Coca-Cola India seeks US$1B investment for HCCB Divestment 

INDIA—Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s bottling arm in India, is pursuing a significant divestment of its operations.  

According to a report by The Economic Times, the company has approached four prominent Indian business families for a potential investment of between US$800 million and US$1 billion.  

The families include the Bhartias of Jubilant Group, the Burmans of Dabur, the Parekhs of Pidilite Industries, and the founding family of Asian Paints.

In addition, HCCB is also considering an initial public offering (IPO) as part of its growth strategy. While the specifics of the IPO are still in the internal planning stages, the timeline for the listing remains undetermined. 

The move to attract investment comes after a year of substantial growth for HCCB. In the financial year 2023, the company reported a 40 percent increase in revenue, reaching Rs 12,840 crore (US$1.54M).  

In the first quarter of 2024, HCCB reported net gains of US$599 million and US$293 million by refranchising its bottling operations in the Philippines and parts of India, respectively. The company’s unit-based volumes grew by 1 percent during this period. 

Earlier this year, HCCB transferred control of its operations in Rajasthan, Bihar, West Bengal, and the northeastern region to local business partners. Juan Pablo Rodriguez, CEO of HCCB India, stated that this move aimed to achieve “scale and contiguity to the business.” 

Coca-Cola India remains optimistic about the country’s long-term growth prospects. The company has noted an increase in sales across the beverage market, particularly in its sparkling, hydration, and juice segments.  

India is the fifth-largest market for The Coca-Cola Company, which expects to deliver organic revenue growth of 6-7 percent in 2024. 

“As we begin a new year, we are confident that our all-weather strategy, powerful portfolio, and the harmonized system will continue to create value for our stakeholders in 2024 and for the long term,” said James Quincey, Chairman and CEO of The Coca-Cola Company. 

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