"Schweppes is a very small player in the local market and change of ownership hardly matters," he said. On the threat the takeover may pose to the dominance of his Bisleri mineral water and soda in the market, Chauhan said: "As far as I am concerned, it makes no difference. We have maintained a 80 per cent market share in mineral water and 70 per cent in soda even after the entry of foreign and domestic competitors."

Chauhan said that the deal between Coke and Schweppes will not affect his tie-up with a Schweppes bottler for bottling of Bisleri soda.

Concurring with Chauhan, Pepsi too felt that the acquisition will not have any impact on the soft drinks market in India.

Other market sources felt the acquisition of the Cadbury Schweppes Indian operations was unlikely to lend beverages major Coca-Cola India any distinct advantage. At best, Coke may gain additional market share of 2 per cent.

Cadbury Schweppes Beverages despite being around for over three years now commands a measly 2 per cent in the country's nearly 250 million cases soft drinks market.

The acquisition, in contrast, may result in the battle royale between Coke and its arch-rival Pepsi becoming more accentuated in the coming months. Coke with a market share of 48 per cent currently enjoys a minor edge of 1 per cent over Pepsi, according to the Indian Market Research Bureau (IMRB) audit.

Market sources feel post-acquisition Coke would be saddled with excess bottling capacity. Coke has nearly 50 bottling facilities in its fold including some company-owned units. The move would bring additional 13 bottling units into the Coke fold.

Market sources state that Coke had been unable to utilise full capacity during the peak season, and new units would increase the operating costs of the company further.

Besides, Coke would be now required to spread itself thin promoting as many as ten brands such as Thumps Up, Limca and Gold Spot acquired from Parle and Coke's own brands Coca-Cola and Fanta.

The Indian subsidiary of the UK-based company had entered the country's soft drink market with the launch of carbonated orange drink--Crush--in 1995. Subsequently, it launched Canada Dry and Schweppes soda and lemonade.

Market observers feel that the acquisition would result in a shakeout in the market and Coke may be forced to withdraw certain brands from the market after the acquisition comes through.