Local bottlers urge Coke's ouster
30 June 1998 10:35 IST Coca Cola is in trouble in Goa. The new mega plant of the multinational coming up in the tourist state has been vehemently opposed by over 250 small bottlers, expressing fear that it would wash out the local soft drink industry.
They have urged local Congress government to follow suit of West Bengal's CPM-led left front government, by not allowing the Atlanta-based multinational to set up its plant here in order to save interest of the local entrepreneurs.
Coca Cola South West Ltd is setting up a Rs 30 crore plant at Verna, with a production capacity of 60,000 crates per day. Around 25 acres of land has been allotted, where it would dig bore wells to extract 32 lakh litres of water every day, besides consuming 2000 KVA of power.
"Coke will eat into our 65 per cent market by resorting to price cutting and monopoly schemes", fears Rajesh Naik, chairman of the Goa Small Scale Bottlers Association. Since its local bottler Goa Bottling Ltd shifted over to Pepsi in November last, Coca Cola has been importing 15,000 crates every day, spending Rs 25 on freight charges and Rs 10 on sales tax behind every crate.
Inspite of this, Coca Cola has been offering 40 per cent discount on crates and further discount of Rs 16 behind every crate to their monopoly outlets. With its plant in Goa, they fear the multinational would offer further discounts since it would be off transport cost besides 12-year sales tax exemption Goa offers to all new industries.
The government is also silent on other issues the bottlers have raised, including 50,000 people working in local industry becoming jobless, bringing down underground water table of Verna plateau and consumption of power when there is acute power shortage here. The local bottlers hold annual market of around 50 lakh against Coca Cola's 15 lakh market.
