'Coca Cola may set up Lanka plant to target Indian market'

American beverages major Coca-Cola Co may set up a plant in Sri Lanka to feed demands in India, which has the highest demand of the firm's products in South Asia, the Sri Lankan finance ministry today said.

Coca-Cola's interest was expressed by the Asia Pacific chiefs of the Company when they met the Finance Minister Ravi Karunanayake here over the weekend, it said in a statement.

"They pointed out that Sri Lanka could be developed into a production hub to re-export their products to India. India has the highest demand for Coca Cola products in the South Asian region." The Atlanta-based firm's products include Coca-Cola, Sprite, Fanta, Thums Up and Limca, juices and juice-based drinks like Minute Maid and Maaza, packaged water, as well as Kinley soda.

The non-alcoholic beverages market in India is said to be around USD 5 billion, according to the data available on the website of Indian Beverage Association, which is formed by firms with direct and allied interests in the non-alcoholic beverage industry.