Bhartiya family is buying 40% stake in HCCB: The company makes bottles for Coca Cola, the deal will be for ₹10,000 crore
Jubilant Bhartia Group’s promoter Bhartia family has bought 40% stake in Hindustan Coca-Cola Beverages (HSBC), the company that makes bottles for Coca-Cola India. This is the biggest acquisition of Bhartia family till date. The company has not disclosed the deal amount on its part, but according to media reports, this deal is worth Rs 10,000 crore.
Coca-Cola India President Sanket Ray said that Jubilant has brought decades of rich experience with experience in different sectors. This will help in accelerating Coca-Cola’s system.
The deal will be funded through equity and debt
According to reports, this deal will be funded through equity and debt (loan). Bhartia family, led by Shyam and Hari Bhartia of Jubilant Group, is contributing Rs 5,000 crore. While the remaining amount will be given by Goldman Sachs. Goldman Sachs is funding this deal under a special purchase vehicle (SPV).
India is the fifth largest market for Coca Cola globally
India is the fifth largest market for Coca Cola globally. The company is selling bottling operations globally as part of its asset-light strategy. In India, the company franchised its bottling operations to its existing bottlers in three major markets – Rajasthan, Bihar, North-East and parts of West Bengal.
Coca-Cola operates in the Indian market with two entities – Coca-Cola India and Hindustan Coca-Cola Beverages Pvt Ltd. It is the bottling arm of the company.
Coca-Cola India, which looks after branding and other businesses, recorded a consolidated revenue of Rs 4,713.38 crore in FY24. During this period, its profit fell by 41.82% to Rs 420.29 crore.
Whereas in FY 2024, HCCBL generated a revenue of Rs 14,021.54 crore. This was 10.10% more than FY 2023. The company’s net profit increased three times to Rs 2,808.31 crore.
HCCBL manufactures and sells 60 products in 7 different categories. Its products include products like Coca-Cola, Thums Up, Sprite, Minute Maid, Maja, Smartwater, Kinley, Limca, Fanta.
