Mumbai: India has the potential to become the third-largest market for Coca-Cola Co., said chief executive officer James Quincey, who is on his first visit to India after taking over the top job at the world’s largest beverage maker in May.
“The most immediate challenge for KK (T. Krishnakumar, president, Coca-Cola India and Southwest Asia) is let’s become No. 5 in the foreseeable future. In the end, my vision for India is that it will be one of the top three markets in the Coke system,” said Quincey.
In 2012, Coca-Cola had announced plans to invest $5 billion in India by 2020. “These investments are on track,” said Quincey, adding that the company will continue to invest in the country.
India became the sixth-largest market by volume for the maker of Coca-Cola and Sprite in 2015 after overtaking Germany, according to a company spokesperson. The company does not disclose contribution to revenue by region.
The US, Mexico, China, Brazil and Japan are the top five markets for the company in terms of volume, contributing 50% of worldwide unit case volume, according to the company’s annual report for 2016. The US contributed 19% of overall volume while the remaining four regions contributed 31%, said the same report. Individual breakup of volume contribution to the parent is not publicly disclosed.
Quincey is optimistic about India’s potential even as the company had a rough few quarters at the end of last year and the beginning of this year. The implementation of goods and services tax (GST) and demonetization hit sales in the country in the first half of the calendar year, according to a statement on its website. In 2016, India operations registered a mere 4% volume growth, according to its annual report.
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