New Delhi: Profits of Coca-Cola India, the local arm of the American beverages company, have increased by over 40% in the past four years, Venkatesh Kini, outgoing president for India and South-West Asia markets, said in his parting email to employees.
“In the past four years, we grew our volume by 176 million unit cases, our profit by over 40% and gained 8% share swing against our nearest competitor in sparkling, launched multiple new products and categories, and cleared the most recent audit with no major risk. However, I acknowledge that we could have achieved even more, and as your leader, I take full responsibility for any missed opportunities along the way,” Kini said in the e-mail on 28 April, a copy of which has been reviewed by Mint.
Kini took over as president for India and South-West Asia on 1 July 2013, and served in the position till 28 April.
Coca-Cola on 28 April announced that T. Krishnakumar will replace Kini. Kini will be in India with the company till the end of July for a “smooth transition”. Krishnakumar is currently chief executive officer and South-West Asia regional director of Hindustan Coca-Cola Beverages Pvt. Ltd, the company-owned bottling unit.
Also Read: Coca-Cola India names TKK Krishnakumar as president, Kini leaves
On 28 April, Kini said that he would move back to the US and look for opportunities outside Coca-Cola.
For the past few quarters, Coca-Cola has been under pressure in India, and globally. It has also announced plans to move to a lean organizational structure and build a “total beverages portfolio” tapping “emerging trends”. On 25 April, it announced that it would cut about 1,200 jobs as it expands its savings target amid falling demand for fizzy drinks globally.
Sales in India and south west Asia, which includes markets like India, Bangladesh, Sri Lanka, Nepal, Bhutan and the Maldives, “dropped by a low single digit” during January-March 2017, the company said at its global results announcement last week. During the same period last year, the company reported an 11% growth. During the full year 2015-16, its profit in India fell by about 6% while sales were flat.
Between 2012-13 and fiscal year ended 31 March 2016, Coca-Cola India Pvt. Ltd’s profits increased to Rs 474 crore from Rs 320 crore, and revenue from Rs 1,438 crore to Rs 1,757 crore, according to the company’s filings with the Registrar of Companies (RoC). Coca-Cola India Pvt. Ltd is the concentrate arm of the company. Financials of its bottling entities are reported separately.
In India, Coca-Cola has been increasing focus on non-carbonated beverages like Vio (milk-based), Zico (packaged coconut water) for the past couple of years. It announced in 2012 that it will invest $5 billion in India by 2020 for capacity enhancement among other things.