Coco-Cola: Jubilant Bhartiya Group acquires 40% stake in Hindustan Coca-Cola Beverages Company

Global beverage major 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 represents a significant strategic adjustment in Coca-Cola’s business operations in India and highlights the growing importance of Jubilant Bhartia Group in the country’s beverage industry.

Funding for the deal will come from a combination of equity and debt sources, according to reports. The Bhartia family, led by Shyam and Hari Bhartia of Jubilant Group, will contribute Rs 5,000 crore, while the remaining funds will be provided by Goldman Sachs, which has pledged to fund the special purpose vehicle (SPV) created for the deal. .

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

These changes and investments represent an important milestone for Coca-Cola as the company continues to achieve its goal of modernizing the world and making a difference, the statement said.

Hindustan Coca-Cola Beverages reported a 9.2% increase in revenue, to Rs 14,021 crore for FY24, as well as a 247% growth in net profit year-on-year. The company is scheduled to invest $1.5 billion in the next five years to enhance its packaging capabilities and establish new facilities in the states of Gujarat and Madhya Pradesh.

Sanket Rai, President, Coca-Cola India, said: “We welcome Jubilant Bhartiya Group to the Coca-Cola system in India. With its diversified expertise 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 for 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 Bhartiya Group’s expertise complements our strengths, ensuring we continue to deliver exceptional value to our stakeholders while driving innovation and sustainable progress.

Shyam S. said: Bhartia, Founder and Chairman, and Harry S. Bhartia, Founder and Co-Chairman of Jubilant Bhartia Group, said the investment was a perfect addition to their business. “The Coca-Cola Company is home to some of the world’s most respected brands, and we are thrilled to be associated with them,” Bhartia said.

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