Coca-Cola India plans partial sale of bottling business

Coca-Cola India is planning to sell part of its wholly-owned bottling business, Hindustan Coca-Cola Beverages (HCCB), and has approached the promoters of at least four top Indian business families. According to a report by The Economic Times on Tuesday, the families include the Bhartia family of the Jubilant Group, the Burman family of Dabur, the Parekh family of Pidilite Industries, and the promoter family of Asian Paints.

Coca-Cola is seeking an investment of about $800 million to $1 billion to expand its business. In addition to selling a stake in HCCB, the company is also considering an initial public offering (IPO) as part of its growth strategy. Discussions about the IPO are still in the internal planning stages, and the specific timeline for the listing is yet to be determined.


Earlier this year, HCCB handed over control of its operations in Rajasthan, Bihar, West Bengal, and the northeastern region to local business partners. Juan Pablo Rodriguez, chief executive of HCCB India, stated that this move was aimed at bringing “scale and contiguity to the business.”

HCCB operates 16 factories across India. In the financial year 2023, the company saw a 40% rise in revenue, reaching ₹12,840 crore. In the quarter ending March 29, 2024, HCCB reported net gains of $599 million from refranchising its bottling operations in the Philippines and $293 million from parts of India. The unit-based volumes for the Atlanta-based company grew by 1% during this quarter.

Coca-Cola India expects significant growth in its summer-centric products due to extreme heatwave conditions. The company, which had a slow start to the year, reported increased sales momentum across the beverage market. Coca-Cola India remains optimistic about its sparkling, hydration, and juice segments.