Coca-Cola considers Hindustan Bottling IPO as Bhartia Family gains strategic control
The Bhartia family is set to play a leading role in HCCB, with Coca-Cola gradually reducing its controlling stake.
INDIA – The Coca-Cola Company is reportedly exploring the possibility of listing its Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB), as part of a broader strategic shift.
According to a report by Business Standard, the Atlanta-based beverage giant may gradually reduce its majority stake in the company over the next five years, positioning its Indian partner, the Bhartia family, as the controlling shareholder.
While no formal confirmation of an initial public offering has been made, sources familiar with the discussions indicated that an IPO is under consideration. “There’s been no explicit confirmation of an IPO, but that’s a possibility,” one source told Business Standard.
The move aligns with Coca-Cola’s ongoing global refranchising strategy aimed at adopting a more asset-light model by transferring bottling operations to local partners.
In December 2023, the Bhartia family, through its Jubilant Group subsidiary Jubilant Beverages, acquired a 40% stake in Hindustan Coca-Cola Holdings, HCCB’s parent company.
The deal, valued at Rs 12,000 crore, was financed through a combination of equity and debt arranged by the Bhartia family. While Coca-Cola currently remains the majority stakeholder, the long-term plan indicates a significant shift in ownership dynamics.
Akeel Sachak, Partner and Global Head of Consumer at Rothschild & Co., which advised Coca-Cola on the transaction, revealed that the partnership process began in 2023. The company evaluated several Indian business families before selecting the Bhartias.
He noted that their proven record as franchise operators for Domino’s played a key role in the final decision.
Meanwhile, HCCB recently announced the appointment of Hemant Rupani as its new CEO, effective September 8. Rupani will replace Juan Pablo Rodriguez, who will be taking on a new role within the Coca-Cola system.
Rupani joins from Mondelez International Inc., where he currently serves as president for Southeast Asia, overseeing operations in countries including Indonesia, Vietnam, and the Philippines.
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