Coca-Cola India has finalized the sale of its North Gujarat bottling operations to Kandhari Global Beverages Group, one of its top four independent franchise bottlers, for approximately ₹2,000 crore. This move aligns with Coca-Cola’s broader strategy to adopt an asset-light business model and streamline its operations across India.
Previously, these bottling operations were managed by Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s primary bottling subsidiary in India. HCCB is now partially owned by the Jubilant Bhartia Group, which also operates the Domino’s Pizza and Dunkin’ Donuts franchises in India. This follows Coca-Cola’s December 2024 sale of a 40% stake in HCCB to Jubilant Bhartia for ₹12,500 crore ($1.47 billion).
With this latest transaction, Coca-Cola’s direct stake in its Indian bottling business has dropped to 40%, with 15 manufacturing plants under HCCB. The remaining operations are handled by 10 independent franchise bottlers. A Coca-Cola India spokesperson confirmed the agreement but declined to disclose further financial details.
As quoted in MSN, the spokesperson said, “We have reached an agreement to transfer the North Gujarat bottling operations currently operated by HCCB, subject to regulatory approvals, to Kandhari Global Beverages.” Coca-Cola continues to supply concentrate to HCCB and its authorized independent bottling partners.
This sale is part of Coca-Cola’s broader refranchising initiative in India. According to the company’s global earnings report, Coca-Cola earned $303 million in 2024 from selling bottling operations in various Indian territories. In 2023, HCCB divested its bottling operations in Rajasthan, Bihar, the Northeast, and West Bengal to regional partners, including Moon Beverages, Kandhari Global, and SLMG Beverages.
“During the three months and year ended December 31, 2024, the company recorded net gains of $13 million and $303 million, respectively, from the refranchising of our bottling operations in select territories in India, including post-closing adjustments,” Coca-Cola stated in its earnings report.
The beverage giant also disclosed that it spent $7 million on transaction costs related to the refranchising process in 2024. Kandhari Global, a privately owned firm, already manages Coca-Cola’s bottling operations in Himachal Pradesh, parts of Haryana, Rajasthan, Punjab, Chandigarh, and Jammu and Kashmir.
Separately, HCCB had announced a ₹3,000 crore investment in manufacturing in Gujarat in 2023, reinforcing Coca-Cola’s long-term commitment to the Indian market, even as it shifts towards a franchise-led bottling model.
IndiFoodBev — authentic, impactful and influential
An English-language food and beverage processing and packaging industry B2B platform in print and web, IndiFoodBev is in its third year of publication. It is said that the Indian food and beverage industries represent approximately US$ 900 billion in revenues which implies more than 20% of the country’s GDP. Eliminating the wastage on the farmside can help to deliver more protein to a higher number of the population apart from generating sizable exports. The savings in soil, seeds, water, fertilizer, energy and ultimately food and nutrition could be the most immense contribution that country is poised to make to the moderation of climate change.
To improve your marketing and grow sales to the food and beverage processing and packaging industry, talk to us. Our research and consulting company IppStar [www.ippstar.org] can assess your potential and addressable markets in light of the competition. We can discuss marketing, communication, and sales strategies for market entry and growth.
Suppliers and service providers with a strategy and budget for targeted marketing can discuss using our hybrid print, web, video, and social media channels to create brand recognition linked to market relevance. Our technical writers are ready to meet you and your customers for content.
The second largest producer of fruit and vegetables in the world is continuously expanding processing capacities and delivery systems with appropriate innovative technologies. We cover product and consumer trends, nutrition, processing, research, equipment and packaging from farm to thali. Get our 2025 media kit and recalibrate your role in this dynamic market. Enhance your visibility and relevance to existing markets and turn potential customers into conversations. Ask for a sample copy of our bi-monthly in print or our weekly IndiFoodBev eZine each Wednesday.
For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in
Naresh Khanna – 10 February 2025
Subscribe Now
