Hindustan Coca-Cola Beverages (HCCB), a bottling arm of the soft drinks giant, has signed a memorandum of understanding with the Gujarat government to invest INR3,000 crore ($360m) in the Indian state of Gujarat.

The investment will cover the building of a facility in Rajkot, which is expected to begin operations in 2026. According to a company press release, the planned facility will produce juice and carbonated drinks and will be the third to be built in Gujarat – joining the existing facilities in Goblej and Sanand.

Himanshu Priyadarshi, Chief Public Affairs, Communications and Sustainability Officer at HCCB said the investment in Rajkot underscores the company’s “long-standing relationship with Gujarat”. He added that the expansion “reflects HCCB’s commitment to the state’s potential and to enhancing its business operations and community engagement in Gujarat.”

The soft drinks sector in India recorded annual volume growth of 19.8% in 2022, GlobalData research shows, due to growing on-premise consumption and more tourists coming to the country. It registered strong volume and value growth in 2022. Carbonates are the second most consumed type of soft drink.

Between 1 April 2022 and 31 March 2023, HCCB recorded record profits of $97.16m, up from $45.75m recorded a year before.

Overall, Coca-Cola remained the most active beverage greenfield investor between Q1 2019 and Q3 2023, according to GlobalData’s FDI Projects Database. Around 90.9% of Coca-Cola’s investments were in the soft drinks subsector between Q1 2019 and Q3 2023.

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By GlobalData