What made Glaceau''s founder to sell it to Tatas?
By We are trying to underst | 01 Sep 2006
Tata Tea recently acquired a 30 per cent stake in US-based Glaceau Water Products for $677 million. Founder and CEO of Glaceau, J Darius Bikoff says that they could strike a deal with the Tatas because they their vision for Glaceau. Briefing about the post deal managerail structure for Glaceau, Bikoff says the Tatas will have two members in the board, of which one will be elected as Chairman.
Calling Tatas a visionary, Bikoff says that they have always been pioneers. CNBC-TV18 shares with domain-b its exclusive interview with Bikoff:
Q:What is the rationale behind the deal and what the future holds?
Glaceau was not for sale and Tata approached us. It all happened very quickly and we immediately saw that the Tatas shared our vision for Glaceau. We saw an opportunity to work together closely to build this vision for future.
We are trying to understand the integrities of the deal and through this 30-per cent stake - Tatas get to elect a non-executive chairman as well as two board members, do you not consider that a bit too much levy for managerial strings?
No, the board will be composed of five members; the Tatas will have two and the current shareholders will have three. Tata will also elect the Chairman from one of their two members.
Have you decided who those board members will be?
We are talking about that now. This all has happened so quickly.
When will we come to know about the board of members?
Well, it might even be later today.
The deal looks like an investment option for the Tatas, but when we really scratch below it there must be more to it. Are the Tatas going to leverage on Glaceau's distribution business or are you both going to join together and work for a common vision of enlarging energy brands?
At about one level it is really about that shared vision. The more we talk, the more we realise how many opportunities are there for both of us, which is always reassuring because it feels really great as a partnership. Tata is a group; it has always really been ahead of the curve whether it was making steel in India at the end of the century, or it was building cars in India, they have always been way ahead of the curve.
One of the great attributes I have seen in Tatas as a group, is their ability to see into the future and understand the important role that nutrients play in our lives.