Dabur & Jubilant Group eye 40% stake in Coca-Cola India's bottling arm HCCB

  • Industry News
  • Sep 02,24
HCCB, which handles Coca-Cola's bottling operations in southern and western India, reported a 40% year-on-year revenue increase to Rs 128.4 billion in FY23, with net profits more than doubling to Rs 8.09 billion.
Dabur & Jubilant Group eye 40% stake in Coca-Cola India's bottling arm HCCB


The Burman family of Dabur and the Bhartia family, promoters of the Jubilant Group, are nearing a deal to acquire a 40% stake in Hindustan Coca-Cola Beverages (HCCB) for Rs 108-120 billion. This acquisition values Coca-Cola India’s wholly owned bottling subsidiary at Rs 270-300 billion, according to sources familiar with the matter.

The bids were submitted over the weekend, and Coca-Cola's parent company will soon decide whether to involve one or two co-investors or create an investor consortium. A final decision is expected by the end of the fiscal year. 

Earlier this year, Coca-Cola reached out to various Indian business houses and billionaire family offices, including those of the Parekhs of Pidilite Industries and the promoter family of Asian Paints, to gauge their interest in HCCB. While only the Burmans and Bhartias proceeded to bid, the structure may involve their flagship companies, Dabur India and Jubilant FoodWorks, collaborating to leverage synergies in their existing FMCG and food portfolios.

HCCB, which handles Coca-Cola's bottling operations in southern and western India, reported a 40% year-on-year revenue increase to Rs 128.4 billion in FY23, with net profits more than doubling to Rs 8.09 billion. The potential stake sale is part of Coca-Cola’s broader strategy to reduce asset-heavy operations and focus on brand building, innovation, and competitive strategies, as the company moves towards an asset-light business model.

Coca-Cola’s decision to seek marquee business partners has caused friction with some independent bottlers, who believe they should have been offered the additional stake. Despite this, Coca-Cola is aiming for a significant premium, potentially valuing HCCB at up to $4-5 billion.

Globally, Coca-Cola’s bottling operations are managed by a mix of listed and privately held companies, with its top five bottling partners contributing 42% of its total unit case volume in 2022.
(ET)

Related Stories

Plastic, Packaging & Printing
Ashok Chaturvedi highlights AI role in flexible packaging waste at ElitePlus++24

Ashok Chaturvedi highlights AI role in flexible packaging waste at ElitePlus++24

The summit also features specialised sessions focused on sustainability, including panel discussions that address the critical role of flexible packaging in green energy, as well as emerging film ex..

Read more
Plastic, Packaging & Printing
Dabur & Jubilant Group eye 40% stake in Coca-Cola India's bottling arm HCCB

Dabur & Jubilant Group eye 40% stake in Coca-Cola India's bottling arm HCCB

HCCB, which handles Coca-Cola's bottling operations in southern and western India, reported a 40% year-on-year revenue increase to Rs 128.4 billion in FY23, with net profits more than doubling to Rs..

Read more
Process Equipment
Dabur to invest Rs 4 billion in TN for new plant; Over 250 jobs expected

Dabur to invest Rs 4 billion in TN for new plant; Over 250 jobs expected

Dabur, renowned for its diverse product range including Real fruit juices, Meswak and Babool toothpastes, and Vatika hair oils, was founded in 1884.

Read more

Related Products

Collar Type Servo Auger Machine

PACKAGING, BARCODING & PRINTING EQUIPMENT

All India Packing Machines offers collar type servo auger machine. Read more

Request a Quote

Shrink Tunnel

PACKAGING, BARCODING & PRINTING EQUIPMENT

Vista Technopack Machines offers a range of online shrink tunnel with L sealers. Read more

Request a Quote

TTO Printer - TTO Ao5

PACKAGING, BARCODING & PRINTING EQUIPMENT

Aztec Fluids & Machinery offers a wide range of TTO printer - TTO AO5.

Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back