In the last few days, Coca-Cola and PepsiCo were under immense pressure in India after accusation of pesticide. US government came support of the two cola giants and warned that US investment may suffer in India as a result of the problem faced by Coke and Pepsi. Now, Coke and Pepsi both have assured Indian government that they will not change their long term investment plan in India. I am quoting from a report of the Hindu:
"A day after the US Government said foreign investment inflows could be hit due to the controversy, PepsiCo India chief Rajiv Bakshi told reporters here: "Our investment plans will not be affected in any way".
He, however, said that short-term plans could be reviewed.
Echoing similar sentiments, a spokesperson for Coca Cola in India said: "In the last 13 years, we have invested one billion dollars in India. We are committed to our plans."
Coke and Pepsi bosses in India have acted very smartly. This way, they have tried to appear as the good guys. I feel that at last, they have come up with some good PR tactics. The storm is over for the time being and within a few weeks it will become business as usual for Coke and Pepsi. Or may be not!
What do you think about it?
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