News: Manikchand plans Rs 500 cr bottled water spend

(PTI 21/02/2007) New Delhi - Charting out an aggressive strategy in bottled water business, Manikchand Group today said it plans to invest about Rs 400-500 crore for both organic and inorganic expansion in the next few years.

"As we look to strengthen our presence in the bottled water business we are weighing options of growing our business through natural expansion and also by acquisitions, for which we could invest up to Rs 400-500 crore," Rasiklal Dhariwal, Chairman, Manikchand Group, said.

He said the company was more keen on acquisitions to give the scale of operations faster and have identified two big national brands for possible acquisitions. He, however, did not name the potential targets.

Asked if the brands were 'Bisleri' and 'Himalaya', which are reported to be on the blocks, Dhariwal declined a direct reply but said: "We are considering options at the moment and if any interesting option comes up we are open".

The company is expanding capacities at its various facilities, including Pune where it is adding 1 lakh litres per day to the existing 2 lakh litres per day.

"Also, we are setting up a plant in Lucknow with a 50,000 litres per day capacity and another at Uttarakhand for 30,000 litres per day," he added.

The company today unveiled a new 'Oxyrich' bottled water, which it claims has 300% higher oxygen content.

Dhariwal said the company was in talks with UAE's leading bottled water brand 'Masafi' for out-licensing its patented technology with ISO 22000:2005 certification.

He said it has applied for registrations in US, a few European countries and China for the technology. It has received registrations in South Africa and Tanzania, he added.