soft drinks sector attracts highest foreign investments

Wednesday, September 29, 2004

The aerated soft drinks industry in India continues to attract one of the highest foreign direct investments. The industry comprises over 100 plants across all States. Over one lakh twenty-five thousand people are employed in this sector. Contributing over Rs.1200 crore annually by way of excise duty, sales tax and related taxes, the soft drinks industry has strong forward and backward linkages. It covers glass, plastic, refrigeration, sugar and transportation industries. The total export earnings from this sector exceed Rs.700 crore per annum. Presently there are more than 7 lakh outlets to sell soft drinks in the country.

Soft drinks constitute the 3rd largest packaged food regularly consumed after packed tea and packed biscuits. The production of soft drinks has registered a steady increase over the years. In 2003-04, 1104 million bottles of aerated soft drinks were produced in the country as compared to 5670 million bottles during 1998-99.