Coca-Cola India has invested close to $4 million in its operations in Andhra Pradesh this calendar year. The company also indicated that it was prepared to re-start its plant in Kerala after June 15, pending approval from the Kerala government.
Addressing a media conference in the city, Sunil Gupta, vice-president (public affairs), Coca-Cola India, told newspersons that the company had invested in beefing up its production capacity in Andhra Pradesh, apart from investments in logistics and sales generating assets like chillers and freezers.
"In the carbonated soft drinks (CSD) segment, the investments are made ahead of the peak summer season and this year Coca-Cola has invested close to $70 million in its Indian operations. About $4 million has been invested in our Andhra Pradesh operations," Gupta said.
Coke has seven bottling plants in Andhra Pradesh, inclusive of two franchisee operations. Apart from these seven the company has three co-packers.
Co-packers will only do bottling for the company but cannot market the product in the market unlike the bottling plant franchisees, who can undertake marketing and sales operations.
Andhra Pradesh is a major market for the company and contributes to 22 per cent of the company's total Indian sales in volume terms.
"This is a major market for us with close to 20 per cent of the national volumes for Thums Up coming from the state. In fact, Thumps Up makes for 40 per cent of our total sales volumes in the state apart from Limca which contributes 25 per cent, "Gupta said.
Gupta also indicated that Coca-Cola's lemon-based CSD 'Sprite' and fruit juice offering 'Maaza' have notched up a volume growth in excess of 250 per cent in the Andhra Pradesh market.
The controversy-ridden Coca-Cola bottling plant in Kerala, in which it has sunk in close to Rs 80 crore (Rs 800 million), may also start operations in mid-June, Gupta indicated.
The company's Kerala plant in Plachimada made news last summer, when it was accused of dumping hazardous sludge. Apart from that, the company was accused of reducing the groundwater table in the region.
Local groups in Palakkad district of Kerala had alleged that the plant drew more than its share of water, leaving locals without access to ground water.
"We have proved that we do not draw more water than what is required. This apart we have done rain water harvesting work in the region, to allay fears," Gupta said.
The company he said was in touch with the Government of Kerala which had indicated that once the Southwest monsoon sets over Kerala in the first week of June, it may allow the company to re-start its operations.
"Coca-Coal India is clear that we are not shutting down the plant and going away. The employees are still on our rolls and we are confident that we will be able to start operations after June 15," he said.
