Coca-Cola to close its Plants in India

Coca-Cola to close its Plants in India

Hello and welcome back to Garish’s business and jobs blog, hope you enjoy my next article.

I wanted to discuss the fact that Coca-Cola may be due to close down all of their manufacturing plants in India. The committee on goods and services tax have proposed a 40% tax on aerated drinks. If the government go ahead and agree terms of the proposal then the drinks giant fear they may have to pull out of production in India entirely.

This would have a huge impact as there are currently no less than 56 factories across the Nation. This proposal will surely not only affect coca-cold but due to their wide-spread presence in India but will prove far more damaging to them than any other brand. Except maybe excluding Pepsi who are another major player in India.

It will have a ripple effect on the whole eco-system though remember. Any distributor of aerated bottled or canned drinks will be significantly affected.

The current taxation is 18%. India’s consumption is already one of the lowest in the world and recent smaller government tax increases showed what huge implications this could have. After only a small increase in prices after the last tax increase, consumption diminished drastically so imagine what could happen with the proposed tax increase. You can see why Coca-cola are looking at taking thsese measures.

One thing you can say though, even less people will be wasting their money on over-sugared drinks so that’s one bonus. I’ve never been a fan of theirs but I sympathise on a business level.