Danone eyes Indian bottled water brands - report

MUMBAI, July 27 (Reuters) - French food company Groupe Danone (DANO.PA: Quote, Profile, Research, Stock Buzz) has shortlisted acquisition targets in the Indian bottled water market, including DS Group's Catch and Sheelpe Enterprises' Aava, the Economic Times said on Friday. Danone, which also imports its Evian water brand in India, has been reported to be keen on increasing its presence in the beverages and dairy business in India, which are growing quickly on the back of rising incomes and the expansion of modern trade.

Danone has a stake in India's top biscuit maker Britannia Industries Ltd. (BRIT.BO: Quote, Profile, Research, Stock Buzz).

"Danone has approached us," DS Group Chairman Ravinder Kumar told the paper. "Whether we strike a deal with them or not will depend on a lot of factors."

A founder of Sheelpe Enterprises confirmed discussions with Danone, but refused to give details, the paper said.

The newspaper had earlier reported Danone, Coca-Cola Co. (KO.N: Quote, Profile, Research, Stock Buzz) and the consumer goods unit of Wipro Ltd. (WIPR.BO: Quote, Profile, Research, Stock Buzz) were in talks to buy India's top bottled water brand, Bisleri.

But the founder of Bisleri told a television news channel on Thursday he was not in talks for a stake sale.

PepsiCo Inc.'s (PEP.N: Quote, Profile, Research, Stock Buzz) Aquafina, Mount Everest Mineral Water's (MEMW.BO: Quote, Profile, Research, Stock Buzz) Himalayan and Coca-Cola's Kinley also compete in the market for bottled water, which the paper estimated at 20 billion rupees ($494 million).

($1=40.5 rupees)

((Reporting by Rina Chandran, editing by Mark Williams; Reuters Messaging: rina.chandran.reuters.com@reuters.net; +91 22 6636 9251)) Keywords: DANONE INDIA/ Keywords: DANONE INDIA/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nBOM266900