The Centre is putting in place strong economic foundations that will enable sustained growth, said John Murphy, President of the Asia-Pacific Group at The Coca-Cola Company. In an interview to BusinessLine while here recently, he spoke about the outlook for 2018, the GST rollout, and being a complete beverage company. Excerpts:
How did Coca-Cola India fare in 2017?
The first half of the year was challenging. But from the third quarter of 2017, things started looking up.
So how do you see 2018 for Coke in India?
I think the overall macro environment seems to be very solid. The government is really doing a lot of good stuff to help put in place the foundations that any economy needs and be able to develop sustained growth for a number of years.
Estimates on both GDP growth and personal consumable expenditure are in the high single digit range. For a business like ours that is closely linked to people’s ability to spend, that is a positive. It is a tailwind and we would love to have a very positive year ahead.
Do you think it’s easy doing business in India?
I think ease of doing business is a work in progress. It (doing business) is much easier than what it was, but it can still get easier. In a country as vast as India, it (improving ease of doing business) is a step-by-step process.
You spoke about “structural changes being in place”. Can you elaborate?
First of all, the new GST regime has been a terrific programme over all. For a business like ours, it facilitates a much easier countrywide process.
Secondly, the government continues to invest in infrastructure and it was reinforced in Budget 2018-19. Again, a business relies on good infrastructure for faster and safer movement of goods.
And finally, I believe, the Centre continues to be very focussed on stimulating consumer spending, whether it is through supporting the farming sector, which is such a huge part of the economy, or through other means. Overall, these areas are going to be positives for the industry in general and FMCG companies in particular.
Coca-Cola is considered an aerated drinks maker in India. Any plans to change the perception?
I think the way to change this is through our actions. We are already building a portfolio of branded solutions to meet the needs and palates of Indian consumers. Hopefully, our actions in the marketplace will demonstrate that we have the consumer first, thereby helping us become a complete beverage company.