Coco Cola: Jubilant Bhartia Group to acquire 40% share of Hindustan Coca-Cola Beverages

Leading global beverage company Coca-Cola has divested a 40% share of its Indian bottling subsidiary, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), to Jubilant Bhartia Group for Rs 12,500 crore. This transaction marks a significant strategic adjustment in Coca-Cola’s business operations in India and highlights the rising prominence of Jubilant Bhartia Group within the nation’s beverage industry.

The funding for the transaction will come from a combination of equity and debt sources, as per reports. The Bhartia family, under the leadership of Shyam and Hari Bhartia of the Jubilant Group, will contribute Rs 5,000 crore, while the remaining funds will be provided by Goldman Sachs, who has pledged to finance the special purpose vehicle (SPV) established for the deal.

A joint statement on the development stated: “The Coca-Cola Company today announced that it has reached an agreement with Jubilant Bhartia Group, a multi-billion conglomerate with global presence in diverse sectors, to acquire 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd, the parent company of the largest Coca-Cola bottler in India, Hindustan Coca-Cola Beverages Pvt Ltd.” 

These changes and investments represent a significant milestone for Coca-Cola as the company continues to pursue its purpose to refresh the world and make a difference, the statement said.

Hindustan Coca-Cola Beverages has announced a 9.2% rise in revenue, reaching Rs 14,021 crore for FY24, as well as a 247% year-on-year growth in net profit. The company is set to invest $1.5 billion in the next five years to enhance its bottling capacities and establish new facilities in Gujarat and Madhya Pradesh.

Sanket Ray, President of Coca-Cola India, said: “We welcome the 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.”
 
Juan Pablo Rodriguez, CEO of Hindustan Coca-Cola Beverages, said: “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.”

Shyam S. Bhartia, Founder and Chairman and Hari S. Bhartia, Founder and Co-Chairman of Jubilant Bhartia Group, said the investment is an ideal addition to their business. “The Coca-Cola Company is home to some of the most respected global brands and we are delighted to be associated with them,” Bhartia said. 

“Together, we will leverage opportunities to grow the business to greater heights and ensure more Indian consumers can enjoy The Coca-Cola Company’s refreshing portfolio of iconic local and international brands,” he said.