NEW DELHI: Jubilant Bhartia Group, a multi-billion conglomerate with interests across sectors, such as pharma and QSR, will acquire a 40% equity stake in Hindustan Coca-Cola Holdings (HCCH) through Jubilant Beverages, for over Rs 10,000 crore. HCCH is the parent company of Hindustan Coca-Cola Beverages (HCCB), the largest Coca-Cola bottler in the country.
Both companies announced the deal on Wednesday, without disclosing the value or financial specifics. The investment will contribute to HCCB’s ongoing success and help strengthen its position in the Indian market, says a joint statement.
Shyam S Bhartia, founder and chairman, and Hari S Bhartia, founder and co-chairman of Jubilant Bhartia Group, said, “India is one of the largest and fastest growing beverage markets globally and a key focus within the TCCC (The Coca Cola Company) ecosystem. Jubilant Bhartia Group operates India’s largest food services company that has a proven track record of operational excellence and successful partnerships with global brands. Our deep understanding of the Indian market, combined with TCCC’s global perspective, will further enhance HCCB’s value and accelerate its impressive growth trajectory. This investment underscores our belief in the significant long-term growth potential of India’s F&B sector and aligns with our strategic intent to expand and diversify into high-growth industries.”
The Bhartia family holds exclusive franchise rights for Domino’s Pizza, India’s largest food services brand, through their group company Jubilant Foodworks. The group also comprises four listed companies: Jubilant Pharmova, Jubilant Ingrevia, Jubilant FoodWorks and the flagship Jubilant Industries.
Sanket Ray, president of Coca-Cola India & Southwest Asia operating unit, said, “With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the CocaCola system, enabling us to win in the market and provide greater value to local communities and consumers.” The deal is subject to regulatory approval.
Coca-Cola is continuing to drive sustainable, long-term growth by investing in the opportunities available in India, a statement said. The Atlanta-headquartered firm with popular soft drink brands Coke and Thums Up is divesting bottling operations globally as part of its asset-light strategy. This is similar to its rival PepsiCo.