Source: Hindu Business Line
With the South accounting for nearly 48 per cent of the India business,
Coca-Cola is set to establish a manufacturing base in Karnataka with an outlay of about Rs 500 crore.
The company is in negotiations with the Karnataka Government for allotment of
land in Yadgir district.
“The market for beverages is growing and Coca-Cola is poised to witness 20 per cent growth this year. Last few quarters also illustrate this growth pattern. Going by the market requirements and launch of more fruit-based drinks, we are in the process of finalising plans for a manufacturing base in Karnataka,” Mr Deepak Kaul, Vice-President (South), Hindustan Coca Cola Beverages, said.
Speaking to Business Line here, Mr Kaul said the investments would be spread out over a 3-5 year period. The new manufacturing base is planned for fruit-based drinks. The market for drinks served in PET bottles is set for a big surge and the plant aims to address that demand.
The company had launched a few value-added juices in the fruit segment such as mango fruit drink and plans a slew of launches. Coca-Cola had signed up with the Karnataka Government earlier this year expressing interest to set up a manufacturing base.
At present, Coca-Cola has 52 bottling plants, of which 25 are franchise-owned and rest are company-owned. The plant in Karnataka will be a company-owned one.
According to company officials, Hindustan Coca Cola Beverages currently has 24 manufacturing facilities in the country and nine of co-packers. The project will see initial investment of about Rs 250 crore at the newly-carved Yadgir district, in the industrial park earmarked by the Karnataka Government. The Government accorded permission last week, officials said.
