Coca-Cola sells 40% stake in HCCBL to Jubilant Bhartia Group

American soft drink maker Coca-Cola Co. sold 40 per cent of its stake in Hindustan Coca-Cola Holdings Pvt Ltd to Jubilant Bhartia Group, news agency PTI reported on Wednesday, December 11.

Hindustan Coca-Cola Holdings Pvt Ltd is the parent company of Hindustan Coca-Cola Beverages Pvt Ltd, the largest bottling arm of Coca-Cola in India. 

“The Coca-Cola Company today announced that it has reached an agreement with Jubilant Bhartia Group, a multi-billion conglomerate with global presence in diverse sectors, to acquire 40 per cent stake in Hindustan Coca-Cola Holdings Pvt Ltd, the parent company of the largest Coca-Cola bottler in India, Hindustan Coca-Cola Beverages Pvt Ltd,” according to a joint statement cited by the news agency.

The change in the company and the investment represent a significant milestone for the brand as the company continues to pursue its purpose of refreshing the world and making a difference, the statement added.

According to media reports, the deal is estimated to be worth nearly ₹10,000 crore. However, the company has not disclosed the exact amount.

“We welcome Jubilant Bhartia Group to the Coca-Cola System in India. With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers,” said Sanket Ray, President of Coca-Cola India as reported by PTI.

The Atlanta-based soft drink maker is reducing its stake in bottling operations around the world as part of its asset-light strategy. India is the fifth-largest market for Coca-Cola globally.

“This strategic investment represents an important milestone in our journey. Jubilant Bhartia Group’s expertise, complements our strengths, ensuring that we continue delivering exceptional value to our stakeholders while driving innovation and sustainable progress,” said Juan Pablo Rodriguez, chief executive officer (CEO) of Hindustan Coca-Cola Beverages, as per the news report.

Disclaimer: The promoters of HT Media Ltd, which publishes Mint, and Jubilant Bhartia Group are closely related. There are, however, no promoter cross-holdings.