Coca-Cola

Coca-Cola Partners with Jubilant Bhartia Group: Jubilant Bhartia Group Acquires 40% of HCCB in a ₹12,500 Cr Deal with Coa-Cola

 

Coca-Cola has signed a landmark deal with Jubilant Bhartia Group, selling a 40% stake in its Indian bottling arm, Hindustan Coca-Cola Beverages Pvt Ltd (HCCB). The deal is worth around ₹10,000 crore and is a bold step in Coca-Cola's global asset-light strategy as the company tries to streamline its operations and focus on core branding.

HCCB, which is the largest bottling partner for Coca-Cola in India, would be a key player in building the brand's regional footprint. It produces and sells a portfolio of 37 beverages, including soft drinks, juices, and energy drinks. The deal is likely to cement the position of Jubilant Bhartia Group as a major player in India's competitive beverage industry.

 

Coca-Cola India Announces Partnership with Jubilant Bhartia Group

 

Sanket Ray, Coca-Cola India’s president, praised the partnership, citing the Jubilant Bhartia Group’s diverse experience across industries. This collaboration aims to drive growth for the Coca-Cola system while delivering value to local communities and consumers. The Atlanta-based beverage giant considers India its fifth-largest market, making this deal a crucial milestone.

Reports have said the Bhartia family is using a combination of equity and debt funding, which is provided by a very significant involvement of Goldman Sachs. For instance, through the company known for its foray into foods and beverages, Jubilant FoodWorks brings crucial experience managing Domino's Pizza in India.

 

Coca-Cola Gears to Expand into Indian Competition Beverage Industry

 

The sale comes at a time when the Indian beverage market is witnessing intense competition. Reliance Consumer Products recently revived the Campa brand, challenging established players like Coca-Cola with aggressive pricing. In this scenario, HCCB aims to expand its reach into Tier-II and Tier-III cities, tapping into untapped potential.

Like that of rival PepsiCo, which outsourced bottling operations to Varun Beverages, Coca-Cola has adopted a similar strategy by reducing operational costs while availing itself of local expertise.

 

Coca-Cola Invests $1.5B to Push India Expansion

 

It also shows that Coca-Cola has full confidence in the growth of India. The company has already committed to investing $1.5 billion in investments over the next five years, including new facilities in Gujarat and Madhya Pradesh, thus cementing its leadership position in the region.