Coca-Cola suspends production at three plants in India

Hindustan Coca-Cola Beverages (HCCB), the bottling unit of Coca-Cola India has halted production at three of its manufacturing facilities in India.

The beverage manufacturer shut down the plants on the basis of their ‘long-term economic viability and market demands of the products’, reported PTI.

The firm halted production at the plants in Kaladera near Jaipur, Rajasthan, Brynihat, Meghalaya, and Vishakhapatnam, Andhra Pradesh.

The move is estimated to affect 300 employees.

According to the source, all operations except production are being carried out at these facilities.

A HCCB Private Limited (HCCBPL) spokesperson was quoted by the news agency saying: "Like with any other manufacturing organisation, we are going through a process of consolidation where new state-of-the art facilities are being built and existing production capacities are being optimised.

"These decisions are taken in keeping with plant capacity utilisation considerations, based on the market demands and projections."

Social activists demanded the closure of the Kaladera plant due to the firm’s alleged contribution to the depletion of groundwater and pollution of nearby water bodies, reports The Hindu Business Line.

The HCCBPL was quoted by PTI saying: "With regard to our Kaladera plant in Rajasthan, while we have currently suspended manufacturing, we are continuing with all other operations at Kaladera.

"We also retain the licence to produce at this plant, which is testimony to the fact that should there be a change in demand and volume, we may utilise this latent capacity at the Kaladera plant."

HCCBPL operates 54 plants in India, of which 24 are owned by the franchise and 25 by the company, while five of them are co-packers.

In 2014, the company closed its facility in Mehdiganj, Varanasi, due to issues with the State Pollution Control Board.

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Image: HCCB owns 54 plants in India. Photo: courtesy of the Coca-Cola Company.