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Jaipurias to buy Timblos' Pepsi operations in Goa

Sandesh Prabhudesai in Panaji

The three-month long deliberations finally bore fruit: the House of Timblos has decided to sell its bottling plants and marketing operations of Pepsi in Goa and the ten neighbouring districts of Maharashtra and Karnataka to Delhi-based Jaipuria Brothers.

The deal has reportedly been struck for above Rs 600 million, while the agreement between 33-year-old Goan bottler and the young north Indian entrepreneur is to be signed soon, disclosed close sources to Jaipuria Brothers.

Though the actual shifting over would take place only in the second week of June, key officials of Jaipuria Brothers -- a major Pepsi franchise operator running around 11 bottling plants in India and Nepal -- are already in Goa since the last one month.

Timblos, who own a leading mining firm Fomento and Goa's famous five star resort Cidade de Goa at Dona Paula near Panaji, operate Goa Bottling Company with an annual production capacity of 3.5 million cases in Goa and Nectar Beverages Limited in Dharwar, bottling three million cases annually.

Besides Goa, which has the second highest per capita soft drink consumption rate in India, the Timblos were also marketing the 'blue' products in Sindhudurg, Ratnagiri and Kolhapur districts of Maharashtra and Dharwar, Chitradurg, Davengiri, Bijapur, Hospet, Bellary and North Canara districts of Karnataka.

As Jaipuria Brothers have vast experience in marketing Pepsi products in Kathmandu as well as in Delhi and Uttar Pradesh, PepsiCo learnt to have now allotted them two more districts of Karnataka -- Hubli and Gadag -- while blessing the shift over to a new franchise operator.

Incidentally, the Timblos had broken away the franchise deal with Coca-Cola three years ago, countering the attempt made by the Atlanta-based multinational to take over their bottling plant. Prior to that, GBC in Goa has been bottling Parle products since its inception.

Using aggressive marketing methods, the Timblos managed to snatch away 22 per cent of the Coke share, which still stands at 56 per cent against 44 per cent of Pepsi in these areas. Suryakant and Ravi --the Jaipuria brothers -- have now reportedly assured the PepsiCo to score over the 'red' rival, which has now set up a new plant here in March last year.

At a distributors' meet at Hotel Cidade Goa recently, the Jaipurias spelt out their expansion plans by wanting to set up two plants in Goa and Karnataka, producing PET bottles, which have been otherwise imported till date, sources said.

The north Indian bottlers are learnt to have decided to capture the untapped market in the tourist state as well as coastal belt of Maharashtra and Karnataka by using unique marketing methods.

Prashant Timblo, the CMD, could not be contacted for his comments.

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