Chauhan, the founder of brands like as Bisleri(acquired), Maaza, Thums Up and Gold Spot literally became the Brand Man of India. Prakash Chauhan runs Parle Agro that boasts of some well-known brands like Mango Fruiti, Appi, Hippo Snacks etc. Now, it was Ramesh's turn to play his cards right and he did exactly that. Although Ramesh Chauhan tried his best to convince Coca Cola that all his brands were catering to Indian customer tastes (and hence must be treated on par with their global brands), at the end of the day, it was in Coca Cola hands to take the final call. Calcutta, Aug. 30: Ramesh Chauhan-owned Parle Agro — the maker of juice drink Frooti and packaged drinking water Bisleri — has inked an agreement with Keventer Agro to set up a snack food plant. Most of these franchises were not happy with Ramesh Chauhan’s autocratic leadership style and they preferred to work for foreign brands like Coke. He says, “our biggest competitor is our incompetence”. Poach bottlers (franchises) of other cola brands by offering them irresistible benefits. So, this is what happened. Under his leadership, Thumps Up enjoyed a monopoly in the market for almost 20 years, connecting the youth of India with famous slogans like 'Happy days are here again' to 'Taste the thunder'. Better known as Parle Products chairman Ramesh Chauhan worked on Research & Development energy saving in the processing of fruits and fruit drinks in the swinging 60's. image source: appyfizz.com. Acquire a company which already has all the facilities in place, so that Coca Cola can reach out to every nook and corner of India from day one. Forgot Password? Ramesh, chairman and managing director, Bisleri, said, "The Indian market was saturated with regular mango-based drinks. Although the details of the deal were confidential, it was speculated that it was a $60 million deal and there were mixed reactions from industry pundits since most of them could have never expected Chauhan to call it quits. Although Thums Up had 80% of the market share but was majorly dependent on a franchise model and those people were not very happy with the autocratic leadership of Chauhan so they started switching to Coca-cola. So, read on and we'll get to why this analogy is important. Parle Bisleri (1970s), led by Ramesh Chauhan, his wife Zainab Chauhan and their daughter Jayanti Chauhan. The government then plainly asked them to comply or simply stay away and so Coca-Cola abandoned its operations in India. 6,00,000 against a whopping profit of 250 million rupees over a span of 20 years. He joined them and two years later his elder brother who was also the Vice President of the company passed away in a plane crash, leaving the responsibility of running the company, which was already going through a rough phase and declining sales, to Ramesh. It is rumored that Coca-Cola even tried to kill Thums Up but soon realized the brand name it was known for. Eventually, in 1999, Coca-Cola bought Parle, India's top soft drink brand, which bottled Thums up, Limca and Gold Spot. If you have already subscribed to this portal, you will receive notification of the next part of the story. This turned out be a golden opportunity for the Parle brothers, Ramesh Chauhan and Prakash Chauhan, who along with then CEO Bhanu Vakil, launched Thums Up as their flagship drink, adding to their portfolio of older brands like Limca (lime flavor) and Gold Spot (orange flavor). But, this is no laboratory experiment and you are not here to perform one. He made the fizz stronger and marketed it like a more manly drink for the 80's and 90s youth. Prakash Chauhan s Parle Agro markets juices and water under Frooti, Appy, LMN and Bailley. You'll get aerated water or carbonated water! Earlier named Gluco Cola, Parle had to change the name after Coca Cola objected to the name. 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Using his father's desi tactics and the groundwork he had learned at MIT, the company started showing an upward graph again. However, considering the situation (bottlers being poached) & the practicality, everyone agreed that Chauhan did the best thing. The company had been unable to market bottled water and wanted to exit the market. Bisleri enjoyed a clear first-mover advantage and had assumed the generic brand status in a 3.5 million-case market. Parle Product s flagship brands include biscuits Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack. This turned out be a golden opportunity for the Parle brothers, Ramesh Chauhan and Prakash Chauhan, who along with then CEO Bhanu Vakil, launched Thums Up … The foreign exchange act stated that foreign companies selling consumer goods must invest 40% of its equity stake in India in its Indian associates. With a career spanning of around 52 years, Mr. Chauhan's leadership and vision has made Bisleri a brand name synonymous with