Coca-Cola Announces Divestment of Company-Owned Bottling Operations in Three Indian Regions

In a significant strategic move, Coca-Cola has announced the transfer of company-owned bottling operations in three key territories in North India. Hindustan Coca-Cola Beverages Pvt Ltd (HCCB), the company's bottling arm, is divesting its operations in Rajasthan, Bihar, North-East, and parts of West Bengal to existing independent bottlers. This decision reflects Coca-Cola's continued commitment to navigating India's dynamic beverage market.

As the fifth-largest market for the global beverage giant, India plays a pivotal role in its business operations. With this divestment, the territories of North, North-East, and West Bengal will now be entirely operated by independent bottlers. Coca-Cola presently collaborates with 11 bottling partners in India, encompassing company-owned HCCB, collectively managing 54 plants across the country.

This move follows a similar refranchising exercise undertaken by the company in 2019 in the Northern region. The Rajasthan market will now be under the ownership and operation of Kandhari Global Beverages, already active in parts of Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh.

Simultaneously, the Bihar market will transition to the ownership and operation of SLMG Beverages Pvt. Ltd., currently serving regions in Uttarakhand, parts of Uttar Pradesh, Madhya Pradesh, and Bihar.

Juan Pablo Rodriguez, CEO of HCCB India, highlighted the significance of this business transfer, stating, "This ensures the right level of investments can be undertaken in all parts of the business, while bringing both scale and contiguity to the business. We are committed to the long-term growth prospects of our beverages business in India and believe this move will help accelerate the Coca‑Cola system."

HCCB, with 16 factories currently operational in India, has been actively expanding its presence with plans to establish new plants in states like Gujarat, Telangana, and Maharashtra. Sundeep Bajoria, Vice President, India Operations, Coca‑Cola India, emphasized the company's commitment to building stronger and more sustainable local businesses in India.

He stated, "As we set ourselves for further growth in the Indian market, these transfers will direct investments into innovation, infrastructure, technical capabilities, talent acquisition, and business expansion while strengthening existing capabilities to deliver unparalleled beverage experiences to our consumers." This strategic realignment aligns with Coca-Cola's global strategy to focus on core competencies and foster robust partnerships with its bottling network worldwide.

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