Jubilant Bhartia Group to Acquire 40% Stake in Coca-Cola’s India Bottling Business

Coca-Cola has agreed to sell a 40% stake in Hindustan Coca-Cola Holdings (HCCH) to the Jubilant Bhartia Group. HCCH is the parent company of Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s largest bottling partner in India. The deal is valued at approximately ₹12,500 crore, which places HCCB’s valuation at ₹31,250 crore.

Strategic Move for Growth

This agreement aligns with Coca-Cola’s global asset-light strategy of refranchising bottling operations. The company had earlier reported gains of $293 million from similar initiatives in India. HCCB primarily operates in South and West India and manages over 60 products, including iconic brands like Coca-Cola, Thums Up, and Maaza.

Bhartia Group’s Entry into Bottling

The partnership provides Jubilant Bhartia Group an entry into the bottling industry, which is expected to see significant growth in India. Jubilant Beverages, an entity of the group, will handle the equity acquisition. Funding is likely to come through a mix of the group’s contribution (₹4,000–5,000 crore) and investment from Goldman Sachs.

Shared Expertise to Boost Operations

The collaboration aims to leverage Jubilant Bhartia Group’s expertise, gained from operating franchises like Domino’s, Dunkin’, and Popeyes, to enhance HCCB’s operations. Both partners foresee synergies between HCCB and Jubilant’s existing businesses, focusing on innovation and sustainable growth in India’s fast-expanding beverage market.

Financial Highlights of HCCB

In FY24, HCCB reported a 10.1% rise in revenue, reaching ₹14,021.54 crore, and a threefold increase in net profit to ₹2,808.31 crore.

India: A Key Market for Coca-Cola

India ranks as Coca-Cola’s fifth-largest market globally, showcasing immense potential for future growth. The deal marks an important step in strengthening Coca-Cola’s presence while empowering Jubilant Bhartia Group to expand its portfolio.

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