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Coca-Cola India shuts three facilities

Published 12 February 2016

Hindustan Coca-Cola Beverages, the bottling unit of Coca-Cola India, has halted production at three facilities in India due to “long-term economic viability” issues, a move that comes ahead of the summer season when the demand for soft drinks is generally high in the country.

coca-cola LOI

This decision is said to have impacted 300 jobs.

The company has stopped production at Kaladera plant near Jaipur in the state of Rajasthan, Vishakhapatnam in the state of Andhra Pradesh and Brynihat in the state of Meghalaya.

The facilities have been facing local resistance over depletion of groundwater as well as lack of demand.

A source told PTI: "The decision to close down a plant is a business decision taken on the basis of its long-term economic viability and market demands of the products being manufactured at that particular plant.

"Accordingly the decision to suspend manufacturing at these locations including Kaladera was made. At these locations all operations except for manufacturing is continuing."

Hindustan Coca-Cola Beverages Pvt Ltd spokesperson told The Hindu: "Like with any other manufacturing organisation, we are going through a process of consolidation where new state-of-the art facilities are being built and existing production capacities are being optimised.

"These decisions are taken in keeping with plant capacity utilisation considerations, based on the market demands and projections.

"With regard to our Kaladera plant in Rajasthan, while we have currently suspended manufacturing, we are continuing with all other operations at Kaladera.

"We also retain the licence to produce at this Plant, which is testimony to the fact that should there be a change in demand and volume, we may utilise this latent capacity at the Kaladera plant."

Meanwhile, Coca-Cola plans to introduce a new 'juice with fizz' drink this month, a move that comes a year after Indian Prime Minister Narendra Modi had urged the multinational soft drinks companies to add fruit juices to their drinks in order to help the country's farmers boost sales of their produce.

Image: The decision to shut three plants is said have impacted 300 jobs. Photo: Courtesy of The Coca-Cola Company.