Coca-Cola knocks on FIPB doors to keep Indian ops bubbling
Sources said DIPP in its earlier correspondence with HCCH said since the government had already given an approval for issuing preference shares in January and August 2003, the company will require an amendment in that original approval letter. As per the terms of that letter issued in 2003, the preference shares issued by HCCB to HCCH would be redeemed after seven years from the date of allotment.
"Present request of HCCH is to stipulate that the preference shares would be redeemed after 14 years from the date of allotment," the company said in its application. It also said that an extension of period of redemption of the preference shares will not in any manner change the shareholding patterns of HCCH or HCCB.
Both these entities are owned and controlled by two Singapore-based entities - Hindustan Coca-Cola Overseas Holdings and Bharat Coca-Cola Overseas Holding. The formation of HCCH was allowed by a Cabinet decision in late 1990s to be set up with 100% foreign equity as a holding company which will then invest in the non-alcoholic beverage business of The Coca-Cola Company (TCCC), USA. The government also allowed HCCH to set up a downstream operating subsidiary to engage in the preparation, packaging and sales and distribution of non-alcoholic beverages. Sources said, HCCB suffered financial losses since its early days. After restructuring of its balance sheet, a balance of
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