Coca-Cola to expand in India

As part of its $5 billion investment commitment in India, $42-billion American beverage giant Coca-Cola will set up its 20th manufacturing unit in the country, at an investment of Rs 450 crore.

Located in Sanand, Gujarat, the first phase of the green field facility is scheduled to start operations in the first quarter of calendar year 2018. Hindustan Coca-Cola Beverages (HCCB) CEO Christina Ruggiero said, “The new plant takes inspiration from the unit here in Bidadi, with some improved efficiencies,” adding that the company is also investing in improving productivity at all its plants in the country.

The company on Wednesday announced that it has entered into an agreement with Atria Solar Power, to procure 30 megawatts of solar power annually. With this agreement, up to 85% of HCCB’s total electricity requirement across its two factories in Bidadi Industrial Area will be met through solar power.

As per the agreement, Atria Solar Power will supply power to HCCB at Rs 6 crore per megawatt, over 15 years. Christina added, “Coca-Cola had made a commitment of sourcing renewable energy by 2020. The development will help us realise the vision by 2018.”

The company also inaugurated its CNG boiler, which will get its supply from GAIL. Both the interventions will help the company reduce 24,500 tonnes of carbon emission.

Reiterating Coca-Cola CEO James Quincey’s announcement in India last year, Christina said the company is investing $800 million in the procurement of fruit pulp and concentrate over the next five years.

Indicating that a new juice brand many be in the pipeline, she said, “With several products in the pipeline, we may even beat the target investment.” The company plans to relaunch its dairy-based beverage brand VIO in India.