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Leading global beverage company Coca-Cola has sold a 40% stake in 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 growing importance of Jubilant Bhartia Group within the country’s beverage industry.
Financing for the transaction will come from a combination of equity and debt sources, according to 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 committed to fund the special purpose vehicle (SPV) set up to the agreement. .
A joint statement on the development read: “The Coca-Cola Company today announced that it has entered into an agreement with Jubilant Bhartia Group, a multi-billion dollar conglomerate with a global presence in various sectors, to acquire a 40% stake in Hindustan Coca-Cola Holdings. . Pvt Ltd, the parent company of India’s largest Coca-Cola bottler, Hindustan Coca-Cola Beverages Pvt Ltd.”
These changes and investments represent an important milestone for Coca-Cola as the company continues to pursue its purpose of renewing the world and making a difference, according to the statement.
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 will invest $1.5 billion over the next five years to enhance its bottling capabilities and set up new facilities in Gujarat and Madhya Pradesh.
Sanket Ray, President, Coca-Cola India, 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, allowing us to win in the market and deliver greater value to local communities and consumers.”
Juan Pablo Rodríguez, 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 we continue to deliver 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,” said Bhartia.
“Together, we will seize opportunities to grow the business to greater heights and ensure that more Indian consumers can enjoy The Coca-Cola Company’s refreshing portfolio of iconic local and international brands,” he said.
