HOW COCA- COLA LOST INDIA AND WON BACK!

• Coca- Cola entered the Indian markets right after its Independence in 1947. This was a great opportunity grabbed by Coca-Cola
• At that time, Indian Government was determined to promote home - grown brands as Indian markets were not really prepared to compete in International markets.
• However, Coca-Cola managed to establish in India before the government took any action.
• Coca -Cola's timing was perfect. While India was recovering from the past conflicts, Coca-Cola was busy setting up its distribution network in India.
•  Few years later, Pepsi was denied entry into the Indian markets whereas Coca-Cola had already captured one of the world's biggest markets: India
• Soon, times changed, Indian government was being protective as Coca-Cola became more accessible in India than water.
• Only 10% of Indian villages had safe drinking water. However, 90% had access to Coca-Cola. This was a bad statistics for a protective government.

• In mid 1970's Coca- Cola faced a crisis in the form of a law that did not allow foreign companies to have more than 40% holding of any business in India. This posed a huge threat to Coca- Cola
• Coca-Cola was not ready to give up its ownership. Also, it would mean sharing their secret recipe of the fizzy drink to Indians and producing the drink in India itself. Thus, Coca-Cola ultimately left India in the year 1977, alike many other foreign companies
• This created a pool of opportunities for local businesses that came up substitute soda drinks. The government too stepped into fund these businesses. However, when Indian government took up Liberalization, Coca-Cola made a comeback.

• In 1993, Coca Cola entered India and acquired the top firms of the Industry that had emerged in its absence. With this, Coca-Cola had a 50% market share in its very first days in India in the second innings.
• This is how Coca-Cola managed to overcome the political obstacles wisely. It dominates Indian markets with Pepsi as a strong competitor.
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