mineral water, a household name, and the leader in the industry. The new unit at Barasat will be ready by December and manufacture Parle’s snack brand Hippo. Following this withdrawal, the Parle siblings – Ramesh and Prakash Chauhan – broadened their portfolio by adding a new drink, Thums Up, to it. ‘‘He was on board the plane,’’ confirmed Ramesh Chauhan, chairman, Parle Bisleri and Amol’s uncle — the man who created Thums Up, Limca and Gold Spot. The boss man at Bisleri is Ramesh Chauhan, a dynamic entrepreneur in the Indian soft drinks industry. However, several of these brands including Citra, Thums Up, Limca, Gold Spo t and Maaza were sold to international soda giant Coca Cola in 1993 for a reported $40 million. On 24th October 1993, Coca Cola launched its drink with a bang symbolically in front of the Taj Mahal, Agra and distributed millions of coke bottles all over India for free. Bisleri enjoyed a clear first-mover advantage and had assumed the generic brand status in a 3.5 million-case market. Founded in 1929, Parle Products was owned by the Chauhan family of Vile Parle, Mumbai and was split into three separate companies – Parle Agro, Parle Bisleri and Parle Products. 1969 – Ramesh Chauhan of the Parle Group buys Bisleri Ltd. from Felice Bisleri. Ramesh Chauhan tells BestMediaInfo why and much more ... Parle is the first Indian company to buy out a MNC. He saw a gap which no one else could. By 1988, Parle had monopolized the soft drink market. Confectionery and biscuits have been an exclusive domain of Parle Products under Sharad Chauhan and Vijay Chauhan for several decades. Times’s are about to get better. Ramesh Chauhan, brother of Prakash Chauhan, manages the packaged water business under the Bisleri brand name. On 24th October 1993, Coca Cola launched its drink with a bang symbolically in front of the Taj Mahal, Agra and distributed millions of coke bottles all over India for free. He always found a way of making brands a part of his consumers' lives. Parle Bisleri. reach out to every part of India, and secondly, there was no significant competition (because the leader itself was acquired). But then something big happened in Indian politics which also altered the faith of many and also the way businesses operated in India. http://guruprasad.net/posts/part-12-thums-up-story-coca-cola-enters-india/. On seeing the franchise bottlers being converted into Coke manufacturing plants, Ramesh Chauhan decided to call it quits and surrender. He asked himself why would anyone need a bottle of soda when one is traveling for maybe just half an hour or so. Gold Spot was later named after Parle’s famous peppermint called Parle Gold Star. He is the same man who had launched Golds Spot, Limca, ThumpsUp, Maaza when the Janata government forced MNCs like CocaCola out of India in 1977. The company had been unable to market bottled water and wanted to exit the market. In 1962 a 22-year-old man named Ramesh Chauhan returned to India after receiving a degree in mechanical engineering from the Massachusetts Institute of Technology to run his family business. Now, you will see what air plus water can make up together? & Stay updated with latest trends. All three companies continue to use the family trademark name "Parle". While Coca Cola was celebrating its grand entry into India, Ramesh Chauhan, despite severing links with his brands was anxious about what would happen to them. Small wonder then that in 1985-86, Parle’s Ramesh Chauhan launched a clear lemon drink — Citra. Besides manufacturing, Keventer will be responsible for marketing, sales and distribution. This process would take several years. Next Part: Parle, a company founded by the Chauhans family in 1949, bought the bottled water brand from Italian entrepreneur Signor Felice Bisleri in 1969. Rolls Royce – The Indian Maharajas Motor Car, Why do Indians draw Rangoli – Scientific Reason. Parle Agro (1960s), led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and Appy) Parle Bisleri (1970s), led by Ramesh Chauhan, his wife Zainab Chauhan and their daughter Jayanti Chauhan. During the signing of the contract, Ramesh Chauhan turned emotional & cried incessantly. Did Coca Cola suppress or kill Parle’s brands or did it try to re-position each brand to different segments? If this continued, then Parle would end up with less than 10 bottlers (since 4 were its own and few were still very loyal to it), thereby losing significant marketshare and dying a natural death. Basically Chauhan brother were owner of Parle company (Parle G). Signup with us to unlock all features! 