Beverage company Coca-Cola Co. (NYSE:KO) today said that it plans to boost its investment in India by another $3 billion over the next eight years. Coca-Cola is increasing its investment in India as it looks to expand its operations in the country.
The $3 billion investment comes on top of a $2 billion five-year investment plan Coca-Cola announced back in November. The announcement from Coca-Cola comes at a time when the Indian economy is struggling. Recent, data showed that growth in Asia’s third-largest economy slowed to 5.3% in the first quarter of 2012. But, Coca-Cola’s investment shows that the company is bullish on India in the long-term.
Speaking to reporters, Coca-Cola Chairman and CEO Muhtar Kent said that the company increased the investment in India because it thinks there is potential here to stay ahead of the curve. The Indian beverage market is estimated at $10 billion.
Coca-Cola is also boosting its investment in India as it looks to gain market share from PepsiCo (NYSE: PEP). The company currently lags behind PepsiCo in India.
KO stock opened marginally lower in trading today. At last check, the stock was down 0.72% to $74.23. KO gained 6.12% so far this year, outperforming the S&P 500.
