Ramesh Chauhan on Cash-Flow Discipline

In this BusinessLine conversation, Chauhan frames the cola business as structurally different from bottled water. Coca-Cola and Pepsi, he says, treat carbonated drinks as a 'bread and butter business' that requires constant attention to carton suppliers and cap suppliers, whereas Bisleri's water business is 'a cash business' that buys on credit and always carries sufficient stock.

After selling the cola portfolio, Chauhan concentrated on bottled water — in which he tells BusinessLine he maintains a leadership position despite all competition. He frames the choice as a deliberate strategic refocus on a category whose cash economics suited his operating style, rather than as a retreat from carbonates. The water business had lower volatility, less supplier complexity and no franchise-related governance strain.

Chauhan positions himself as a 'savvy businessman sitting on cash reserves'. He discloses that proceeds were invested with Merrill Lynch — 'we can draw on the money any time we want' — and that Bisleri follows a policy of not borrowing. The 'we don't borrow' rule is presented as a strategic commitment to fund growth from internal accruals and invested cash, a notably conservative posture for an Indian consumer goods company of that scale.

Chauhan emphasizes the structural simplicity of running a water business compared to a carbonated-drinks business: he no longer has to worry about glass bottles, sugar, citric acid, food colour or carbon dioxide gas. He is glad 'the headache has moved on to someone else', referring to Coca-Cola.