Coca Cola Suspends Manufacturing at Three Indian Plants

Coca Cola suspends manufacturing at three locations in India citing lack of economic viability.

Coca Cola India’s bottling arm, Hindustan Coca Cola Beverages, has suspended manufacturing at three locations in India citing an absence of “long-term economic viability”, which could affect at least 300 employees.

The company has suspended manufacturing at Kaladera near Jaipur (Rajasthan), Vishakhapatnam (Andhra Pradesh) and Brynihat (Meghalaya).

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.

a source to PTI

When contacted, a Hindustan Coca Cola Beverages Pvt Ltd (HCCBPL) spokesperson said:

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.

HCCB has 54 plants in India of which 24 are franchise plants, 25 are company-owned and 5 are co-packers.

Coca Cola India sells a range of soft drinks including Coca-Cola, Thums Up, Fanta, Limca, Sprite, and Maaza, among others.

In 2012, the Atlanta-based beverages major had announced intention to invest about Rs 28,000 crore (USD 5 billion) along with its partners in India by 2020 in various activities, including the setting up of new bottling plants.