About current affairs underlying the concept is a uniquely Indian mind set A few years after it won government

approval, General knowledge about Pepsi acquired the holdings of its two partners, Voltas Limited and Punjab Agro-Industries Corporation. In a major restructuring of its operations, Pepsi set up a holding company, Pepsi India Holdings, a 100 per cent subsidiary of PepsiCo International. Today, the company has a 43 per cent share of India's US$750 million soft drinks market. Another unit, Pepsi Foods Limited, manufactures and markets snackfoods under the Ruffles brand. Recently, it acquired an interest in Haldirams, a manufacturer of traditional Indian cereal-based snacks. Additionally, the company also introduced its Pizza Hut chain of restaurants in 1996. In a curious twist to the Pepsi saga, Parle, the Indian soft-drink manufacturer that led the opposition to Pepsi's entry, sold out to Coca-Cola, Pepsi's international rival. The sale of Parle to Coke is not without irony for the Indian company had orchestrated its anti-Pepsi campaign on a nationalist platform, arguing that India did not need foreign investors to make soft drinks. Parle's campaign against Pepsi evoked a sentiment that in 1997 became a slogan for the BJP's swadeshi brand of economic policy: 'India needs computer chips, not potato chips.' About current affairs underlying the concept is a uniquely Indian mindset that believes consumer goods are frivolous while industrial products such as steel, cement and chemicals are what the nation needs. Nevertheless, the entry of Pepsi into the Indian market achieved what the company said it would. Today, there is keen competition in the soft-drinks market, which was once dominated by Parle whose market share exceeded 70 per cent. This has led to better distribution systems, which were once marked by shortages even in prime urban markets during the peak summer season. Innovation is rapid and new products are on shelves faster than most Indians dreamed possible. Between Pepsi and Coke sponsorships, India's competitive sports and entertainment markets are booming. Pepsi's long struggle to enter the Indian market emphasizes the need for patience when it comes to setting up a business in India. For that, parent company backing is critical. Also, Pepsi's handling of its Indian entry was widely acknowledged for its diplomatic finesse. The Indian experience, in that sense, gave a worldwide boost to Pepsi's reputation. The interplay between Indian business, foreign capital and Indian politics can be gauged from the experience of three major international companies that entered India in the late 1980s and the early 1990s encouraged by the liberal progressive government of Rajiv Gandhi: Pepsi, Whirlpool and STAR TV. it during the summer of 1988. This was an important tactical victory because virtually 70 per cent of annual soft drinks sales are in the summer months from April to August. In the end, Pepsi started in India in September 1988, nearly two and a half years after its original application.