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Coca-Cola Plans to Invest $120 m in Indian Arm
K. Giriprakash Business Line
August 31, 2006
Bangalore: Brushing aside the `pesticide in colas' controversy, Coca-Cola
has said it is investing $120 million (Rs 560 crore) more during the
year in its Indian company Hindustan Coca-Cola Beverages (HCCB) to
grow the per capita consumption of its beverages.
A Coca-Cola spokesperson told Business Line that the new investment
in HCCB is expected to increase the urban and rural penetration of
its brands and diversify its range of beverages. "All this has been
designed to help secure a strong future for the company," the spokesperson
said. The spokesperson said Coca-Cola during the last 13 years invested
over $1 billion in its Indian operations. The spokesperson said Coca-Cola
has 60 per cent share in the Indian carbonated soft drink industry
whose current size is 500 million cases (each case consisting of 24
bottles).
The spokesperson said Coke would also expand its vended tea and coffee
business, Georgia. Its `Georgia Gold' hot vending machines will be
expanded further through a concept called `Georgia Junctions'. About
100 Georgia junctions will be rolled out within this calendar year
in Delhi, Chennai, Mumbai, Bangalore, Kolkata and Hyderabad.
These would act as interceptors at high traffic areas and will be
a one stop shop for the consumers. In addition to tea and coffee,
they will carry the entire range of Coca-Cola India's beverage portfolio
including carbonated soft drinks, juices and water.
High quality snacks and bakery items will also be on offer at these
`junctions.' "These junctions are being put up at places frequented
by consumers with high willingness to spend," the spokesperson said.
There are also plans to push `Georgia Gold Frosts' which are cold
coffee and tea vending machines. There are over 6,000 Georgia vending
machines installed across the country.
On its other beverages, the company official said Coca-Cola has a
higher market share than its other brand Thums Up, while its fruit
drink brand, Maaza has a 30 per cent market share. Its bottled water
brand, Kinley has a market share of over 22 per cent.
Investing in Research
Last year, a Coca-Cola official had said that the company wanted to
transform itself into a total beverage company in India as it planned
to launch a slew of health and wellness drink brands in the country.
The official had forecast that over a period of time, the share between
carbonated drinks and non-carbonated drinks could be equal.
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