Kandhari Global Beverages seeks approval to acquire Hindustan Coca-Cola assets in Gujarat and Diu
INDIA – Kandhari Global Beverages has applied for regulatory approval to acquire assets from Hindustan Coca-Cola Beverages (HCCB) in Gujarat and the union territory of Diu, according to a filing with the Competition Commission of India (CCI).
The proposed acquisition is part of Kandhari Global Beverages’ strategy to expand its geographical footprint.
The company, which operates in states such as Haryana, Himachal Pradesh, and Punjab, is looking to strengthen its market presence in western India.
This move follows The Coca-Cola Company’s December 2023 agreement to sell a 40% stake in Hindustan Coca-Cola Holdings, HCCB’s parent company, to Jubilant Bhartia Group. The investment is intended to support Coca-Cola’s growth in India and reinforce its market position.
In addition to this transaction, HCCB has been divesting its bottling operations as part of an asset-light strategy.
In early 2024, it sold bottling plants to SLMG Beverages, Moon Beverages, and Kandhari Global Beverages, with the latter acquiring assets in Rajasthan for approximately Rs 2,000 crore (US$229.45 million), pending regulatory approvals.
These divestitures have led to a shift in Coca-Cola’s bottling model in India. Post-transaction, its direct stake in bottling via HCCB will reduce to 40%, with the remaining operations managed by 10 independent franchise partners.
Despite these sales, HCCB invested Rs 1,963 crore (US$225.21 million) in FY24 to enhance manufacturing capacity.
Financially, HCCB reported a strong performance in FY24, with net profit surging to Rs 2,808.3 crore (US$322.18 million), up from Rs 812.5 crore (US$93.2 million) in FY23.
Revenue from operations also grew by 10.1% to Rs 14,021.54 crore (US$1.6 billion), according to Tofler data.
In December, HCCB inaugurated a Greenfield manufacturing facility at Banda Thimmapur in Siddipet, Telangana.
The factory is built on a 49-acre site and represents a total planned investment of Rs 2,091 crore (US$246.89 million), of which Rs 1,409 crore (US$166.4 million) has already been utilized for the current phase.
The state-of-the-art facility is equipped with seven advanced production lines and is designed to combine cutting-edge manufacturing technology with sustainable practices.
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