The Hindu Business Line : Sabol buys bottled water plant in Hubli

The Coimbatore-based Sabol Associatess, a major player in the packaged drinking water market in Tamil Nadu, has acquired the mineral water and soda division of a beverages company BTM Beverages Pvt Ltd in Hubli, Karnataka, for Rs 2.5 crore.

The company hopes the acquisition would help it expand reach to Karnataka, Maharashtra and Goa, which would be new markets for the company.

Speaking to Business Line from Hubli today after inking the deal, Mr K.M. Senthil, Chairman and Managing Director, Sabol Associatess, said the mineral water and soda divisions of BTM Beverages has capacity to produce 4,000 litres of packaged drinking water per hour. The acquired brand would be phased out from April 1 and Sabol brand would be launched from that date. The immediate plan was to double the capacity at an investment of Rs 50 lakh.

He planned to invest Rs 5 crore over the next two years in the Hubli plant to launch new products like soda, fruit juices etc. He expected the plant to clock a sales turnover of Rs 5 crore during the next financial year.

Mr Senthil added that the company would take the franchise route for Andhra Pradesh for which plans are expected to be finalised in the next few months.

More Stories on : Strategy | Mergers & Acquisitions | Water

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