Hindustan Coca-Cola Beverages approaches top Indian business families for strategic investment as part of expansion plans
Coca-Cola India plans to sell a portion of its wholly-owned bottling business, Hindustan Coca-Cola Beverages (HCCB). It has approached the promoters of at least four prominent Indian business families, according to media reports.
The potential investors 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 targeting an investment of approximately 800 million USD to 1 billion USD to bolster its business growth.
In addition to seeking investors, HCCB has been considering an initial public offering (IPO) as part of its expansion strategy. While discussions on the potential public offering are still in the internal planning stages, the specific timeline for the IPO listing has yet to be determined.
In April, Business Standard reported that Coca-Cola remains optimistic about long-term growth in India and anticipates a strong performance in the coming year.
Earlier this year, in January, HCCB transferred control of its operations in Rajasthan, Bihar, West Bengal and the northeastern region to local business partners. Juan Pablo Rodriguez, Chief Executive, HCCB India stated that this move aimed to bring “scale and contiguity to the business.”
HCCB operates 16 factories across India. In the financial year 2023 (FY23), the company saw a substantial 40 per cent increase in revenue, reaching Rs 12,840 crore.
In the 29 March 2024 quarter, Coca-Cola reported net gains of 599 million USD and 293 million USD from re-franchising its bottling operations in the Philippines and parts of India, respectively. Unit-based volumes for the Atlanta-based company grew by 1 per cent during this quarter.
Extreme heatwave conditions are expected to drive the sharp growth of fast-moving consumer goods companies’ summer-centric products. Coca-Cola India, which began the year with a slow start, reported an increase in sales as demand for beverages surged. The company remains optimistic about its sparkling, hydration, and juice segments.
According to market research firm Kantar Worldpanel, carbonated beverages experienced a 19 per cent year-on-year increase in volume growth in April 2024.
