SLMG Beverages targets US$799.5M revenue in FY26 on expansion, sustainability drive 

INDIA – SLMG Beverages, one of Coca-Cola’s anchor bottlers in India, is aiming to achieve revenues of about Rs 7,000 crore (US$798.5M) in FY26.  

The company said the growth target will be supported by its expanding manufacturing capacity, distribution reach, and sustainability initiatives. 

The company, which operates eight manufacturing facilities across Uttar Pradesh, Bihar, and Uttarakhand, has been scaling up investments in new plants and distribution networks to meet rising demand.  

Director Vivek Ladhani noted that despite current pressure on EBITDA margins due to rationalisation and fresh investments, profitability is expected to stabilise in the medium term, with margins projected to return to 18–20%. 

Until recently, SLMG held the position of being Coca-Cola’s largest independent bottler in India. That changed after the Jubilant Group, led by the Bhartias, acquired a 40% stake in Hindustan Coca-Cola Beverages (HCCB), Coca-Cola India’s wholly owned bottling arm.  

The acquisition shifted control of the southern and western markets to Jubilant, while SLMG continues to serve key northern markets. 

Coca-Cola’s bottling strategy in India differs from PepsiCo’s approach. PepsiCo operates exclusively through Varun Beverages, its listed bottling partner, while Coca-Cola continues to work with multiple independent bottlers.  

Currently, there are around 15 bottlers for Coca-Cola in India, though the number has been reducing over time. 

SLMG currently caters to nearly 400 million consumers, almost one-third of India’s population. However, per capita soft drink consumption in its markets stands at just 25–30 bottles annually, far lower than the 400–500 bottles consumed in developed economies. Even neighbouring countries such as Pakistan and Bangladesh report higher per capita figures. 

“This provides a massive runway for growth. Our aim is to expand at 20% annually, almost three times the GDP growth rate. Even during COVID and extreme rainfall seasons, we have consistently delivered double-digit growth,” Ladhani said. 

He also highlighted that competition in India’s beverage market extends beyond the long-standing Coke–Pepsi rivalry. Growth opportunities are emerging in tea, coffee, coconut water, and fruit-based drinks.  

With government subsidies encouraging commercialisation of regional produce such as litchi in Bihar and mosambi in Maharashtra, the fruit-based beverages category is expanding steadily. 

On the sustainability front, SLMG reported reducing carbon emissions by approximately 16,000 metric tonnes in 2024 compared to the previous year.  

The company attributed the decline to its green initiatives, with 90% of its fuel needs met through biofuels and 38% of energy requirements sourced from solar power. 

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