SLMG Beverages to invest US$919.6M in expanding Coca-Cola bottling operations
INDIA – SLMG Beverages, a subsidiary of Ladhani Group and the largest independent bottler of Coca-Cola in India, has announced plans to invest Rs 8,000 crore (US$919.6M) to set up new bottling plants and expand existing facilities.
The company aims to strengthen its presence across key markets, including Uttarakhand, Uttar Pradesh, Madhya Pradesh, and Bihar.
Paritosh Ladhani, Joint Managing Director of SLMG Beverages, stated that the company is targeting global recognition within Coca-Cola’s bottling network.
“Currently, we are among the top 15 bottlers globally for Coca-Cola and its largest independent bottler in India. We aim to be among the top ten Coca-Cola bottlers worldwide in the coming years. We have rapid expansion plans and will be investing about a billion dollars in the beverage business over the next five years,” he said.
As part of this growth strategy, SLMG Beverages is constructing a new plant in Bihar’s Buxar region with an investment of Rs 1,200 crore (US$137.9M).
Additionally, another bottling plant in Bihar will be developed with an estimated Rs 1,500 crore (US$172.4M) investment. The company will also expand its facilities in Uttar Pradesh and other territories.
SLMG Beverages currently operates eight bottling plants with an installed capacity of 33,000 bottles per minute. The company expects to operate 13-14 large-scale plants within the next five years, further increasing production capacity.
With these investments, SLMG Beverages anticipates significant revenue growth. The company projects its revenue to exceed Rs 8,000 crore (US$919.6M) in the 2025-26 fiscal year, with a long-term goal of doubling revenue to Rs 20,000 crore (US$2.3B) within five years.
The company’s growth expectations are driven by the high consumption potential in Uttar Pradesh and Bihar, where increasing economic activity is fueling demand.
“If UP and Bihar continue growing at the current CAGR, then our projected growth rate of 15-17% could increase to 20%,” Ladhani noted.
This follows SLMG Beverages’ acquisition of bottling rights for Bihar from Coca-Cola’s bottling arm HCCBL, in line with Coca-Cola’s global asset-light strategy.
The company will fund its expansion through internal accruals and debt, without seeking external investment.
Beyond beverages, the Ladhani Group is also expanding its hospitality business, with plans to invest 3,000 crore over the next three to four years.
“We currently operate 500 rooms and aim to expand our inventory to 1,500 rooms in the next three years,” Ladhani stated.
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