Despite mounting pressure from higher sugar and packaging costs, SLMG Beverages says it has no immediate plans to raise beverage prices
SLMG Beverages, India’s largest independent bottling partner of the Coca-Cola Company, has no immediate plans to increase beverage prices despite persistent commodity inflation and geopolitical uncertainty, Joint Managing Director Paritosh Ladhani told BW Retail World, saying the company’s strategy remains focused on growth rather than passing higher costs on to consumers.
Asked whether rising commodity prices and renewed geopolitical tensions, particularly the escalating crisis in West Asia, could trigger another round of price hikes across the beverage industry, Ladhani said: “No, not yet.”
“Commodity prices move up and down in every cycle, and we have to live with that. Sometimes they go down, sometimes they go up. The only thing that really works is to constantly execute and grow; that is what we have been doing. Our pricing strategy remains the same for the entire year, and we have continued with that,” he said.
Input Costs Remain Elevated
The remarks come amid sustained cost pressures across India’s beverage and packaging supply chain. The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has flagged a 29 per cent increase in the Fair and Remunerative Price (FRP) of sugarcane to Rs 355 per quintal for the 2025-26 season, up from Rs 275 per quintal, raising sugar production costs across the industry.
Packaging costs have also remained under pressure. Aluminium and glass prices have risen following supply disruptions linked to the West Asia conflict, while plastic packaging is expected to become more expensive as shortages of key raw materials have pushed up polymer prices. Industry participants expect polymer prices to remain elevated if supply conditions do not improve.
Earlier this year, the Brewers Association of India (BAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) sought price revisions from state governments, citing sharply higher costs for glass bottles, cartons and aluminium cans.
Ladhani said SLMG’s pricing strategy would remain unchanged throughout FY26 despite fluctuations in the cost of key raw materials and packaging. He described the company’s approach as one centred on operational execution and growth rather than passing higher input costs on to consumers.
SLMG had itself flagged the possibility of packaging-led price increases as recently as March 2026. Deputy CEO Rahul Kumar had then said that continued geopolitical tensions could further increase packaging material costs, with any pricing decision depending on competitor actions and consumer response. He had also noted that the company had not implemented a portfolio-wide price increase in seven to eight years. Ladhani’s latest comments indicate that this position has remained unchanged through the first half of FY26.
Bihar Expansion Gains Momentum
On expansion, Ladhani reiterated the company’s commitment to invest more than Rs 5,000 crore over the next five years, of which Rs 1,200 crore has already been invested in its Buxar facility in Bihar.
“We have committed that we are planning to invest more than Rs 5,000 crore over the next five years. Of that, Rs 1,200 crore has already been invested in our Buxar facility in Bihar,” he said.
The commitment is lower than the Rs 8,000 crore capital expenditure plan over five to six years that the company had previously outlined to PTI, alongside its target of achieving Rs 20,000 crore in gross turnover by 2031-32.
The Nawanagar plant in Buxar, SLMG’s first Coca-Cola bottling facility in Bihar, was inaugurated earlier this year. Spread across around 65 acres, the facility houses seven high-speed production lines with an installed capacity of more than 5,000 bottles per minute, according to the company.
Hajipur Project Under Discussion
Ladhani confirmed that discussions with the Bihar government are continuing for a proposed bottling facility in Hajipur, although land has not yet been allotted.
“No, they haven’t. We are still in talks with them,” he said when asked whether land had been allocated for the project.
He added that the proposed Hajipur facility would span around 60-70 acres, similar in size to the Buxar plant, and would involve an investment of more than Rs 1,000 crore. However, he did not provide a timeline for land allocation or the commencement of construction.
Revenue Target and H2 Outlook
Speaking earlier to BW Businessworld in May, Ladhani had said the company had recently crossed Rs 8,000 crore in revenue and was targeting the Rs 10,000 crore milestone within the next one to two years, subject to favourable business conditions.
To support this growth, SLMG plans to invest between Rs 4,000 crore and Rs 5,000 crore over the next three years, with new bottling plants planned across western, central and eastern Uttar Pradesh following the commissioning of its Rs 1,500-crore Bihar facility.
Looking ahead, Ladhani expressed confidence in the company’s performance during the second half of FY26.
“H2 should perform much better than H1. July has started well, so we are looking at much better times,” he said.
