Coca-Cola India is planning to sell a part of its wholly-owned bottling business, Hindustan Coca-Cola Beverages (HCCB), for which it has approached the promoters of at least four top Indian business families, reports said.
The names include Bhartia family of the Jubilant Group, Burman family of Dabur, Parekh family of Pidilite Industries, and the promoter family of Asian Paints, the report said. The soft drink manufacturing company is eyeing an investment of about $800 million to $1 billion in a bid to grow its business.
HCCB has also been considering an initial public offering (IPO) as part of its expansion plans. While discussions on the potential public offering are reportedly in the internal planning stage, the specific timeline for the IPO listing remains undetermined.
In January, HCCB handed over control of its operations in - Rajasthan, Bihar, West Bengal, and the northeastern region – to local business partners. According to Juan Pablo Rodriguez, chief executive of HCCB India, the move was aimed at bringing “scale and contiguity to the business”.
HCCB operates 16 factories spread in India. In the financial year 2023 (FY23), HCCB saw a significant 40 per cent rise in revenue, reaching £1.28 bn.
In the quarter ending March 29, 2024, the company reported net gains of $599 million and $293 million by refranchising its bottling operations in the Philippines and some parts of India, respectively. Unit-based volumes for the Atlanta-based company for this quarter grew 1 per cent.
Extreme heatwave conditions are one of the reasons set to fuel the expected sharp growth of fast-moving consumer goods companies’ summer-centric products.
Coca Cola India, which began the year on a soft start, said its sales have picked momentum as the demand across the beverage market has shot up. The company expects to remain bullish in our sparkling, hydration, and juice segments.
