Andhra Pradesh’s Coca-Cola investment story has taken a new turn. A project proposed in 2024 at Rambilli in Anakapalli district, involving 50.04 acres and an investment of around Rs 1,200 crore, did not move forward. The land was later returned, triggering a political controversy.
However, Hindustan Coca-Cola Beverages (HCCB) has not withdrawn from Andhra Pradesh. The company is now planning a new manufacturing unit in Vizianagaram with an investment of Rs 842 crore, along with an expansion of its existing facility in Srikalahasti, Chittoor. The total proposed investment in the state is Rs 1,127 crore.
Coca-Cola Rambilli Project: What Was Proposed in 2024?
The Coca-Cola project at Rambilli was proposed in the Krishnampalem area of Rambilli mandal in Anakapalli district.
Hindustan Coca-Cola Beverages submitted its proposal to the Andhra Pradesh government on May 4, 2023. Following consideration of the proposal, the state government issued orders on February 7, 2024, allocating 50.04 acres of land for the project, according to a report by Sakshi.
The proposed project involved an investment of approximately Rs 1,200 crore and a beverage manufacturing facility with a reported capacity of 6.65 KLP(A). The project was expected to become a significant industrial investment in the north Andhra region.
Why Did the Rambilli Project Stop?
After the change in government in Andhra Pradesh, the Coca-Cola project became a political issue.
According to Sakshi, the company sought to return the 50.04 acres allocated to it and requested that additional land should not be consolidated in its name. The land allocation was subsequently cancelled by the Industries Department.
YSR Congress Party leaders alleged that pressure and alleged demands from ruling coalition leaders were responsible for the company reconsidering the Rambilli investment.
These allegations, however, have not been independently established.
A different explanation was reported by The Economic Times. Quoting a senior state government official, the newspaper reported that the expansion plan had been postponed because of a leadership change within the company. The report also said HCCB was now moving ahead with a new project and expansion in Andhra Pradesh.
Coca-Cola Is Still Investing in Andhra Pradesh
The latest developments indicate that HCCB has not abandoned Andhra Pradesh as an investment destination.
According to The Economic Times, the State Investment Promotion Committee approved an investment plan worth Rs 1,127 crore for HCCB in the state.
The investment is divided into two projects:
- Rs 842 crore for a new manufacturing unit in Vizianagaram
- Rs 285 crore for expansion of the existing facility at Srikalahasti in Chittoor
The projects are intended to strengthen HCCB’s production capacity and help meet beverage demand across southern markets.
Rs 842 Crore Coca-Cola Manufacturing Unit in Vizianagaram
The proposed Coca-Cola manufacturing unit in Vizianagaram will involve an investment of Rs 842 crore.
In the first phase, the plant is expected to have three bottling lines with a capacity of 18 million cases per year. These will include production facilities for carbonated soft drinks, juices and tetra-pack products.
The company plans to add another two bottling lines in the second phase, increasing annual capacity by an additional 12 million cases.
The Vizianagaram project is therefore expected to become an important addition to Coca-Cola’s manufacturing network in Andhra Pradesh.
Srikalahasti Plant to Get Rs 285 Crore Expansion
Alongside the Vizianagaram project, HCCB plans to invest Rs 285 crore to expand its existing facility at Srikalahasti in Chittoor district.
The expansion will include one packaged drinking water bottling line and two carbonated soft drink bottling lines. Products from the expanded facility will include Coca-Cola, Thums Up, Sprite, Fanta, Limca and Kinley water, according to The Economic Times.
The expansion will take place within the existing plant premises, meaning no additional land acquisition is planned for this part of the investment.
Rs 1,200 Crore Rambilli Project vs Rs 842 Crore Vizianagaram Project
The difference between the two projects has become an important part of the political debate.
The Rambilli proposal involved an investment of around Rs 1,200 crore, while the new Vizianagaram manufacturing unit involves Rs 842 crore.
However, the two projects cannot be directly compared only on the basis of investment value. Their proposed capacities, production lines, land requirements and implementation phases may be different.
What is clear from the available reports is that the Rambilli project did not proceed as originally proposed, while HCCB has subsequently announced fresh investment in Andhra Pradesh through the Vizianagaram and Srikalahasti projects.
Two Different Explanations for the Rambilli Project
The Rambilli project has produced two different narratives.
The YSR Congress Party’s version is that alleged pressure from ruling coalition leaders contributed to the company withdrawing from the Rambilli project. This remains a political allegation and has not been independently verified.
The other explanation, reported by The Economic Times citing a senior state government official, is that a leadership change within HCCB delayed the company’s expansion plans. The same report says the company is now expanding its Andhra Pradesh operations through the Vizianagaram and Srikalahasti projects.
Therefore, the available reporting does not establish a single definitive reason for the Rambilli project’s withdrawal.
From Rambilli to Vizianagaram
The Coca-Cola investment story in Andhra Pradesh has therefore moved from Rambilli in Anakapalli district to Vizianagaram.
In 2024, the focus was on 50.04 acres and a proposed Rs 1,200 crore beverage manufacturing project. After the land allocation was returned and the project became the subject of political criticism, the company has now proposed a new Rs 842 crore manufacturing unit in Vizianagaram.
Together with the Rs 285 crore Srikalahasti expansion, HCCB’s latest investment plan totals Rs 1,127 crore in Andhra Pradesh.
The latest development suggests that while the original Coca-Cola Rambilli project in Andhra Pradesh did not proceed, the company continues to plan substantial manufacturing investment in the state.
Key Takeaway
The Coca-Cola story in Andhra Pradesh has taken a different route from the one originally planned. The 50.04-acre Rambilli project and its proposed Rs 1,200 crore investment did not materialise, while HCCB has now received approval for a Rs 842 crore new plant in Vizianagaram and a Rs 285 crore expansion at Srikalahasti.
The political dispute over why the Rambilli project was withdrawn continues, but the latest investment plan confirms that Hindustan Coca-Cola Beverages remains active in Andhra Pradesh.
