New Delhi, Sept 12: Pepsico India said today it only wanted to transfer the distribution rights of the Punjab franchisee bottler Dhillon Kool drinks to itself but was not acquiring manufacturing or other operations of the latter. Pepsico had asked the government to permit this transfer. It has now written to the foreign investment promotion board afresh, clarifying its intention, a senior official said.

"We have written to the FIPB, explaining that the bottler will continue to manufacture products and will retain ownership of all manufacturing assets," executive director of Pepsico Abhiram Seth told news agencies here.

"We are only acquiring distribution rights and distribution assets of Dhillon," he added.

Seth said that the clarification has been sent as a letter to the government earlier this week and the company was awaiting the response.

Government had sought a clarification from Pepsico India as to whether the transfer of the Punjab franchisee Dhillon's business to itself also involves acquisition of the latter's assets and shares.
FIPB had then asked the company to withdraw its proposal for transferring distribution operations of the Punjab bottler pending the clarifications sought.

Pepsico's move to acquire Dhillon's distribution business follows its acquisition of Dhillon's bottling operations in Haryana and Himachal Pradesh through subsidiary company Aradhana soft drinks.

Bureau Report