Hindustan Coca-Cola Beverages (HCCB), the bottling arm of beverage giant Coca-Cola, is divesting company-owned bottling operations in specific regions of North, East, and Northeast India. This strategic move involves transferring operations to three existing franchise bottlers, namely Moon Beverages, SLMG Beverages, and Kandhari Global Beverages.
Moon Beverages, currently overseeing franchise operations in Delhi and Uttar Pradesh, will now own and operate the northeast market and certain areas in West Bengal. Sanjeev Agarwal, chairman of MMG Group and Moon Beverages’ promoter, is known for operating McDonald’s in northern and eastern India. Meanwhile, the Rajasthan market will be taken over by Kandhari Global Beverages, encompassing Enrich Agro Food Products and Kandhari Beverages.
This divestiture aligns with Coca-Cola’s global policy, allowing the company to concentrate more on brand management and strategy while delegating the asset-heavy bottling operations to experienced franchisees.
Juan Pablo Rodriguez, Chief Executive of HCCB India, emphasized the significance of this business transfer, stating, “It ensures the right level of investments can be undertaken in all parts of the business, while bringing both scale and contiguity to the business.”
HCCB, boasting 16 factories across India, considers the country its fifth-largest market globally. Sundeep Bajoria, VP of India Operations for Coca-Cola, expressed commitment to a smooth transition with minimal disruption for customers, consumers, and employees, highlighting collaborative efforts between HCCB, partner bottlers, and franchise bottling partners.
This moves positions Coca-Cola to optimize its operational focus, enhance efficiency, and foster growth in the dynamic Indian market.