The Coca-Cola Company has announced that it has reached an agreement with the Jubilant Bhartia Group, a multi-billion conglomerate with global presence in diverse sectors, which will acquire a 40% stake in Hindustan Coca-Cola Holdings Pvt. Ltd., the parent company of the largest Coca-Cola bottler in India, Hindustan Coca-Cola Beverages Pvt. Ltd.
Media reports said the transaction is said to be valued between ₹12,000 crore and ₹12,500 crore.
In India, The Coca-Cola Co bottles products such as Thums-Up, Sprite, Fanta, Limca and flagship brand Coca-Cola through subsidiary Hindustan Coca-Cola Beverages Pvt. Ltd as well as a set of independent bottling companies. Jubilant Bhartia Group will acquire 40% in Hindustan Coca-Cola Holdings, the parent of HCCB, through Jubilant Beverages Ltd. HCCB operates 13 factories, serving 236 districts across 12 states in India’s south and west.
The Coca-Cola System in India is continuing to drive sustainable, long-term growth by investing in the opportunities available in India. “The Jubilant Bhartia Group will bring invaluable experience and insights to our business as we continue to grow our presence in India,” said Henrique Braun, president of International Development for The Coca-Cola Company. “Jubilant Bhartia Group brings a track record of building and growing consumer and other businesses in India with international partners. They are also committed to investing in the communities they serve.”
The Coca-Cola Company’s locally owned franchise partners in India are positioned to drive successful outcomes. The investment by the Jubilant Bhartia Group family will contribute to the company’s ongoing success and help strengthen its position in the Indian market, the company said.
Shyam S Bhartia, founder and chairman and Hari S Bhartia, founder and co-chairman of the Jubilant Bhartia Group, said the investment is an ideal addition to their business. “The Coca-Cola Company is home to some of the most respected global brands and we are delighted to be associated with them,” Bhartia said. “Together, we will leverage opportunities to grow the business to greater heights and ensure more Indian consumers can enjoy The Coca-Cola Company’s refreshing portfolio of iconic local and international brands.”
Sanket Ray, president of the Coca-Cola India & Southwest Asia operating unit, said, “We welcome the Jubilant Bhartia Group to the Coca-Cola System in India. With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers.”
The transaction is subject to regulatory approval. Rothschild & Co acted as exclusive financial adviser to The Coca-Cola Company.
The Coca-Cola Company is a total beverage company with products sold in more than 200 countries and territories. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Gold Peak and Ayataka. The juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS.
The Jubilant Bhartia Group is a multi-billion conglomerate with global presence in diverse sectors such as pharmaceuticals, contract research and development services, proprietary novel drugs, life science ingredients, agri products, performance polymers, food service (QSR), food, auto, consulting in aerospace and oilfield services.
With a 43,000 global workforce, the group has four listed companies on India Stock Exchanges – Jubilant Pharmova Limited, Jubilant Ingrevia Limited, Jubilant FoodWorks Limited and Jubilant Industries Limited.
