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Hindustan Coca-Cola streamlines operations in Northern India via bottling transfers
Industry News- Jan 17,24
During this transition, Kandhari Global Beverages (comprising Enrich Agro Food Products and Kandhari Beverages) will take ownership of and manage the Rajasthan market.
Hindustan Coca-Cola Beverages (HCCB), a subsidiary of The Coca-Cola Company, revealed its decision to transfer bottling operations in three northern Indian territories as part of a strategic move to streamline supply chains in the region.
During this transition, Kandhari Global Beverages (comprising Enrich Agro Food Products and Kandhari Beverages) will take ownership of and manage the Rajasthan market. Currently, they operate in various regions, including Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh. SLMG Beverages will own and operate the Bihar market, extending its operations from Uttarakhand, parts of Uttar Pradesh, Madhya Pradesh, to Bihar. Moon Beverages will handle the Northeast market and select areas of West Bengal, adding to its existing operations in Delhi and Uttar Pradesh.
The re-franchising of bottling operations aims to optimise the supply chain in the region and enhance operational efficiency, as stated in the company's announcement.
Juan Pablo Rodriguez, CEO of HCCB India, emphasized the significance of this business transfer, stating that it enables appropriate investments across the business and brings scalability and continuity. He expressed confidence in the long-term growth prospects of the beverages business in India and expects the move to accelerate the Coca?Cola system, ensuring market success and delivering greater value to local communities.
This announcement follows HCCB's 2019 divestment of bottling operations in four northern Indian territories, reflecting the company's commitment to optimizing resources, expanding its distribution network, and creating regional scale.
Coca-Cola collaborates with bottling partners for manufacturing and distributing its beverages in designated markets. In India, HCCB operates as the company's owned bottling business, working with 11 bottlers across 54 bottling plants in the country. HCCB, the largest bottler in India with 16 operational factories, will transfer two factories in West Bengal and one in Bihar to third-party bottlers after the transition.
Simultaneously, HCCB is constructing new plants in Telangana and Maharashtra, with plans to invest Rs 3,000 crore in Gujarat for a juice and aerated drinks facility. Sundeep Bajoria, Vice President, India Operations for Coca?Cola India, emphasized the commitment to building stronger and more sustainable local businesses in India, directing investments into innovation, infrastructure, technical capabilities, talent acquisition, and business expansion.
This strategic move aligns with Coca-Cola's continued investments in the Indian market, driven by improved infrastructure and rural electrification, as highlighted by John Murphy, president and chief financial officer at the Coca-Cola Company, in March of the previous year.
Source: Mint
Hindustan Coca-Cola
Kandhari Global Beverages
SLMG Beverages
Coca-Cola Company
HCCB
Juan Pablo Rodriguez
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