Pepsi India has moved the foreign investment promotion board to acquire the territorial and distribution rights, marketing rights as well as the distribution assets of its franchise bottler Dhillon Kool Drinks in Punjab.

Earlier this year, the company had taken over the bottling plants along with its territorial rights as well as distribution assets and rights of the same bottler in Haryana and Himachal Pradesh.

However, during the latest acquisition, Dhillon will retain the bottling right as well as its bottling unit, said sources in the company.

The sources declined to comment on the consideration for the deal.

Once this deal is completed, Pepsi will get complete control over the territories of Punjab, Haryana and Himachal Pradesh.

Though company executives declined to comment, the soft drink maker has been talking to some of its other franchise bottlers for taking over the non-performing or under performing territories.

Pepsi has the approval for acquiring Dhillon Kool Drinks' operations in Haryana and Himachal Pradesh and the unit at Panipat.

Hence, it requires additional permission for the Punjab acquisition. Pepsi held 26 per cent in Dhillon Kool Drinks Bottling Ltd, of which 24 per cent was held by Aradhana Beverages and Foods Company Pvt Ltd, a wholly owned subsidiary of PepsiCo India Holdings.

The previous acquisition was made by Aradhana Beverages.

Whether the same company would engage in the current acquisition could not be ascertained, but sources said that was the most logical step.

The government had earlier directed PepsiCo to divest 49 per cent shareholding in Aradhana, post acquisition, in keeping with an entry-level condition imposed on its in December 1997, within fives years from the date of the acquisition.

It had also said that the soft drink major cannot use domestic debts to fund the acquisition, and that it will have to discharge all the statutory liabilities of Dhillon Kool Drinks.