Coca-Cola sells 40% HCCB stake to Jubilant
Coca- Cola has divested 40 percent share of its Indian bottler Hindustan Coca-Cola Beverages to the Jubilant Bhartia Group. Specific details of the transaction were not revealed, but it estimated at about ₹10,000 crore ($1.47 billion). The present transaction is rather critical to both companies. Coca cola focused on its corporate strategy of reducing capital intensive assets for enhancing business operations efficiency and Jubilant Bhartia which controls Domino’s Pizza in India through Jubilant FoodWorks enters into the fast emerging non alcoholic beverages segment.
The consumption in India of beverages is forecasted to expand from 17 billion US dollars in 2023 to 24 billion US dollars in 2027.
Indeed, to HCCB, the sale ushers in increased market place jurisdiction as envisaged under the convention in Articles 11 and 12 . It operates 16 sites across the country and has already made regional divestitures earlier this year. President of Coca-Cola India, Sanket Ray said: ‘We are optimistic about the agreement and, given the vast experience that Jubilant has, the Coca-Cola ecosystem in India will expand further, faster’bour. The Chairman of Jubilant Bhartia Shyam and Hari Bhartia characterised the deal in terms of enhancing their company’s diversification strategy into growth based industries.
The acquisition also signifies Jubilant’s need to identify new opportunities to focus and hence diversification.
The transaction is currently still under review by the authorities though should be made in the next months. This partnership has the opportunities to shift the entire dynamics of beverages in India and at the same time enable both the companies to achieve their desired growth.
