The document discusses Coca-Cola's history and operations in India. It describes how Coca-Cola was introduced in 1885 and now operates in most countries, selling over 12,500 drinks every second with $15 billion in annual profits. In India, Coca-Cola was kicked out in 1977 but returned in 1993, acquiring leading brands to gain a 66% market share. However, the company has also faced criticisms over unethical practices like excessive water usage, pollution from plants, and products containing pesticide levels above standards. The document examines both the positive impacts of Coca-Cola's investments and employment, and the negative health and environmental effects.

1. THE COLA CONUNDRUM
Presentation by: Ankur Jain (MBEXE07130004)
Rakesh Kumar (MBAEXE07130021)
•Introduction
•Indian Context
•Business Practices
•Conclusion

2. COCA-COLA’S HISTORY
Coca cola was concocted by pharmacist
John Pemberton and was first introduced as
a health tonic in Atlanta , Georgia in 1885.
The company makes an annual profit of
approximately US$15 billion and has a huge
marketing budget of US$2million per
annum.
The company operates almost in all
countries of world selling as many as
12,500 drinks every second.
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3. COCA-COLA IN INDIA
Coca-cola was India’s leading soft drink unit in
1977 when it was ‘kicked out” by Government of
India after it refused to reveal its secret formula
of coca-cola and dilute its stake in its Indian unit
as required by the Foreign Exchange Regulation
Act.
 On its return in 1993, It took over ownership of
the nation’s top soft-drink brands. It bought out
for Rs 3500 million a clutch of popular Indian soft
drinks brands including Thums up, Gold spot,
Limca, Citra and Maaza which enabled them to
get 66% market share.
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4. COCA-COLA IN INDIA
The vast Indian operation comprises 25 wholly
company owned bottling operations and another
24 franchisee owned bottling operations.
 In India the company directly employs
approximately 6,000 people and indirectly
creates employment for more than 125,000
people in related industries though their vast
procurement, supply and distribution system.
These facts speak that Coca-Cola is an integral
player in the Indian economy.
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5. CODE OF BUSINESS CONDUCT: This code serve
as guide to company`s action, advancing and
protecting core values of Honesty, Integrity,
Diversity, Quality, Respect, Responsibility and
Accountability.
ENVIRONMENT POLICY: It promises to operate
company`s facilities taking into account all
applicable environment safety and health rule.
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6. QUALITY OBJECTIVE: Keeping high quality
promise in marketplace is their long term
business objective.
Company promises to provide consistently
attractive return to the owners and to their
business.
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7. Good corporate citizenship for long term
business success.
Fair employment practice with employees with a
commitment to human right, at workplace.
Employ labor under legal working age and
protection from unlawful abuse or harassment.
The company expects suppliers to conduct
business in a way that protect and preserve the
environment.
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8. UNETHICAL PRACTICES
The company is not listed on stock exchange.
Unlisting enables flexibility to company to hide
their unethical decisions and wrong practices.
The company is accused of adopting unethical
marketing practices such as offering
product/services against the interest of society
and targeting inappropriate audience like
children.
The contamination by high level of cadmium,
lead and chromium found in effluent sludge of its
bottling plant was much more in excess to
acceptable standards.
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9. EXCESSIVE WATER USAGE
 In India many states protested that coca- cola i
uses three times as much water to produce a litre
of coke. It has been reported that farmers are
facing acute shortage of water causing crop
failure. Activists alleged that states like Uttar
Pradesh, Kerala, Rajasthan, Maharashtra are
facing severe shortage of water around
establishment of coke bottling plant.
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10. PESTICIDE CONTROVERSY (2003-2006)
 According to CSE (Center for Science
Environment) coca-coal contain toxins including
lindane, DDT, Malathian, chloropyrophys etc.
Pesticide can result into cancer and breaking
down of immune system.
About 57 samples were collected from 25
bottling plants from 12 different states and it was
found that drinks were containing 24 times
higher amount of pesticides that of allowed.
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11. DEFENSES CLAIMED
Coca-Cola angrily denied allegations that their
products manufactured in India contained toxin
levels far above the norms permitted in the
developed world.
Coca-Cola claimed that their soft drink is safe in
every aspect and up to Indian standards.
There are other food stuffs in market which
contain much higher level of pesticide.
In the end they managed to have “clean chit”
from TERI (The Energy and Resource Institute).
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12. CONCLUSION
 Every coin has two faces and results or
conclusion can be drawn from both aspects.
 it very much depend on which side you choose
to present your answer.
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13. POSITIVE ASPECTS
Providing sufficient amount of taxes.
Foreign investment (FDI).
Employment opportunity.
Consumer satisfaction.
NEGATIVE ASPECTS
Health issue.
Pollution caused by its plants.
Unnecessary use of water causing
depletion of potable water.
Unnecessary product.
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14. Any question?
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