Hindustan Coca-Cola sells North Gujarat bottling unit to Kandhari for US$229.45M
INDIA – Hindustan Coca-Cola Beverages Ltd (HCCB), the bottling arm of Coca-Cola in India, has sold its North Gujarat bottling operations to Kandhari Global Beverages Private Limited for approximately Rs 2000 crore (US$229.45M), pending regulatory approvals.
HCCB stated, “We have agreed to transfer the North Gujarat bottling operations currently operated by Hindustan Coca-Cola Beverages Pvt. Ltd.”
The company highlighted that this move ensures adequate investment across its business while enhancing scale and operational contiguity.
Post-transaction, Coca-Cola’s direct stake in bottling via HCCB, which runs 15 plants, will drop to 40%, with 10 independent franchise partners managing the rest.
This divestiture aligns with HCCB’s asset-light strategy, following similar transfers of company-owned bottling operations in Rajasthan, Bihar, parts of West Bengal, and the Northeast in FY24.
Despite these sales, HCCB invested Rs 1,963 crore (US$225.21M) in FY24 to boost manufacturing capacity nationwide.
Financially, the company reported a significant rise in net profit to Rs 2,808.3 crore (US$322.18M) in FY24, up from Rs 812.5 crore (US$93.2M) in FY23, with consolidated revenue from operations increasing 10.10 percent to Rs 14,021.54 crore (US$1.6B), per Tofler data.
The North Gujarat sale reflects HCCB’s focus on optimizing its portfolio while maintaining growth momentum.
RCPL opens bottling plant
Meanwhile, competition intensifies as Reliance Consumer Products Limited (RCPL) expands in the beverage sector. RCPL recently launched a Rs 250 crore (US$28.68M) bottling plant in Guwahati, spanning six lakh sq. ft., with an initial capacity of over 10 crore litres for carbonated soft drinks and nearly 18 crore litres for packaged drinking water.
The facility, equipped with advanced technology, features two bottling lines—a 600 bottles per minute (BPM) carbonated soft drink line and a 583 BPM water line.
It produces brands like Campa Cola, Campa Orange, Campa Lemon, Power Up, and packaged water under Independence and Sure Water, primarily serving Assam, Northeast India, and North Bengal, with flexibility to supply other regions.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
