Coca-Cola India on Monday announced plans to invest $2 billion (around Rs 10,000 crore) over next five years in India to ramp up its business capabilities as it prepares to gear up for increased business opportunities.
Coca-Cola India is a 100% subsidiary of Atlanta-based The Coca-Cola Company.
"India has passed the threshold and reached a scale where it can be among the top 10 markets for us," said Ahmet C Bozer, president Eurasia and Africa for The Coca-Cola Company.The current investment plans by Coca-Cola assumes significance because since 1993, 18 years since Coca-Cola started operations in India, it had invested around $2 billion in India.
The investments are a part of the company's 2020 Vision wherein it plans to double its revenue. The current phase of investment is also a part of the its plans to invest $30 billion (Rs 1,50,000 crore) globally over the next five years to support anticipated growth across its system.
"We plan to ramp up our manufacturing capabilities, establish new bottling lines and procure new cold chain equipment among others," said Atul Singh, president and CEO, Coca-Cola India and South West Asia. Singh refused to divulge about how much of the said investment would come under foreign direct investment. "A chunk of this investment will also come from our Indian bottling partners."
A part of this planned investment will go toward setting up a company-owned manufacturing plant. The company at present is scouting for locations in Karnataka to establish a new manufacturing facility.
Singh said that the company is also preparing a roadmap for strategic investments in rural markets, wherein it is pilot-testing solar coolers, which would keep beverages cool in rural areas with erratic electricity supply.
India's per capita consumption of Coca-Cola beverages ranks much below other countries such as China. It produces popular beverage products such as Coca-Cola and Thums Up, among several others.