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Coca-Cola Increases Investment In India to $5 Billion

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(Photo: Stock.xchng)
(Photo: Stock.xchng)


  • Coca-Cola adding $3 billion investment in India; has invested $2 billion in India over past 19 years
  • Coca-Cola trails rival Pepsi Co. in India
  • India represents $10 billion market and one of Coca-Cola’s top-ten markets

Coca-Cola Co., the world's largest soft drinks manufacturer, plans to invest $3 billion more than previous announced in its Indian division over the next eight years. In November, Coke announced it would be investing $2 billion, but decided to up its investment after growth increased in Asia earlier this year.

Prior to this, Coke invested $2 billion in India over the past 19 years.

Coca-Cola chairman and CEO Muhtar Kent told reporters: "Achieving continued sustainable, responsible growth in India is core to achieving our 2020 Vision of doubling system revenues in this decade."

Coca-Cola India trails rival Pepsi Co. and has been aggressively trying to increase its market share. For the first time since 2003, Coke cut prices trying to increase summer sales.

Despite trailing Pepsi, Coke has seen sustainable growth in India. The past 23 quarters have seen growth, with 17 of those in double digits. In addition, Sprite and Thums Up, a local cola brand, are India’s top-selling soft drinks, and its Maaza brand is its top-selling juice drink.

Coke expects sales to double by 2020.

India, Brazil and China Surging Markets

India is a $10 billion market and one of Coca-Cola’s top-ten markets. It is one of several surging markets that includes Brazil and China.

Net income from emerging markets was up 8% from 2011 for the first quarter, with growth in India at 20% and growth in China at 9%.

Growth in mature markets has remained steady. Despite the weakened economy, sales in Europe increased 4.4% and North American sales increased 2%.

Key Stats - Global Carbonated Soft Drinks (source: MarketLine)

  • In 2009, the world carbonated soft drinks industry grew 1.5%, reaching $187 billion in value. In 2014, it is predicted that the carbonated soft drinks industry will be valued at $209 billion globally for an increase of 12% over 2009.
  • In 2014, it is predicted that the carbonated soft drinks industry will reach a volume of over 197 billion liters globally for a 10% increase over 2009.
  • The largest sector of the global carbonated soft drinks industry is standard Cola, which accounts for nearly 42.5% of the total value of the industry.

By Melina Druga for
Melina Druga is an author and freelance journalist. You can follow her on Twitter @MelinaDruga .

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