Coca-Cola, Pepsi Plan To Set Up Bottling Plants In Tamil Nadu

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Cola majors Coca-Cola India and Pepsico Holdings Ltd are currently testing waters for setting up their bottling plants in Tamil Nadu. While Pepsi is in the process of setting up another bottling plant, Coca-Cola is eyeing the State for setting up a greenfield plant to can Kinley, its mineral water brand.

Government sources told FE that top officials from Pepsi have had several rounds of discussions with senior government officials to explore the possibility of setting up another bottling unit in the state. The company has reportedly been scouting for a suitable place for putting up its new bottling unit for Pepsi.

“They have zeroed in on Nilakottai Industrial Park of SIPCOT and soon will be setting up their facility. The company is awaiting the clearance from the Pollution Control Board (PCB) for the project. The investment in the project is likely to be in the range of Rs 5 crore,” sources said.

Similarly, Coca-Cola India is planning to set up a water treatment plant at the Perundurai Growth Centre of SIPCOT near Erode on a joint venture arrangement with Coimbatore-based Annapoorna Group. The company is planning to use the facility for Kinley.

A joint venture company named Poornam Beverages Ltd has already been floated as a special purpose vehicle for setting up the project. The company would initially buy land from SIPCOT for setting up the water treatment plant and expand it later depending on the success of the project. The project is expected to kick off within the next couple of months after obtaining PCB approval, sources said.

As per the project, Poornam Beverages will source water from SIPCOT, treat it and can it for Coca-Cola. The product will then be marketed by Coca-Cola under the ‘Kinley’ brand name. The joint venture company will generate revenue from the co-packers fee to be paid by Coca-Cola. “Coca-Cola has already identified the suppliers for the plant and machinery. The production capacity of the machine selected for the project is about 60 bottles per minute. However, the actual production of the plant will depend on the requirement of Coca-Cola and their guarantee on marketing,” they said.