The Hindu : Coke plans tender coconut water project

Online edition of India's National Newspaper
Sunday, Jan 12, 2003

Southern States

Southern States - Kerala

Coke plans tender coconut water project

By Our Staff Reporter

PALAKKAD JAN. 11. The soft drink giant Coca-Cola is actively considering to put up a tender coconut water manufacturing unit in Kerala if ''right environment, technology and location are available.''

Addressing a press conference here today, Deepak Mehrotra, Regional vice president, Nantoo Banerjee, director (Communications), Morris Wilson, general manager (Kerala Operations) of the Hindusthan Coca-Cola Beverages Private Limited and R.N. Athawale, emeritus scientist of the National Geophysical Laboratory, said that the company planned more investment in Kerala.

It would be investing $100 million in India this year. Out of this $ 45 million will be invested in four Southern States. Of this a substantial share will come to Kerala.

They said that the company would expand its existing production units and set up additional categories. The tender coconut water plant is one such project.

Mr. Deepak Mehrotra said the tender coconut plant could be set up in the existing Coca-Cola manufacturing unit at Plachimada in Palakkad. But other States are also trying to get this project as it would help its coconut farmers.

On the availability of high quality sweet tender coconut water in Kerala, Mr. Mehrotra told The Hindu that the company was actively considering the project here because of its superior quality. He declined the specify the total volume of the investment in the project since its technology was not yet finalised. Asked whether the company would present the project at the Global Investor Meet (GIM) in Kochi Mr. Mehrotra said a high-level delegation of the company would be attending the meet, but at this stage, the company was not in a position to announce specific projects, he said.

The company authorities said it had set up the Palakkad unit "three years ago at the invitation of the LDF Government in Kerala. We agreed to the Government's suggestion to set up a plant in a backward area in the State. The location of the present plant (Plachimada) is one of the sites suggested by the government. We got the necessary licence for it from the State Government on February 29, 2000, within months of our dialogue with the State authorities. We were very pleased with the speed at which the state administration granted us the licence. It only showed how keen the Government was in our project. The Government promised adequate water and power supply to our plant. But they did not fulfil the promises. We have deposited Rs.50 lakhs for high-tension power line but it is yet to come. The company is running on generators. We have also asked for surface water. But nothing was done so far,'' they said.

``There was no limitation on us for drawing water by our plant. Because, there is no shortage of ground water in this region. We have so far invested around to $16 million just in two years. This has helped create over 5000 jobs, directly and indirectly. Over 500 local families earn their livelihood from this plant. Nearly, 24,000 self-employed people in the State are retailers of our products. We are one of the major taxpayers to the exchequers from this state - nearly Rs.30 crores, in the current financial year'' they said.

They refuted the allegations that because the company is drawing ground water there is depletion of it in the area affecting the local people.

"We have been consciously implementing and promoting water harvesting programmes in and around our plant to help recharge the ground water table in the vicinity. Although, Kerala receives good rainfall and two regular monsoons a year, much of the monsoon water get wasted and drained out into the sea. We play a major role in the promotion of rain water harvesting projects in the country.''

``Unfortunately, a section of the people, for reasons best known to themselves, has lately been making frivolous allegations against our unit saying that we have sunk 600 bore wells in the plant while we have only six. They also allege that our plant has been responsible for the deterioration of water levels and water quality, thus damaging the ecology. The truth is that the ground water in the area occurs at shallow depths in the range of 6-9 meters. The water quality has been found to be by and large fresh and potable. No significant impact on the ground water regime is sighted. There is nothing to suggest that the drying up of neighbouring wells is because of our operations'', they said.

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