While Coke refused to comment on the deal with Chauhan, it is understood that they have been working on the details for several months. According to Chauhan, who confirmed the deal to sell the rights of `Delhi Bottling' and `Coolaid', it would take another couple of months to finalise things. He says: "In-principle we have agreed to pass on the territorial rights of these bottling units to Coca-Cola. It will take another two months to get over the formalities." Chauhan who sold his brands such as Thums Up, Limca and Gold Spot to Coke in 1993 for $ 40 million, is currently bottler for Coke in Delhi and Maharashtra.

It is understood that Chauhan will continue to bottleBisleri water at these Delhi plants and will also continue to bottle Coke and Thums Up here as a contractual packager. In addition, Chauhan may also bottle some of his own soda water brand at Coolaid -- he may also sell the bottling machinery to Coke at `Delhi Bottling'.

The difference, once he sells his `territorial rights' to Coke is that Coke will now be in charge of all marketing and distribution of the products -- currently, Chauhan is in charge of this for the Delhi region. Once this goes through, Coke will then have more control over marketing and distribution and will be able to augment efforts in these segments.

The greenfield plant of Coke is coming up is in 20 acres area and is expected to be operational by August next year. The annual capacity of this plant is likely to be 10 million cases. This will be the third greenfield bottling plant of the company after Pune and Ahmedabad. Pune plant started production in end 1994, while Ahmedabad started production in March this year.

Sources say theRs 100-crore investment in this bottling unit is part of Coke's total investment of US $ 750 million in India. The company is already roped in 12 bottling units out of which five are joint ventures.

Sources say that the plant is being put up to cater to the rising demand of soft drinks since the demand of soft drinks is likely to increase by 30 per cent in Delhi in the coming three year and 22 per cent increase is likely to be felt in the Ghaziabad-Meerut belt.