In India, over 45 percent of the soft drinks industry in 1993 consisted
of small manufacturers. Their combined business was worth
$3.2 million dollars. Leading producers included Parle Agro
(hereafter “Parle”), Pure Drinks, Modern Foods, and McDowells.
They offered carbonated orange and lemon-lime beverage drinks.
Coca-Cola Corporation (hereafter “Coca-Cola”) was only a distant
memory to most Indians at that time. The company had been present
in the Indian market from 1958 until its withdrawal in 1977 following
a dispute with the government over its trade secrets. After
decades in the market, Coca-Cola chose to leave India rather than
cut its equity stake to 40 percent and hand over its secret formula
for the syrup.