Tata Consumer Products Ltd will buy Bisleri International for up to Rs 7000 crore, the Economic Times newspaper reported on Thursday, citing the packaged water maker’s chairman Ramesh Chauhan. Tata Consumer Products and Bisleri did not respond to Reuters requests for comment.

The Tata Group houses its consumer business under Tata Consumer Products Ltd (TCPL) which also sells packaged mineral water under the brand Himalayan and with brands as Tata Copper Plus Water and Tata Gluco in the hydration segment. According to industry observers, if the deal is finalised, it would provide the Tata group FMCG arm a larger play into the fast-growing bottled water segment. The Indian bottled water market was valued at over USD 2.43 billion (around Rs 19,315 crore) in FY2021, said a report from market research and advisory TechSci Research. It is expected to grow at a CAGR of 13.25 per cent on account of increasing disposable income, rising health and hygiene awareness, and increasing product innovation, the report added.

“Bottled water is gaining popularity among consumers because it is thought to be more hygienic than loose normal water in the market, which is not good for health and is unsafe to drink,” the report said.