Hindustan Coca-Cola Beverages lines up 1,127 crore for new unit, expansion in Andhra Pradesh

New Delhi: Hindustan Coca-Cola Beverages (HCCBL) will invest ₹1,127 crore in Andhra Pradesh to set up a new manufacturing unit at Vizianagaram and expand an existing unit in Chittoor, sources in the state government said.

With the manufacturing facilities-one in north Andhra (Vizianagaram) and the other in the south (Chittoor)-the largest bottling partner of Coca-Cola in India expects to cover the increasing demand for beverages in southern India across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and adjoining markets.

Andhra Pradesh's State Investment Promotion Committee approved the investment plan at its meeting on Tuesday, the sources said.


The HCCBL investment was at the heart of a political slugfest between the YSR Congress Party and the ruling Telugu Desam Party, with the opposition claiming that ₹1,199 crore worth investment by Coca-Cola was withdrawn from Andhra Pradesh.

A senior official, who did not wish to be named, told ET: "The expansion plan of Coca-Cola had been postponed due to leadership change within the company. Hindustan Coca-Cola Beverages Ltd, in fact, is now expanding and also investing in a new project in the state."

The company will invest ₹842 crore for the new unit in Vizianagaram and ₹285 crore for expansion at Srikalahasti in Chittoor, the sources said.

The manufacturing unit in Vizianagaram will have three bottling lines with a capacity of 18 million cases per year: for carbonated soft drinks in big and small pack sizes, a juice line and another for tetra packs. In the second phase, the company will set up two bottling lines with a capacity of 12 million cases per year.

At Chittoor, it will add one packaged drinking water bottling line and two carbonated soft drink bottling lines.

The expanded facility will manufacture products under six brands: Coca-Cola, Thums Up, Sprite, Fanta, Limca and Kinley water. The proposed expansion will be undertaken entirely within the existing plant premises, and no additional land acquisition is envisaged.