Coca-Cola Sells 40% Stake in India Bottling Business to Jubilant Bhartia Group
Coca-Cola has announced a strategic partnership with Jubilant Bhartia Group, selling a 40% stake in Hindustan Coca-Cola Holdings (HCCH) for ₹12,500 crore. This move is in line with Coca-Cola’s global refranchising strategy and strengthens its presence in India, its fifth-largest market. The deal marks a major entry into the bottling sector for Jubilant Bhartia Group, which will leverage its operational expertise from businesses like Domino’s and Dunkin’ to boost the growth of Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s largest bottler in India.
Coca-Cola has agreed to sell a 40% equity stake in HCCH, valuing the company at ₹31,250 crore. This will empower Jubilant Bhartia Group to significantly expand its portfolio in the fast-growing beverage sector in India. The Bhartia Group plans to finance the deal with a mix of its own funds and an investment from Goldman Sachs.
This transaction is part of Coca-Cola’s global strategy to refocus its operations on an asset-light model, a move it has been pursuing through refranchising bottling businesses in various regions. The company previously reported net gains of $293 million from similar ventures, notably in India’s regions like Rajasthan and Bihar.
For FY24, HCCB saw a significant 10.1% revenue growth, totaling ₹14,021.54 crore, while net profit tripled to ₹2,808.31 crore. The company manages over 60 beverage products, including major brands like Coca-Cola, Thums Up, and Maaza.
The partnership is expected to create synergies between Jubilant Bhartia Group’s experience in the food service industry, with brands like Domino’s and Dunkin’, and the extensive beverage distribution network of HCCB. This collaboration will focus on expanding market reach and fostering innovation in India’s expanding beverage market.
India remains a key market for Coca-Cola due to its growing consumer base and significant potential for future growth. This strategic deal further solidifies Coca-Cola’s leadership in the Indian market while providing Jubilant Bhartia Group with a strong foothold in the bottling industry, poised for growth in the coming years.
| Key Point | Details |
|---|---|
| Why in News | Coca-Cola sold a 40% stake in Hindustan Coca-Cola Holdings (HCCH) to Jubilant Bhartia Group for ₹12,500 crore, valuing HCCH at ₹31,250 crore. |
| HCCB Revenue Growth | 10.1% in FY24, reaching ₹14,021.54 crore. |
| HCCB Net Profit | Tripled to ₹2,808.31 crore in FY24. |
| Coca-Cola’s Strategy | Part of a global asset-light refranchising initiative. |
| Jubilant’s Funding Plan | ₹4,000–₹5,000 crore from the group; remainder by Goldman Sachs. |
| HCCB Operations | Manages over 60 products, including Coca-Cola, Thums Up, Maaza. |
| India’s Rank for Coca-Cola | Fifth-largest market globally. |
| HCCB Regions | Operates primarily in South and West India. |
| Advisors for the Deal | Morgan Stanley (Jubilant Bhartia Group), Rothschild & Co (Coca-Cola). |
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