Coca-Cola, the global beverage giant, is set to divest its bottling plant in North Gujarat to Kandhari Global Beverages as part of its ongoing asset-light business strategy. While the financial details have not been officially disclosed, industry insiders estimate the deal to be worth around Rs 2,000 crore.
Strategic Asset Divestment:
The transfer will see Coca-Cola’s Indian bottling arm, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), hand over operations in North Gujarat to Kandhari Global Beverages, a long-standing bottling partner. A spokesperson for HCCBL confirmed the agreement, stating that the transition is subject to regulatory approvals.
“This transfer will ensure that the right level of investments can be undertaken in all parts of the business while bringing scale and contiguity,” the spokesperson added.
Coca-Cola’s Ongoing Franchising Approach:
As part of its broader global strategy, Coca-Cola has been divesting its bottling assets by franchising regional operations to local partners. In the December quarter, the company sold a 40% stake in HCCBL to the Bhartia family for an estimated Rs 10,000 crore. Prior to that, in the March quarter of the previous year, Coca-Cola transferred bottling operations in Rajasthan, Bihar, Northeast, and parts of West Bengal to its existing partners for approximately USD 290 million (Rs 2,420 crore).
Impact on HCCBL and Kandhari Global Beverages:
Following this sale, HCCBL will retain 15 operational plants across India, producing popular beverages like Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, SmartWater, Kinley, Limca, and Fanta.
Kandhari Global Beverages has been expanding its bottling operations across various regions, including Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh. It was also one of the three bottlers to which Coca-Cola transferred Rajasthan operations last year. The other two bottling partners were SLMG Beverages and Moon Beverages.
India’s Role in Coca-Cola’s Global Business:
India remains the fifth-largest market for Coca-Cola, with HCCBL reporting a revenue of Rs 14,021.54 crore in FY24 and a net profit of Rs 2,808.31 crore, largely bolstered by its strategic asset divestments. The latest deal with Kandhari Global Beverages marks another step in Coca-Cola’s restructuring efforts, ensuring localized growth and operational efficiency within the Indian market.
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