a perfect time to connect with the Indian diaspora and strengthen the trust amongst the audience.
Per the same report of Market and Research, the UAE bottled water market is highly competitive with key players focusing on social media platforms and online distribution channels for their online marketing and branding of their products to attract more customers.
The leading participants include Agthia, Masafi, Oasis, Al Ghadeer Bottled Drinking Water, and PepsiCo.
Angelo George, chief executive at Bisleri International, said: “Dubai is one of the world’s largest bottled water markets, because of hot weather conditions, the absence of the home RO purification industry since the water is saline and all water consumption happening through bottled water. The third reason is high tourism and the very rapid expansion of entertainment hubs, restaurants, and hotels.”
The move looks solid even as Tata Consumer Products is close to formalizing one of India’s largest deals in the FMCG sector by acquiring Bisleri International for an estimated Rs 6,000-7,000 crore, with the current management continuing for two years.
In India, Bisleri International has more than 150 manufacturing plants and a network of over 6,000 distributors with 7,500 trucks.
In addition to its mineral water brand Bisleri, the company markets the premium spring water brand Vedica as part of its extensive portfolio that includes carbonated drinks Limonata and Spyci, soda, and fruit drinks.
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