Coca Cola's power move

1947 
India's Independence

1950
CC established bottling plant in New Delhi.

Obstacle:
Independent Indian govt.'s plan for socialism meant that local industries were supported at the
expense of foreign companies.

Coca Cola set up a distribution network across the country while India was still recovering from
the Indo-Pak war.
As successive govt.'s leaned towards left, politicians were against CC. The fact that CC was more
accessible to the villages than safe drinking water was a matter of great concern.
90% of villages had access to CC.
Only 10% had access to safe drinking water.
CC was an American company and was also deeply entrenched in Indian society. Hence, it would
be very difficult to overthrow the soda giant without there being a very severe crisis.

mid 1970's
India was on the brink of a revolution. Following the 3rd Indo-Pak war and the almost dictatorial
control of Indira Gandhi, the then Prime minister of India, civil unrest against the socialists was
growing out of control. Nationwide strikes as well as political assassinations were becoming the
norm.
A state of  National Emergency was issued by PM Indira Gandhi between 1975-1977.
The socialist govt. took this as a chance to bring down CC and enacted a law which prevented
foreign companies from holding more than 40% shares in any businesses in India.

CC was in a dilemma:
If it stayed in India, it would have to give up ownership as well as reveal it's secret recipe so that
CC could be made locally instead of importing ingredients.
CC and 50 other American companies had to leave India in 1977.

CC was replaced by local companies such as Thums Up, RimZim, etc.

Sprite, another American company, was replaced by Limca, Citra, etc.

1991
Socialists lost their grip on India
1993
CC reentered India
CC purchased Limca, Thums UP, RimZim and Citra, thus gaining 50% shares.

Present
CC has 60% shares
It's biggest competitor, Pepsi, has 35% shares.