Coca Cola Plans 40 Billion Dollar Investments in China

August 19 00:00 2011

New York, August 18 (thealphareporter.com) – Coca Cola (KO: NYSE) already has massive operations in China, which has rapidly grown in the past few years to become the second largest economy in the world only behind US. Cola sales in China have also been skyrocketing at a similar pace. Virtually non-existent a few years ago, China today accounts for 7% of the Coca Cola’s global sales. Minute Maid is currently China’s number one fruit drink. It is the third biggest market for Coca Cola behind US and Mexico. Coca Cola already operates 40 plants in China and also employs close to 48,000 people.

The Atlanta, Georgia based Coca Cola has its eyes set on bigger goals. Muhar Kent, Country head of Coca Cola China has ambitious goals of doubling the sales by 2020 making it Coke’s largest market worldwide. Coca Cola management is also putting their money where their mouth is and have chalked out plans to invest $40 billion in a massive capacity building operation planned over the course of next three years.

There have also been plans to list Coca Cola on Shanghai Stock Exchange. This will help Coke raise funds and also aid China’s goal of making Shanghai an international financial centre. But the regulations are still to be worked out. Right now Coca Cola cannot list on the Shanghai Stock Exchange, but hopes to do so in the near future.

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