Coca-Cola Upgrades Investment Plans for India

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Atlanta, Georgia based multinational soft drink giant Coca-Cola and its local bottlers said Tuesday that they plan to invest $ 5 billion in India by 2020, approximately 3 billion more than the company had originally planned.  This expansion strategy and investment is targeted as a result of consistent growth the company has seen in India over the past five years.  

Increased investment in India is part of a massive $30 billion investment strategy the company anticipates to roll out over the next few years as it anticipates global growth for its product offerings. Coca-Cola’s plan is to invest the money on manufacturing upgrades, logistical capabilities and marketing initiatives.

Times were not always this good for the company and its bottlers over the years. Coca-Cola pulled out of  India in 1977 after Indian courts demanded they reveal the secret recipe amidst allegations of  high levels of pesticides. The company returned to the country in 1993 and has since benefited from it’s popularity along side competitor, Pepsi.

Coca-cola has seen double digit growth in seventeen of the past twenty three quarters. Atul Singh, the country’s CEO said in a statement, ”Our India business has been growing at a robust rate over the last five years, and our goal is to continue this momentum”. The company reportedly does really well with the “Thumbs Up” brand. Other product offerings include diet varieties of its flagship products and juices.

According to the Denver Post, “The company is also seeking its first stock split in 16 years. The company wants a 2-for-1 stock split. The move is subject to approval by shareholders on July 10.”

Coca-Cola also employs more than 25,000 people on location in India with an estimation that more than 5 times more people are impacted indirectly as a result of their presence. The additional investment is expected further catalyze growth and open up new doors for several communities within India.

 

 

 

Sources & Further Reading:

http://www.thecoca-colacompany.com/dynamic/press_center/2012/06/3-billion-sustainable-growth-india.html     http://www.denverpost.com/business/ci_20939868/coca-cola-invest-additional-3b-india#ixzz1yuyOuiFe

 

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