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Home--News
Cola Major Packing Bags from Jharkhand
B Vijay Murty
Hindustan Times
April 18, 2007
Jamshedpur: The Beverage industry in Jharkhand is not having the best
of times. Days after closing down production at its Jamshedpur bottling
plant, Hindustan Coca Cola Beverage Pvt Ltd is reportedly preparing
to hand over the leased land back to Adityapur Industrial Area Development
Authority (AIADA).
Highly-placed sources informed HT that the company has already given
Voluntary Retirement (VR) to all its operators in Jamshedpur, while
several administrative staff have been transferred to other bottling
plants across the country.
"They are in the process of packing up. We have reports that the company
will return the land to us," sources in the AIADA said.
Coke consumed in Jharkhand is now supplied from Rourkela, Bhubaneswar
and the bottling plants in Bihar.
AIADA secretary HN Ram had earlier said a notice was sent to the company,
asking it to return the leased land 'as it was not in use for production
purpose.'
"We have learnt that the company is violating norms set for land use.
A notice has been served to the company officials posted here. As
per the rules, we issue three notices to a company before initiating
further action. So far, we have served only one notice on the unit,"
said Ram.
Sources, however, said the company would probably not wait to be served
the notices. There are several legalities, including fate of infrastructure
build up on the plot by the company, which have to be discussed before
the land is finally returned.
When contacted, the company officials said they were yet to receive
the AIADA notice. "Once we receive the notice, we would act lawfully,"
they said.
But, what has led to the cola major winding up production in Jharkhand?
"High cost of production, and negative propaganda against the brand
have taken its toll," sources said, adding, "The Yoga Gurus of late
have targeted Coke, bringing down its sales considerably."
Basant Kumar, spokesperson of the Pepsi bottling plant at Adityapur,
also admitted that conditions for the beverage industry in Jharkhand
were not favourable. "Unlike Coca Cola, we are not closing down, but
the situation on the whole is not favourable."
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