Chauhan Sells Delhi Bottling Units To Coke

After months of negotiations, Ramesh Chauhan, former owner of Thums Up and Limca brands, has finally sold his bottling units in New Delhi to soft drink major Coca Cola. A (MoU) to this effect was signed on Tuesday and the sale is expected to be completed by mid-October, Chauhan said, adding that differences between him and his brother Prakash, too, have been sorted out.

According to industry sources, Ramesh Chauhan is also believed to have signed an agreement with his brother Prakash for buying out his equity in Delhi Bottling Company (DBC) for about Rs 14 crore.

However, Chauhan remained tight-lipped about the price of the two units, Coolaid and DBC, on which there are conflicting reports. According to a certain section of the industry, the price could be about Rs 100 crore, while other sources put the figure at around Rs 200 crore. According to an official spokesperson for Coca Cola India, an MoU has been signed with Ramesh Chauhan for acquiring the bottling units. But the spokesperson was not forthcoming on the price at which the acquisition would take place.

Coolaid is wholly owned by Ramesh Chauhan, while he and brother Prakash hold 50 per cent each in DBC. During the negotiations, differences were reported to have cropped up between the two brothers, with Prakash's refusal to give up his equity leading to a stalemate in the talks between Coke and Ramesh Chauhan. The bottling plant in Mumbai, where both the brothers have an equal stake, would also be sold to coca cola in a month's time, Chauhan told PTI.

Together, the Mumbai and Delhi units are expected to fetch around Rs 250 crore for the Chauhans, who had sold their soft drink brands such as Thums Up and Limca to Coca Cola in 1993 for a reported $60 million.