Question

Reason for exit of coca cola in iddia

Answer 1

Coca Cola came into the country in the late 1950s, when it used to be free at seminars to promote its taste and thus create a demand. By the 1970s, it had established itself in the Indian market. It was kicked out of the country in 1977, due to its refusal to accept Indian laws under which had to dilute its ownership stake in its Indian subsidiary to 40%. Since the 1990s, Delhi’s rulers have changed policies, and decided to allow corporate armies to trample over the country’s honour and dignity. So, Coca Cola too re-entered the country, in 1993. Once again it refused to comply with any of the conditions imposed on it by the government, such as diluting 49% – yes, only 49%, and not majority holding – in its bottling operations to resident Indians. The government bhaktifully bowed: in 2003, it diluted the conditions imposed on Coke.