BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

Jaipurias take over Timblos' Pepsi unit in Goa, Karnataka

Sandesh Prabhudesai

The Timblos have finally sold their 33-year-old bottling business to the Delhi-based Jaipuria Brothers. The Jaipurais bought over the bottling franchise and marketing franchise rights of Pepsi in Goa and Karnataka.

The deal was struck at $ 15 million.

"We have bought operations in both the states in totality," confirmed Madhu Parekh, the new director of Goa Bottling Company, situated in Margao. The arrangement with the PepsiCo, however, would continue regardless of the change in management, he added.

It would, however, be a joint venture between Jaipuria Brothers --Suryakant and Ravi -- with the former having control over Karnataka operations and the latter looking after Goa. The Timblos also owned another plant Nectar Beverages in Dharwar in Karnataka.

According to Parekh, the marketing operations in Goa, three districts of Maharashtra and nine districts of Karnataka would temporarily be handled by Sellwell Food & Beverages Marketing Company, a marketing firm which handles Jaipurias' marketing functions at their 17 plants in India.

Under Timblos, the Goa and Maharashtra Beverage Ventures Private Limited handled marketing operations, while Trupti Marketing looked after marketing in Karnataka. "We will market the products ourselves in future," Parekh said.

The deal reportedly also includes taking over marketing staff of both the companies owned by the Timblos, though it is still not clear whether Jaipurias would take over the entire staff. "We will do the screening and recruit them afresh," said Parekh.

In spite of the Timblos suddenly giving up Coke production in 1997 to tie up with PepsiCo thereby leaving the Atlanta-based multinational high and dry, Coke still holds around 60 per cent share. "We are still close to 40 per cent," said Parekh, who is confident of out-scoring Coke.

The GBC in Goa, with an annual production capacity of 3.5 million cases, would market Pepsi in Goa as well as Sindhudurg, Ratnagiri and Kolhapur districts of Maharashtra. They now also plan to capture the untapped market in the tourist state, which has the second-highest per capita consumption in the country.

Similarly, the NBL in Dharwar, with the capacity of three million cases, would supply the soft drinks products for Dharwar, Hubli, Chitradurg, Davangere, Bijapur, Hospet, Bellary, Gadag and North Canara. Parekh also confirmed that the expansion plan includes production of PET bottles at both the plants.

ALSO SEE

Jaipurias set to buy Timblos' Pepsi operations

Business