Coca Cola's India plans
- Which overseas markets to enter
- Timing of entry
- Scale of Entry and Strategic Commitments
The decision on which markets to enter is based on assessment of a location's long-run profit potential, which in turn is a function of the size of the market, purchasing power of consumers, the likely future purchasing power of consumers; and, the need to balance benefits, costs, and risks associated with doing business in a country, which again, is a function of economic development and political stability in market places around the globe.
On both these factors, India is poses a huge potential for Coca Cola and its beverage products. But there are roadblocks too, while operating in India. Indians drink less soda per capita than people in just about any other emerging market. In spite of this Coca Cola is willing to look at the long term and so is pushing in greater investments. The company has already invested over $1 billion (Rs 4,100 crore) in India and is aware that global volumes growth would be tough if it doesn’t make the right moves in India. It plans to invest $250 million (Rs 1,025 crore) over the next three years in coolers and plants, while Coke’s bottlers are expected to chip in another $100 million to ramp up infrastructure and this $250 million is just the start.