4 lakhs. If you have not subscribed yet, you can subscribe by entering you email-id and confirm it from your mailbox. In order to get a foothold in India, Coca Cola had 3 options: Coca Cola started with the 2nd option i.e Poaching bottlers. Although the details of the deal were confidential, it was speculated that it was a $60 million deal and there were mixed reactions from industry pundits since most of them could have never expected Chauhan to call it quits. On the other, brother Ramesh Chauhan’s Parle Exports had a stranglehold in the market, holding the majority market share with its Bisleri. Till then, Gold Spot ruled the market with its innovative ads and a good understanding of its demographic. If it is not a long train journey, no one needs to dilute their whiskey. Now, the fizz market was all there to be ruled with little competition from smaller regional competitors like  Campa Cola, Double Seven, Dukes and United Breweries Group's McDowell's Crush, who did not have a vision like Ramesh had. That Parle Agro should trail Coca-Cola is an ironic twist of fate. Earlier Thumbs Up was manufactured by Indian brothers Ramesh and Prakash Chauhan with Bhanu Vakil. Parle, a company founded by the Chauhans family in 1949, bought the bottled water brand from Italian entrepreneur Signor Felice Bisleri in 1969. The packaged water business that is now controlled by Ramesh Chauhan is the market leader with a more than 26% share, competing with PepsiCo's Aquafina and Coca-Cola's Kinley. It was double-bonanza for coca cola because firstly, it managed to instantaneously reach out to every part of India, and secondly, there was no significant competition (because the leader itself was acquired). Some of its products include Bisleri Water, Bisleri Soda, Vedica, Urzza and some other add-ons! Gold Spot’s owner Ramesh Chauhan, the chairman of Parle Products, bitterly opposed the entry of American cola companies in the late 1980s. What does S stand for in iPhone 3GS, 4S & 5S? Mr. Ramesh Chauhan is Chairman & Managing Director at Parle Bisleri Pvt Ltd. and a Principal at Parle Products Pvt Ltd. Parle Agro is an offshoot of Parle Products, which was founded in 1929 in British India. What really happens to your money in Temple Hundi? There is even a Thums Up pahaad(hill) in the Manmad Hills near Pune resembling its logo. Chauhan's biography, 'Thunder Unbottled, From Thums Up to Bisleri', which marks his 50 year association with Parle, has been written by his friend and journalist, Patricia J Sethi. ‘‘He was on board the plane,’’ confirmed Ramesh Chauhan, chairman, Parle Bisleri and Amol’s uncle — the man who created Thums Up, Limca and Gold Spot. This can be seen in the way he handles his brands and employees. 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Coca-Cola made a ton of cash operating under 100% foreign equity. It was a very tough decision to make because these brands (Thums Up, Limca, Gold Spot) were carefully nurtured by Chauhan like his own children and now he had to sell them off!! Ramesh Chauhan, 67, is the chairman of Bisleri International. But then, in 1993 Coca-Cola re-entered the Indian market after government approval under the new liberalization policies that were coming to India. Best thing you would've done this year. Don’t worry, We;’ll not spam you & You can unsubscribe with us any time. 1977: The Indian foreign exchange act was implemented in the year 1974 as Indira Gandhi came into power. Sign in or create an account.It takes less than a minute! Ramesh Chauhan was helpless because almost every week, there would be news of one more bottler switching to Coca Cola. Enter your email address to subscribe to this blog and receive notifications of new posts by email. It was owned by the Chauhan family of Vile Parle, Mumbai. Parle Bisleri (the 1970s), led by Ramesh Chauhan; Each of these was owned by different factions of the original Chauhan family. Do you know what happens when you add air to water? Ramesh has even bigger plans for bottled water and believes that only one thing could change the fate. Ramesh says his major takeaway from his time abroad was that there was a difference between bookish knowledge and execution on the ground. Till then, Gold Spot ruled the market with its innovative ads and a good understanding of its demographic. The original Parle group was amicably segregated into three non-competing businesses. 6,00,000 against a whopping profit of 250 million rupees over a span of 20 years. The orange flavored drink was a carbonated soft drink manufactured by Parle led by Ramesh Chauhan. With a heavy heart, he bid goodbye to his brands and sold them to Coca Cola. In such a scenario, The Strategist takes a look at how it all started -- with Bisleri -- and how Ramesh Chauhan, chairman, Parle Bisleri created a market out of pure water. Sharad Chauhan, 65 is the managing director of Parle Products and Raj Chauhan, 61 is an active director on board of Parle Products. Honest Review - Ludo | Zain Anwar, Shubham Gaur, Rajesh Yadav, Aaron Koul | MensXP, Copyright © 2009 - 2020 Times Internet Limited - All Right Reserved. However, considering the situation (bottlers being poached) & the practicality, everyone agreed that Chauhan did the best thing. Since India was waking up to 21st century and progressing (albeit slowly) by the day, there was still enough room for competition, but surprisingly, no company could come close to Parle. 