Coca-Cola sells 40% stake in Hindustan Coca-Cola Holdings to Jubilant Bhartia Group 

INDIA – The Coca-Cola Company has entered into an agreement with India’s Jubilant Bhartia Group to divest a 40% stake in Hindustan Coca-Cola Holdings (HCCB).  

While financial details remain undisclosed officially, reports from The Economic Times suggest the transaction is valued at Rs 12,500 crore (US$1.47 billion). 

The sale marks a significant milestone for Coca-Cola, aligning with its global asset-light strategy, which involves refranchising bottling operations to local business partners. 

“We welcome Jubilant Bhartia Group to the Coca-Cola System in India. With its diverse experience in various sectors, Jubilant brings decades of expertise that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers,” said Sanket Ray, Coca-Cola India President. 

HCCB, which operates 16 factories across India and produces over 60 beverage products, including Coca-Cola, Sprite, Minute Maid, and Thums Up, has seen remarkable financial growth.  

For the fiscal year ending March 31, 2024, the company reported a three-fold increase in net profit to Rs 2,808.31 crore (US$332.8 million), while revenue grew by 10.10% to Rs 14,021.54 crore (US$1.67 billion).  

Profit before tax also surged to US$440.7 million. 

Jubilant Bhartia Group’s entry is expected to complement Coca-Cola’s strengths and further enhance its market presence.  

Juan Pablo Rodriguez, CEO of HCCB, said, “This strategic investment represents an important milestone in our journey. Jubilant Bhartia Group’s expertise complements our strengths, ensuring we continue delivering exceptional value to stakeholders while driving innovation and sustainable progress.” 

Earlier this year, HCCB implemented several changes to streamline operations, including refranchising operations in several Indian states.  

Additionally, the bottling plant in Bidadi Industrial Area achieved carbon-neutral certification, the first in the region to meet the PAS 2060 international standard. 

India remains Coca-Cola’s fifth-largest market globally, reflecting the significance of the company’s growth strategy and sustainability focus in the region. 

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