A new product category

Coca-cola along with other players in the market ventured into Packaged drinking water. In 2003 market for packaged drinking water was valued at Rs.1000 Cr. Brand Kinley Bisleri Aquafina Market Share 28% 40% 11%

Cos. Name Coca- Cola Parle Grp. Pepsi

COKE Kinley is produced in 15 plants , the major one being in Mumbai, delhi,goa,and Bangalore. In 2003, they planned to double the bottling capacity. Sells in various packs, 500ml to 25 ltrs. Price Rs. 6 for 500 ml Rs. 17 for 2 ltr.

PEPSI Aquafina is produced in six plants. It may be Co. Owned, franchisee operations. Contract packing Cos.

Other competing brands are: Bailley (Parle ), Hello ( Hello Mineral waters pvt. Ltd.), Pure Life ( Nestle ), Rail neer ( Indian Railways).

SOFT DRINK In the year 2002, coca-cola had 30 bottling plants with 56% market share. It had spent $840 mn to build distribution and infrastructure. Despite this the Co. Had a loss of around $ 480 mn.

But in 2002 , the Co. was ordered by the govt. to sell 49% of its shares to Indian investors as per the entry conditions laid down by the govt.in 1996 as mandatory. It was also suggested

to sell its shares within 5 years of operations but Coca-cola didnt made that upto 2002 and it was further expecting the govt. to raise the bar upto 2007, of which the govt. simply refused. Coca-cola even approached FIPB ( Foreign Investment Promotion Board ) for the approval but all in vain. Finally Coca- cola in February 2003 placed 49% of its equity from wholly owned subsidiary Hindustan Coca-cola Holdings Pvt. Ltd (HCCHPL) , worth $ 41mn in its bottling subsidiary Hindustan Coca-cola Beverages pvt. Ltd. ( HCCBPL ).