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Global leader Coca-Cola has offered 40% stake in its Indian bottling company, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), to Jubilant Bhartia Group for Rs 12,500 crore. This marks a major shift in Coca-Cola’s business in India and reflects the rising power of the Jubilant Bhartia group in the country’s beverage industry.
Funding for the project will come from a combination of equity and debt, according to reports. The Bhartia family, led by Shyam and Hari Bhartia of the Jubilant Group, has contributed Rs 5,000 crore, while the balance will be provided by Goldman Sachs, which has pledged to fund a special purpose vehicle (SPV) set up for the merger. .
A joint statement on the development reads: “The Coca-Cola Company today announced that it has entered into an agreement with the Jubilant Bhartia Group, a multi-billion dollar conglomerate with global presence in various sectors, to acquire 40% in Hindustan Coca-Cola Holdings. Pvt Ltd, a company parent of India’s largest Coca-Cola bottler, Hindustan Coca-Cola Beverages Pvt Ltd.
These changes and investments represent a major step for Coca-Cola as the company continues to achieve its mission of refreshing the world and making a difference, he said.
Hindustan Coca-Cola Beverages has reported a 9.2% rise in revenue, to Rs 14,021 crore for FY24, and a 247% year-on-year growth in net profit. The company plans to invest $1.5 billion over the next five years to improve its bottling capacity and set up 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 diverse expertise in various sectors, Jubilant brings years of experience that will help accelerate the Coca-Cola system, enabling us to succeed in the market and provide greater value to the local community and consumers.
Juan Pablo Rodriguez, CEO of Hindustan Coca-Cola Beverages, said: “This strategic investment represents an important step in our journey. Jubilant Bhartia Group’s technology, complements our strengths, and ensures that we continue to deliver exceptional value to our partners while driving innovation and progress. fixed.”
Shyam S. Bhartia, Founder and Chairman and Hari S. Bhartia, Founder and Co-Chairman of Jubilant Bhartia Group, said the investment is a positive addition to their business. “The Coca-Cola Company is home to some of the most respected companies in the world and we are delighted to partner with them,” said Bhartia.
“Together, we will take advantage of the opportunity to grow the business to its full potential and ensure that more Indian consumers can enjoy The Coca-Cola Company’s refreshing reputation with global brands,” he said.
