Coca-Cola Sells 40% Stake in Indian Bottling Unit to Jubilant Bhartia Group While the financial details were not officially disclosed, media reports peg the deal's valuation at around INR 10,000 crore.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
In a major development within India's beverage sector, Coca-Cola has sold a 40 per cent stake in its bottling operations, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), to the Jubilant Bhartia Group. While the financial details were not officially disclosed, media reports peg the deal's valuation at around INR 10,000 crore.
The agreement, described as a pivotal move for Coca-Cola, was detailed in a joint announcement quoted by PTI. The transaction involves Jubilant Bhartia Group acquiring a 40 per cent stake in Hindustan Coca-Cola Holdings Pvt Ltd, the parent company of HCCBL, India's largest Coca-Cola bottler. Jubilant Bhartia Group, a multi-billion-dollar conglomerate with a global footprint across diverse industries, is expected to bring strategic synergies to Coca-Cola's operations in the region.
Commenting on the deal, Coca-Cola India president, Sanket Ray, said, "We welcome Jubilant Bhartia Group to the Coca-Cola System in India. With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers."
India, Coca-Cola's fifth-largest market globally, plays a significant role in the company's long-term growth strategy. The move aligns with Coca-Cola's ongoing shift towards an asset-light model, which involves reducing direct involvement in bottling operations worldwide.
The Coca-Cola Company, headquartered in Atlanta, has consistently emphasized its mission to "refresh the world and create impact," and this partnership underscores its commitment to that vision in the Indian market. This transaction is poised to reshape the landscape of Coca-Cola's operations in India, fostering innovation, market competitiveness, and sustainable growth.
Hindustan Coca-Cola Beverages CEO, Juan Pablo Rodriguez, commented, "This strategic investment represents an important milestone in our journey. Jubilant Bhartia Group's expertise, complements our strengths, ensuring that we continue delivering exceptional value to our stakeholders while driving innovation and sustainable progress."
