Coca Cola India is likely to invest around Rs 200 crore in the next financial year.
Sanjiv Gupta, deputy division president, said: "The 2003 summer season would be the test year for the company as the investments needed to make the business take-off and become self-sustaining have been put in place."
The investments could lead to an 80 per cent growth for some product types in the season if demand took off in line with expectations. Sales would be driven by smaller packs and other innovative packaging and pricing initiatives.
The focus on smaller packs and aggressive pricing would, however, overshadow lines like cans and vending machines, Gupta admitted.
The Rs 5 beverage packs for aerated drinks and the smaller helpings of premium Georgia hot beverages were expected to relegate these product serving categories to less than 1 per cent of total sales.
"The demands of the supply chain alone would be huge -- the requirements in terms of glass bottles, plastic crates and commercial vehicles should constitute a appreciable percentage of the total demand in the respective sectors," Gupta said indicating the investments to be put in for the season.
The glass and plastics segments have been suffering from poor demand for some time now, so the investments should lead to improvement in capacity utilisation, he added.
The company has invested in 30 lines between September 2002 and March 2003. The bulk of the investment has been in Andhra Pradesh, where Coca Cola has added six lines.
Gupta said, in the eastern region, the company has invested around Rs 60 crore (Rs 600 million). The investment has been made in adding new lines in Taratola and Dankuni in West Bengal to increase capacity. A new Sunfill, the powdered drink, plant has also been set up in the state.
Gupta said, the company was also looking at a setting up a new facility in north Bengal with an investment of Rs 30-40 crore (Rs 300-400 million), depending on volume projections.
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