The Bhartia family of Jubilant Bhartia Group is set to acquire a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the wholly owned bottling arm of Coca-Cola India, for Rs. 12,500 crore. The deal, expected to be formally announced later today, marks the family’s largest acquisition to date, with Goldman Sachs financing the transaction.
Executives familiar with the development confirmed that the Bhartias will contribute approximately Rs. 5,000 crore themselves, while the remainder of the funding will be supported by Goldman Sachs through a special purchase vehicle (SPV). This acquisition is a strategic expansion for the Bhartias, who currently hold exclusive franchise rights for Domino’s Pizza in India through Jubilant Foodworks Ltd.
India remains Coca-Cola’s fifth-largest market by volume, with significant growth potential due to low per capita consumption of soft drinks. The US beverage giant is looking to adopt an asset-light model, similar to rival PepsiCo, which outsourced its bottling operations to Varun Beverages Ltd. The deal comes amid increasing competition in India’s beverage sector, with Reliance Consumer Products reviving the Campa brand and offering competitive pricing.
HCCB’s revenue for FY24 rose 9.2% to Rs. 14,021 crore, while net profit surged 247% to Rs. 2,808.3 crore. The company, which operates 13 factories, plans to invest $1.5 billion in capital expenditure over the next five years to enhance production capacity.
This acquisition underscores the Bhartia family’s ambitions to diversify their business interests and tap into India’s growing beverage market.