However, some multinational car manufacturers like Honda, Nissan and Toyota are worried about possible disruption in supply of spares, engines and certain categories of vehicles.

Although Indian companies have a large presence in Thailand and made substantial investments in that country, the military takeover is unlikely to impinge on Indian units there, industry sources here said yesterday.

"As of now, there is no effect," according to Sanjay Choudhury, spokesman of Tata Steel, the Indian private sector major which bought Thailand's Millennium Steel for 150 million dollars last year.

Indian private sector investments in Thailand range from chemicals, rayon fibre and pharmaceuticals and major Indian companies, which have presence in that country, include Aditya Birla Group, Ballarpur Industries, Ranbaxy and Baroda Rayon.

The Aditya Birla group has the biggest exposure to Thailand, having six units and a joint ventureall primarily in chemicals and textiles sectors.

The Indian auto industry too depends on supplies from Thailand of critical components. Toyota company, which imports from Thailand engines for its Innova vehicle model, said the functioning of their plant in that country remains unaffected.

Officials of consumer electronics major Electrolux Kelvinator, which brings certain type of washing machine from its factory in Thailand for its market in India, China, the Middle East and rest of Asia, said it was keeping a watch on the situation in the South East Asian country.

Thailand is a major export destination for Indian pharmaceutical companies. "We are observing the developments in Thailand as the market is very important for our exporters, especially in the small and medium sectors," said Chairman of Pharmaceutical Export Promotion Council Dinesh B Mody.