Bhartia Family to Acquire 40% Stake in Hindustan Coca-Cola Beverages for ₹12,500 Crore – Major Move in India’s Competitive Beverage Market

The Bhartia family of the Jubilant Group is set to acquire a 40% stake in Hindustan Coca-Cola Beverages (HCCB), Coca-Cola India's bottling arm, for ₹12,500 crore. The deal, expected to be officially announced soon, will be the family’s largest acquisition to date. The Bhartia family will invest ₹5,000 crore, with the remaining amount being financed by Goldman Sachs, which is funding a special purpose vehicle (SPV) set up for the transaction.

HCCB, which produces and sells 37 products in categories such as soft drinks, juices, and energy drinks, has been a significant revenue contributor to Coca-Cola India. The company reported a 9.2% revenue growth to ₹14,021 crore in the 2023-24 financial year and a remarkable 247% increase in net profit to ₹2,808.3 crore. Goldman Sachs’ involvement will prevent the Bhartia family from over-leveraging their conglomerate. The investment will eventually be syndicated to domestic mutual funds and foreign banks. Previously, the Bhartias explored financing options with Bain Credit and Apollo Global Management. This acquisition aligns with Coca-Cola’s asset-light strategy, similar to PepsiCo’s outsourcing model through Varun Beverages.

It allows Coca-Cola to tap into the Bhartia family’s extensive experience in the food and beverage sector, particularly through Jubilant FoodWorks, which operates Domino’s Pizza in India. India, the fifth-largest market for Coca-Cola by volume, offers substantial growth potential, with the company planning a $1.5 billion capital expenditure over the next five years. The acquisition comes as the Indian beverage market becomes more competitive, with Reliance Consumer Products Ltd recently reviving the Campa brand, which has disrupted the market with aggressive pricing. HCCB continues to expand its distribution in Tier-II and Tier-III cities.