Coke Eyes J & K Water Unit

Coca-Cola India, the domestic subsidiary of the US soft drinks multinational, has sought to acquire a mineral water plant in Jammu and Kashmir. It has already submitted a proposal to the state ministry and a decision is expected soon. The mineral water unit belongs to a local company, Ab I Hayat.

The move comes close on the heels of J&K's recent decision to speed up investments in the troubled state.

Sources in the state administration said seven other companies have expressed their desire to invest in the state. "The total investment by these companies will be to the tune of Rs 200 crore," they added.

This will be Coca-Cola India's first foray into mineral water. The multinational mostly sells soft drinks and even its canned juice brand, Minute Maid, has not been launched locally.

Of the total eight companies investing in J&K, three are into food processing, while others are in textiles, form mattress, auto spare parts and hosiery.

Sources said the state was working towards reviving and rehabilitating existing industries that have turned sick and was also trying to attract new investments.

J&K has also prepared a package to woo investments whereby it has agreed to lease land for 90 years to those interested in setting up projects .

The sources added that while Fungicides India and the Menjri Group have received clearance from the state government to set up processing units, proposals of the other firms were being reviewed and clearances were expected soon.

Fungicides India, has already commissioned a project slated to be completed by the year-end. It has a technical collaboration and a buy-back arrangement with a German firm for processing 50,000 tonnes of apples per annum.

The Menjri Group too is planning to set up a processing unit for apples with a capacity 30,000 tonnes per annum for which the state has issued a letter of intent.