Coca-Cola India to invest $100 M

Wednesday, 27 November 2002, 08:00 Hrs
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Global soft drink giant Coca-Cola has decided to pump in an investment of more than $100 million in its Indian operations next year to boost its brand presence in the domestic market.

NEW DELHI: As part of the investment plans, the distribution network of Coca-Cola India, a subsidiary of the U.S.-based Coca-Cola Company, will also be significantly expanded by end of next year. "The investment plan for next year has been finalised. Coca-Cola will invest over $100 million in India to increase production capacity of all our brands," said Nantoo Banerjee, director (communications) of Coca-Cola India. "The investment will also be utilised to expand our distribution network in all parts of the country. We want to have one million retail outlets for all products, up from some 900,000 now," Banerjee told IANS. Coca-Cola has invested $800 million in its Indian operations since the launch of its local arm in 1993. India has emerged as one of Coca-Cola Company's fastest growing markets in the Asian region. According to Banerjee, the investment of over $100 million would be for fresh capacity addition in all its key brands like Coke, Thums Up, Limca, Maaza fruit juices and Kinley bottled water. The parent company has been strengthening its presence in the Indian beverage market in recent years through a string of acquisitions and new product launches. Besides making soft drinks, Coca-Cola India holds a significant market share in the rapidly growing bottled water market in India. It recently also entered into the powder drink and coffee business to boost market presence. Banerjee said beside the investment of over $100 million by the parent company the domestic business partners of Coca-Cola India also plan to infuse around $40 million on strengthening the operations. Coca-Cola India has 26 company owned plants and 14 franchise-bottling units in different parts of the country. "The investment by our bottling partners will mainly be on strengthening the transportation and suppliers network in the country. We will attempt to capture a larger share of the rural market with new initiatives," he said.
Source: IANS