SLMG Beverages, one of Coca-Cola India’s largest bottling partners, is set to pump $1 billion (approx. ₹8,300 crore) into expanding its operations across Uttar Pradesh, Bihar, and Uttarakhand over the next six years. The move underscores the company’s bullish outlook on India’s beverage market, which it expects to grow in high double digits in the coming years, driven by tax reforms and rising consumer demand.
The investment, averaging $150 million annually, will be channeled into new manufacturing units, enhanced warehousing capacity, and a stronger logistics fleet, alongside expanding the number of coolers and fridges in the market. “Capex is critical—whether it is warehouses, trucks, distributors, or fridges. India has the potential to grow in high double digits for the next five to seven years, and we intend to capture that,” said Paritosh Ladhani, Joint MD, SLMG Beverages.
Currently, the company runs six plants in Uttar Pradesh and one in Bihar, with a second Bihar unit slated to begin production in January. This expansion will raise total capacity from 22,000 bottles per minute to 27,000 bottles per minute. The Bihar plant alone has seen investments of over ₹1,200 crore.
On the warehousing front, SLMG operates 18 large facilities and is adding three more at a cost of ₹55–60 crore, fully funded through internal accruals. These warehouses, ranging from 100,000 sq. ft. to 300,000 sq. ft., can stock up to one million cases.
Distribution remains a stronghold for SLMG, with coverage across 800,000 retail outlets via more than 3,000 distributors and 2,000 sub-distributors. Around 30% of its logistics fleet has already transitioned to electric vehicles, with plans to raise that to 60% in the coming years.
The company is also banking on consumer-friendly pricing to spur demand, having slashed rates across its water and juice portfolio in line with GST reductions. For instance, one-litre water bottles now retail at ₹18 (down from ₹20), while a 600 ml Maaza pack has dropped from ₹40 to ₹35. “Whenever prices go down, consumers don’t just buy a little more—they end up consuming much more. We expect 13–15% growth this quarter, with 2–3% directly from GST cuts,” Ladhani noted.
With EBITDA margins currently at 12–13% and further efficiency gains expected, SLMG projects high single-digit revenue growth this fiscal and aims for double-digit growth by FY26.
“As India’s oldest and largest Coca-Cola bottler, we’ve always bet big on the country’s growth story. With GST cuts boosting sentiment and our expansion plans in motion, we are confident of sustaining momentum,” Ladhani added.