{"id":2857,"date":"2013-08-23T10:38:36","date_gmt":"2013-08-23T10:38:36","guid":{"rendered":"http:\/\/www.franchisemart.in\/franchise\/?p=2857"},"modified":"2013-08-23T10:39:16","modified_gmt":"2013-08-23T10:39:16","slug":"coca-cola-investment-in-india-on-track","status":"publish","type":"post","link":"https:\/\/www.franchisemart.in\/franchise\/coca-cola-investment-in-india-on-track\/","title":{"rendered":"Coca-Cola investment in India on track"},"content":{"rendered":"

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New Delhi: Coca-Cola Co., the world\u2019s largest beverage maker, is on track to spend $5 billion in India over eight years, setting aside concerns that a slowing Indian economy would affect the company\u2019s investments.<\/p>\n

\u201cOur investments in India are on track as we build scale, manufacturing capacity, distribution capability and a robust product portfolio to realize our business goals in India,\u201d said Ahmet C. Bozer, executive vice-president of Coca-Cola. The company is anticipating that India will be among the top five markets globally in the near future, up two positions from its current rank, said Bozer. who was in Delhi on Thursday to celebrate 20 years of Coca-Cola\u2019s operations in India and to inaugurate a bottling plant in Greater Noida.<\/p>\n

The company could, after evaluating demand and volume growth, even increase investments if required, he said.<\/p>\n

In June 2012, company chief executive Muhtar Kent had announced the $5 billion investment in its India business to expand capacity and improve its distribution network in Asia\u2019s third largest economy. The company has 57 bottling plants in India, including the new one that\u2019s owned and operated by franchise Moon Beverages, which has invested more than Rs.140 crore to build the plant.<\/p>\n

The new plant will allow the company to make beverages including value-added water and sports drinks, expanding the beverage maker\u2019s existing product portfolio in India.
\nBozer said the company\u2019s vision was to double system\u2019s (franchise bottling plants) revenue in India in this decade. \u201cOur ongoing investment in the country is focused on delivering innovation, partnerships and a beverage portfolio that enhances the consumer experience…\u201d he said.<\/p>\n

To be sure, India volume growth for the owner of beverage brands including Coca-Cola, Fanta, Sprite and Minute Maid was a feeble 1% in the second quarter of fiscal year 2013 on account of a heavier-than-normal monsoon.<\/p>\n

Although foreign investors are holding back on their investments amid concerns over India\u2019s slowing economic growth, Bozer clarified that there would be no slowdown in the execution of the company\u2019s investments in India. \u201cThere will be economic ups and downs and that will not affect our investments,\u201d he said.<\/p>\n

To be sure, the per-capita consumption of Coca-Cola in India is relatively low at 14 compared with a world average of 94. Per capita consumption is defined by the company as the number of servings of 8 fluid ounces consumed by a person in a year.<\/p>\n

Globally, the company sells 3,000 products. \u201cOur portfolio will expand over time,\u201d said Atul Singh, deputy president, Pacific Group, Coca-Cola.<\/p>\n

Pinakiranjan Mishra, a partner and national leader, business and risk advisory services, at consulting firm EY, said carbonated beverages are still not the regular thirst-quenchers used by consumers in India unlike in the West. As a category, packaged beverages are under-consumed and under-penetrated.<\/p>\n

\u201cThere is enough room for existing companies to grow. However, lower price points will spur demand,\u201d he said.<\/p>\n