1969 – Ramesh Chauhan of the Parle Group buys Bisleri Ltd. from Felice Bisleri. His sources within Coca Cola had told him that the company was planning to kill his brands and promote its own brands instead. Hence, it was very easy for Coca Cola to hunt down the top bottlers and poach them. Gradually expand operations by building its own plants throughout India. Parle Product s flagship brands include biscuits Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack. Parle Exports bought Bisleri from an Italian entrepreneur in the year 1969 and began to sell mineral water in India. Parle Agro started operations in 1984 with Prakash Chauhan at the helm and his daughters who are part of the business too. So he introduced 500 ml and 1-liter water bottles and today you can see them served in hotels, marriages, railways and everywhere else. Ramesh Chauhan honored by The President of India, Zail Singh. They invested just Rs. If this continued, then Parle would end up with less than 10 bottlers (since 4 were its own and few were still very loyal to it), thereby losing … Even though all family businesses are allowed to use the Parle trademark, different Chauhan factions have traditionally refrained from entering each other s territories. Coca-Cola agreed with investing 40% foreign equity but stated that they would still hold full power in technical and administrative units with no local participation allowed. It can be said that “Taste the Thunder” helped Ramesh Chauhan also taste thunder. He also owned Thums Up and Limca. Cricket and Bollywood celebrities endorsed the brand. Parle Agro started operations in 1984 with Prakash Chauhan at the helm and his daughters who are part of the business too. Directors of Parle Bisleri Private Limited are Anjana Amitabh Ghosh, Abdul Kadeer Khan, Jayanti Ramesh Chauhan, Parag Jitendra Bengali, Ramesh Jayantilal Chauhan, . By 1988, Parle had monopolized the soft drink market. And he successfully did so. Chauhan's biography, 'Thunder Unbottled, From Thums Up to Bisleri', which marks his 50 year association with Parle, has been written by his friend and journalist, Patricia J Sethi. While Parle products like Parle G and Rasna were parts of Parle Agro products, the carbonated drinks business was led by Ramesh Chauhan under Parle Bisleri. It is led by Ramesh Chauhan, his wife Zainab Chauhan & his daughter Jayanti Chauhan and all the shares of Bisleri are held and owned by the family only. Login using OTP A cross India, lemon drinks or nimbu paani has been the quintessential refresher served in homes. Prakash Chauhan, his brother, 60, is the youngest in the family and handles Parle Agro, the company that owns Frooti brand and Bailey. Confectionery and biscuits have been an exclusive domain of Parle Products under Sharad Chauhan and Vijay Chauhan for several decades. Altough Parle was the market leader with more than 80% of the market-share catered by 62 bottlers across India, it was a fragile business model because Parle owned only 4 bottlers while the rest (58 bottlers) were owned by franchises. Get Ready For Simpler, Better, & More Curated Shopping Experience. Unlike many businessmen's children who slip into the family business, slowly, over a couple of years, Ramesh was promptly set to the task and asked to build a soft drink plant at Andheri, in suburban Mumbai. He also owned Thums Up and Limca. http://guruprasad.net/posts/part-12-thums-up-story-coca-cola-enters-india/, http://guruprasad.net/posts/part-14-thums-up-story-coca-cola-tries-kill-parle-brands/, Why Indian toilet is best – Scientific Reason, Banned in India: Reminiscences of Nehru Age by Mathai, Why midnight of 15 August 1947 for Indian Independence. By September 1993, Ramesh Chauhan realized that there was no point fighting with the giant which was on a poaching spree and decided to “surrender”. Chauhan too did not see any potential for the product at that time. All three companies continue to use the family trademark name "Parle". This is not the first time a member of the Chauhan family — owners of Parle biscuits, Bisleri bottled water and a number of soft-drink brands — has been involved in an air tragedy. On Sunday, the Chauhans were praying fervently for Amol — the son of Sharad Chauhan, cousin of Parle Products chairman Ramesh Chauhan. Gold Spot’s owner Ramesh Chauhan, the chairman of Parle Products, bitterly opposed the entry of American cola companies in the late 1980s. They invested just Rs. Chauhan too did not see any potential for the product at that time. 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