Citing an accumulated loss of Rs 2,178 crore as on March 31, 2001, which has wiped out 66 per cent of its investment of Rs 3,308 crore, Coca-Cola India has urged the government to do away with the disinvestment clause in its foreign collaboration agreement which requires it to divest up to 49 per cent shareholding in favour of resident shareholders, including the public, by July 2002.
It has also requested that pending a decision on the waiver, the time limit for the disinvestment be extended by another five years to July 2007. The company expects to break even in 2001-02 with a small surplus. It has projected that it will be able to wipe out the accumulated losses by 2005-06, without taking into consideration the impairment loss of Rs 1,400 crore.
The matter is scheduled to come up for the consideration of the Foreign Investment Promotion Board (FIPB) on October 4.
Giving an insight into the company
