The Never Ending Story of Coke’s Divestment

In its latest attempts to dilute the divestment conditions, Coke has sought permission from the Indian authorities to deny voting rights to the Indian shareholders. The proposal of offering voting rights to Indian shareholders is “substantive and onerous,” says the company. In a letter (dated January 23, 2003) addressed to the Foreign Investment Promotion Board (FIPB), Coke has sought deletion of the condition under which its bottling subsidiary, Hindustan Coca-Cola Beverages Private Limited (HCCBPL), is bound to provide 49 per cent voting rights to resident Indian shareholders.
Coke was granted permission to carry out business in India through its 100 per cent owned subsidiary with the condition…