Bubbling with potential: John Murphy's plan to scale Coca-Cola in India

"I can tell you, we are more excited about the prospects for our business in India right now than we have ever been," John Murphy, president and CFO, Coca-Cola said

With competition continuing to heat up in the beverage space, both from regional and other major conglomerates, The Coca-Cola Company in India notes that it challenges the company. However, John Murphy, president and chief financial officer at the Atlanta-based beverage giant, said in a round-table in Mumbai that its portfolio in India is strong, as it has its own set of local brands.

 

“In the case of India, competitors like Campa Cola are just one of many. Several local and regional players are doing a good job too. We have our friends from Varun Beverages who are doing a good job, and it challenges us,” Murphy said.

 

He added, “Our portfolio in India is as strong, if not stronger than just about anywhere in the world because we have the benefit of local brands like Thums Up, Maaza, and Limca in our portfolio that we don't have in many other markets.”

 

He also mentioned that the company has to stay on its toes, adapt, and make sure it is investing in the capabilities it needs to win. Murphy said that the good thing about the company is that it has been in business in the country for a long time, and over that period, it has built up playbooks on how and where to play, as well as how to compete to win in the Indian market.

 

“I can tell you, we are more excited about the prospects for our business in India right now than we have ever been,” he said.

 

While talking about growth in rural markets, he said that in 2025, the relative strength of the rural areas is something the company is seeing flow through for fast-moving consumer goods companies, which presents a huge opportunity for the company.

 

On scaling up in rural areas, he said that the Rs 10 price point is very important for India.

 

“You’ve got to learn how to engineer backwards from the consumer, as opposed to driving the price point forward from production. The Rs 10 price point is very important in India; it’s one we’re very cognisant of and very focused on,” he explained.

 

He further said that part of the challenge is to sustain and grow margins and figure out a model for the same. He mentioned that the company’s system in the country is doing a good job of stepping up to the economics of the business, making it effective in their rural route-to-market, marketing, and getting the product to the point of sale.

 

“We’ve made tremendous progress over the past few years investing in cold drink equipment inside retail outlets so that the product is presented in the right way,” he added.

 

While talking about stress in urban markets in the country, he said the company highlighted in its July-September quarter that it had witnessed some weakness in certain parts of the country, but Murphy remains optimistic about the Indian market. “I see that more as a temporary phenomenon than something that’s going to be around for some time,” he said.

 

While talking about trends in retailing shaping up in India, Murphy pointed out that the company has witnessed the growth of quick commerce in India and other parts of Asia.

 

“Modern channels like supermarkets and hypermarkets, which we are used to in other markets, are growing at a much faster rate. These are interesting dynamics for us to stay on top of and adapt to as we go forward.”