The Jubilant Bhartia Group, the promoters of Jubilant FoodWorks, is set to acquire a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the Indian bottling unit of The Coca-Cola Company. This landmark transaction aligns two major corporate entities, promising significant growth for both businesses.
The deal was announced by Coca-Cola on Wednesday, confirming the agreement with Jubilant Bhartia Group, which also serves as the master franchisee for Domino’s Pizza in India. Although the financial specifics were not disclosed, industry insiders estimate the transaction to be valued at approximately ₹12,500 crore, pegging HCCB’s valuation at ₹31,250 crore. Reports suggest the Bhartias will contribute ₹4,000-₹5,000 crore from internal resources, with the remainder financed by Goldman Sachs, which is expected to back 60% of the deal.
In a joint statement, the two parties emphasized their shared vision of expanding HCCB’s footprint and enhancing its portfolio of beverages to cater to Indian consumers. HCCB, Coca-Cola’s largest bottler in India, produces an array of 37 products, including carbonated beverages, juices, and juice-based drinks.
HCCB has demonstrated strong financial performance, reporting a 9.2% increase in revenue for FY24 to ₹14,021 crore and a remarkable 247% growth in net profit to ₹2,808.3 crore. While the company primarily serves markets in southern and western India, franchise bottlers handle operations in northern and eastern regions.
The deal is also expected to facilitate an initial public offering (IPO) for HCCB within the next two years. The involvement of a prominent corporate entity like Jubilant Bhartia Group is anticipated to enhance investor confidence and market interest ahead of the IPO.
Sanket Ray, President of Coca-Cola India, highlighted the strategic advantage of the partnership, citing Jubilant’s extensive experience across diverse industries as a catalyst for accelerating growth and delivering greater value to consumers.
Shyam S. Bhartia, Founder and Chairman, and Hari S. Bhartia, Co-Chairman of Jubilant Bhartia Group, expressed their optimism about the acquisition, describing it as an “ideal addition” to their portfolio. The collaboration is poised to unlock new opportunities for both entities, furthering HCCB’s market leadership while leveraging Jubilant’s industry expertise.
This strategic partnership underscores the evolving dynamics of India’s beverage industry, setting the stage for a transformative period of growth and innovation for Hindustan Coca-Cola Beverages.
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