Financial Daily from THE HINDU group of publications
Saturday, Nov 16, 2002
Financial Daily from THE HINDU group of publications Saturday, Nov 16, 2002 |
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Mergers & Acquisitions Corporate - Mergers & Acquisitions PepsiCo buys out two bottling units Ratna Bhushan
NEW DELHI, Nov. 15 SOFT drinks major PepsiCo India Holdings is buying out two units of its franchisee bottler, the Chandigarh-based Dhillon Kool Drinks and Beverages Ltd, according to industry sources. Dhillon Kool Drinks has been PepsiCo's second largest north India-based franchisee bottler, in-charge of the soft drink company's beverage manufacturing, marketing and distribution operations in the States of Punjab, Haryana and Himachal Pradesh. PepsiCo's biggest franchisee bottler in the region is Mr Ravi Jaipuria. "As a single franchisee system was servicing a large area encompassing three different States, there was a need to utilise the available resources in the region in a more judicious way. Hence, Pepsi proposes to engage in bottling activity of its own in Himachal Pradesh and Haryana, thus enabling Dhillon Kool Drinks to cater to the booming soft drink market in Punjab in a more focused and effective manner,'' Pepsi's official spokesperson told Business Line. Punjab is among the top per capita beverage consuming States in the country. The buyout details for the Haryana and Himachal Pradesh units have already been finalised, according to sources. However, PepsiCo declined to divulge the financial details of the deal. PepsiCo Holdings has recently undertaken an organisation structure revamp, with five market units being defined according to regions. In addition to the north, east, west and south market units, a central market unit has also been defined. The inter-mix of company-owned bottling operations (COBOs) and franchisee-owned bottling operations (FOBOs) within the market units is expected to help provide senior resources pool of line and staff managers, impact both COBOs and FOBOs, and enable transference of best practices both ways, according to the company.
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