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Thursday, November 19, 1998

Coca-cola to set up two bottling plants in Maharashtra 

Sanjay Jog  
Mumbai, Nov 18: Coca-Cola, the soft drinks giant, has decided to invest Rs 200 crore for setting up two state-of-the-art mega bottling plants in Maharashtra. A high-level team will soon hold meetings with the officials of Maharashtra Industrial Development Corporation (MIDC) for selecting the site.

Mantralaya sources told The Financial Express that the company would invest Rs 100 crore each for the two plants, one in the radius of 150 km from Mumbai and another near Pune to serve western and southern Maharashtra. MIDC has suggested sites at Mahad, Ranjangaon, Tembhurni and Kurkumbh industrial estates. However, the company is yet to spell out the plant capacities which will be done after site selection.

Coke will require 30 acres of land at each site in addition to 2,500 cubic meters of water per day and 1 MVA power supply. The setting up of these plants will create direct employment for nearly 150 people in each facility.

These two bottling units will be an addition to Coke's established bottling infrastructure comprising 52 plants, seven package sizes and a portfolio of eight strong brands. The parent company has already made a commitment to invest Rs 2,971 crore ($700 million) in the Indian business of which Rs 1,071 crore ($250 million) have already been put in.

According to company data, the Coke brand has grown 48 per cent, Thums Up by 33 per cent, Limca by 23 per cent and Fanta by an unbelievable 70 per cent. Thums Up acquired the macho image, Fanta was the fun drink and Limca was for any one who was taking a breather. Coke was the mother brand which had built the foundation for others.

The company is believed to have identified four brands--Coca Cola, Thums Up, Fanta and Limca--as national brands. Analysts said that Coke was now way ahead with an overall marketshare of nearly 70 per cent and has outpaced its closest rival. Coke, despite a strong brand portfolio, does not expect to do more than 128 million cases by December.

The company has chalked out a comprehensive production and market strategy with a view to sell one billion cases by 2006.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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