Coca-Cola sells 40% stake in India bottling arm to Jubilant Bhartia Group

Global beverages giant Coca-Cola has sold a 40% stake in its India bottling business, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), to Jubilant Bhartia Group, PTI reported on Wednesday.

The acquisition is the biggest for Jubilant Bhartia Group, whose portfolio includes operations in pharmaceuticals, food services, and other industries.

"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 per cent 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," a joint statement said.

Commenting on the partnership, 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."

Hindustan Coca-Cola Beverages CEO Juan Pablo Rodriguez termed the partnership “a strategic investment” that complements Coca-Cola’s strengths and ensures innovation and sustainable progress.

India, Coca-Cola’s fifth-largest market globally, is a critical part of the company’s asset-light strategy. The Atlanta-headquartered firm has been divesting its bottling operations worldwide to focus on its core beverage business.

HCCB’s revenue in FY24 grew 9.2% to ₹14,021 crore, while its net profit surged 247% to ₹2,808.3 crore, driven by an expanded distribution network in tier-2 and tier-3 markets.