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Investments for building long-term presence in India remain intact: Coca-Cola
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SME Times News Bureau | 08 Jul, 2020
Beverage major Coca-Cola's long-term investment plans in India remain
intact despite coronavirus-induced economic turbulence, a key company
executive said.
Accordingly, the beverage major is expected
to complete the earlier announced $5 billion investment this year for
creation of retail infrastructure, bottling plants and introduction of
new products, amongst others.
Since its re-entry into India in 1993 till 2011, Coca-Cola had invested $2 billion in the country.
Additionally,
the company has committed an investment of $1.7 billion towards
creating a 'Fruit Circular Economy' to aid the Indian agri-ecosystem
till 2023.
"We continue to invest in big bets and strategic
priorities that will help us emerge stronger. Our investments of
building a long-term presence in India remains intact," T.
Krishnakumar, President, Coca-Cola India & South W est Asia, told
IANS.
"As the situation evolves, we will flex our business models
to adapt to the new normal to deliver long-term shared value in India."
On
the Covid-19 induced economic turbulence, Krishnakumar said the
pandemic's ongoing evolution has led to uncertainty around its ultimate
impact.
"Hence, any immediate outlook may not be complete or
conclusive... Covid-19 has obviously impacted all businesses
significantly. We are, however, witnessing improvement in both consumer
sentiment and consumption," he said.
"While away-from-home
consumption in channels like travel, restaurants, entertainment and
hospitality may take longer to come back to normal, 'At Home'
consumption is robust and growing."
In terms of demand,
Krishnakumar expects a faster bounce-back in rural consumption on the
back of reverse migration, better monsoon, improved agricultural income,
and government support.
According to him, a change in consumer behaviour and consumption patterns have been witnessed.
"While
consumers are conscious of what they are buying and dependent on what
is available, there is a strong trend to purchase trusted brands," he
said.
"Coca-Cola's heritage and its relationship with the
consumer over the years has helped us continue to be a part of the
consumer's basket even during this pandemic."
Furthermore, he noted a change in channel choice of consumers.
"Grocers,
who have been the lifeline during the lockdown, are likely to continue
to be a stronger channel, along with the newly-emerging chemists who are
unaffected by the lockdown," Krishnakumar said.
"Innovative ways to reach the consumer along with affordability will be important to drive the demand."
Besides
strategy to deal with the pandemic, the company has also committed an
initial support of over Rs 100 crore for helping the healthcare system
and communities to combat COVID-19 and contain its spread.
At
present, it has activated more than 50 locations across 10 states in
partnership with its bottlers to support the hydration needs of the
underserved communities through distribution of beverages during the
lockdown period.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
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58.85 |
56.85 |
As on 13 Aug, 2022 |
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