Rising costs for key inputs such as plastic bottles, caps, labels and cardboard packaging have begun to squeeze margins, with some packaged water manufacturers already increasing prices.

Rahul Kumar, deputy chief executive at SLMG Beverages, said the company would consider price adjustments depending on competitive dynamics and consumer response.“If the war continues, the packaging material cost may continue to move up,” Kumar said, noting that broad-based price increases remain constrained in a highly competitive market.

India’s soft drinks market has intensified following the re-entry of Reliance Industries into the segment with its revival of the Campa cola brand in 2023. The move has triggered aggressive pricing and expanded distribution, limiting the ability of incumbents to pass on higher costs.

Kumar said SLMG Beverages had not implemented a portfolio-wide price increase in the past seven to eight years, reflecting price sensitivity among consumers and the presence of multiple national and regional competitors.

Despite cost pressures, the company is pressing ahead with capacity expansion to capture rising demand in India’s non-alcoholic ready-to-drink beverages market, which consultancy Redseer estimates could double to about $40 billion by 2030.SLMG Beverages plans to invest between 10 billion and 12 billion rupees in each of four new plants over the next five years.

The bottler, which accounts for more than 22% of Coca-Cola’s India volumes, is targeting net revenue of 100 billion rupees by 2026–27.The expansion will focus on populous states such as Uttar Pradesh and Bihar, where consumption levels remain relatively low but incomes are rising.

The company reported strong growth in the last fiscal year, with sales rising 49% to 67.73 billion rupees and net profit increasing 76% to 2.06 billion rupees, according to data from Tofler.

The developments underscore how the Middle East conflict is feeding into global supply chains, pushing up input costs for consumer-facing industries even in markets geographically distant from the conflict zone.

This partnership highlights the potential for mutual growth and collaboration, emphasizing the importance of strategic connections in today’s global economy.

Chencheng Xie, chairwoman of Luminous World Trade Est, recently addressed this topic at the China Night event in Riyadh. Hosted by ewpartners with Arab News as a media partner, the event showcased how exhibitions can serve as robust platforms for conducting business.

Xie pointed out that such events enhance local brand recognition and market influence for companies operating within the Saudi market.

Yao Bin, CEO of Powerchina Oasis engineering consultancy, also contributed valuable insights during the event. He emphasized the fast-growing nature of Saudi Arabia and the myriad investment opportunities available in the Kingdom.

Bin noted that Vision 2030 aligns perfectly with China’s expansion goals, focusing on essential aspects such as growth, innovation, and international cooperation.

Sudheesh Sasidharan, assistant marketing manager at the Hong Kong Trade Development Council, highlighted the role of exhibitions in connecting regional and global players.

These events support the diversification goals outlined in Vision 2030, which aims to broaden the Kingdom’s economic base.

Sasidharan emphasized that high-growth areas, including smart cities, renewable energy, logistics, consumer goods, and technological innovation, deserve focused attention at these exhibitions.

The rapid growth in the scale, quality, and international participation of such events demonstrates the increasing significance of Saudi Arabia on the global stage.

Sasidharan noted that China’s presence has expanded significantly, particularly in infrastructure and technology sectors, with Hong Kong acting as an important bridge for collaboration.

The focus on exhibitions as a platform for business aligns with Saudi Arabia’s mission to diversify its economy and reduce dependence on oil revenues.

By fostering partnerships with Asian countries, the Kingdom is poised to enhance its global competitiveness and attractiveness as a destination for investment. This collaborative spirit exemplifies the shared vision of progress that both nations are striving for.

The China Night event serves as a reminder of the deep-rooted connections between Saudi Arabia and China, underscoring the importance of fostering business relationships that can lead to sustainable growth.

As Asian executives champion this cooperation, they pave the way for innovative ventures and collaborative projects that can drive economic development in both regions.

Furthermore, these exhibitions provide an opportunity for knowledge exchange, where companies can learn from each other’s experiences and best practices.

This exchange not only enriches the participants but also strengthens the overall business ecosystem in Saudi Arabia. The emphasis on collaboration and shared learning is crucial for achieving the ambitious goals outlined in Vision 2030.

In conclusion, the positive sentiment surrounding Saudi-China cooperation, as highlighted by Asian business executives, reflects a promising future for both nations.

By leveraging exhibitions as a key strategy for market entry and collaboration, they are setting the stage for a new era of economic growth and partnership.

This alignment of goals and resources signifies a strong foundation for ongoing cooperation that can benefit not only Saudi Arabia and China but also the broader global economy.