Why is Coca Cola Selling some of its Beverage Plants ?

Is Coca Cola really selling some of its units in India ?

(Listen to the Podcast)

Coca Cola, the global giant beverage producer is all set to sell off its 3 production units, according to this news . It's a good profit making (Last year 373% profit rise) venture for them. Still why are they selling these ? Some reasons might be ...

• Coca Cola is a Global multinational. The costs are much higher compared to the local franchisees, the Indian companies.
• Their Essence selling business (the real secret of Coke) might be having better potential than bottling, which they might be thinking of expanding
• Having run own units for a considerable time, it might be the right time to switchover to franchise model, in a phased manner.
• They may be willing to put the risk of the Plastic Ban (If it comes truely) on the franchisors.

Please share if you think something beyond this.

Is a Franchise really profitable ?

If you scroll below in the post (above mentioned), you will notice a comment wherein the commenter says that Coca Cola Franchisee ultimately starts his own version of Coke within the next year of operation

Franchise or own plant, any plant will close down if not run properly. That's why many Packaged Drinking Plants close their operations in 1-2 years. For a Plant to run (rather any business) profitable, it needs careful investment planning & ROI calculations (Return on Investment). If you do this perfect in 1st place, you won't need to close down. Who will do it with a well established brand like Coca Cola ?

We conduct detailed Plant Cost Calculation Session during training 

During our Live Trainings, or in our Home study Course we have a special session on the Plant Cost Calulcation which prompts the investor as to what will be the costs & the ROI. Listen to a sample recorded session here. And do undertake training in case you are thinking of setting up your water business.