Hindustan Coca-Cola Beverages, the bottling arm of Coca-Cola India, is said to have shifted one of the three bottling lines, which were inactive since 2004, from Plachimada plant in Kerala to Orissa. Company officials have clarified that it is a part of restructuring exercise that is going on, and the company has no plans to shift the whole plant out of Kerala. The company is in the middle of a $260 million restructuring programme, which also includes its bottling and marketing operations.
The operation of the bottling plant was suspended three years ago, due to a government directive to stop drawing underground water. Though Coke acquired a conditional license to operate its plant, this license was to be renewed every three months. But Coca-Cola rejected the conditional license.