Coca-Cola Offloads 40% Stake in Indian Bottling Arm to Jubilant Bhartia Group

In a landmark deal, Coca-Cola has sold a 40% stake in its wholly owned Indian bottling arm, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), to Jubilant Bhartia Group for Rs12,500 crore. This move signals Coca-Cola’s strategic shift towards an asset-light model in India, similar to Pepsico’s approach while positioning Jubilant Bhartia Group as a key player in the country’s beverage industry.

HCCB, the largest Coca-Cola bottler in India, manufactures and distributes 37 products across categories including soft drinks, juices and energy drinks. Recently, it reported a 9.2% revenue growth, reaching Rs 14,021 crore in FY24, with a staggering 247% surge in net profit. The company also plans to invest USD 1.5 billion to expand its bottling capacity over the next 5 years.

India, Coca-Cola’s fifth-largest market by volume, offers immense growth potential due to its low per capita consumption of packaged beverages. By divesting its HCCB stake, Coca-Cola aims to unlock value, potentially paving the way for an IPO.

The Bhartia family has partnered with Goldman Sachs for financing, showcasing a calculated approach to this high-stakes acquisition. With this deal, Jubilant Bhartia Group strengthens its foothold in India’s beverage sector and marks a pivotal moment in Coca-Cola India’s operational strategy.