More reports on: Government policies

Cola giants get big boost in Andhra Pradesh

03 November 2016

The Andhra Pradesh government is offering the coal giants all incentives available under the state government's policy on promotion of food processing industries for setting up operations in Visakhapatnam district.

While Pearl Beverages Limited, which is a bottling partner for PepsiCo, had expressed interest in setting up a plant in the district earlier, Coca-Cola is going ahead with plans for a manufacturing facility in the district.

The state government is making available all incentives under the food processing policy to Hindustan Coca-Cola Beverages Private Limited (HCCBPL) which is expanding manufacturing operations in Andhra Pradesh with a greenfield manufacturing facility in Visakhapatnam and Nellore.

At present, HCCBPL has a bottling unit near Muralinagar in the city.

A government order issued on Wednesday by the industries and commerce department decided to extend incentives as per AP Food Processing Policy 2015-20 to the aerated drink manufacturer as a special case as it is a mega project with an investment of more than Rs500 crore.

The GO said HCCBPL has expressed interest in setting up greenfield manufacturing facility in 100 acres of land each at Nellore and Visakhapatnam districts with a total investment of Rs2,225 crore and to create employment for 1,102 people.

The plants will manufacture all types of carbonated beverages, juices and packaged water, the government order added.

In June this year, the industries and commerce department had given permission to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for allotting 100 acres at Krishnampalem industrial cluster in Visakhapatnam to HCCBPL for setting up a non-alcoholic beverages plant. According to the GO issued in June, the state government said the plant by HCCBPL in Visakhapatnam would entail an investment of Rs1,375 crore and would be developed in a period of 10 years in three phases.

In April this year, Pearl Beverages Limited, which is one of the largest bottling partners of PepsiCo India, was accorded incentives under the AP Food Processing Policy 2015-20 when it had planned to invest Rs 100 crore in a phased manner for purchase of land, building, plant and machinery at Atchuthapuram industrial estate. The proposal by Pearl Beverages Limited claims that its investment will provide employment to around 400 persons directly and 800 persons indirectly.

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