The Coca-Cola Company is preparing for a potential public listing in India of Hindustan Coca-Cola Holdings (HCCH), the parent of its biggest bottling partner in the country, Hindustan Coca-Cola Beverages (HCCB).
In a statement yesterday (1 June), the beverage giant said it is considering a possible public listing for the bottler next year, as well as the sale of part of its stake in HCCH as part of the listing process.
The move follows the acquisition of a 40% stake in HCCH by Indian family-owned conglomerate Jubilant Bhartia Group last July.
Coca-Cola said the possible listing will mark a “significant milestone”, positioning the business “well to capitalise on the opportunities in the Indian market”.
Early work has begun on a possible flotation on India’s Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), with the plans being subject to market conditions and regulatory and other approvals.
Coca-Cola has appointed Rothschild & Co as adviser on the potential listing.
The Coca-Cola Company president for India and southwest Asia and emerging large markets lead Sanket Ray said: “This announcement is another important step for HCCB.
“Under the leadership of our trusted partners in Jubilant Bhartia Group, following the listing the bottler will be well placed to continue to pursue growth.
“The Coca-Cola Company will stay invested in this important bottler and focus on growing our portfolio of global and local brands in India.”
HCCB and its parent firm were established in 1997. As of 31 March, the group operated with more than 2,000 distributors and employs around 5,000 staff.
The bottler runs 14 plants across ten Indian states and works with eight co-packers. It manufactures, packages, distributes and sells Coca-Cola’s portfolio across sparkling and still beverages, including brands such as Coca-Cola, Thums Up, Sprite, Fanta, Limca, Maaza and Minute Maid.
Meanwhile, the soft drinks giant has been recently investing to expand its bottling capabilities.
Last month, Coca-Cola Consolidated, the US Coca-Cola bottler, committed $35m to add a new production line at its site in Indiana.
Earlier this year, Coca-Cola Canada Bottling announced a C$141m ($102.9m) investment to expand its manufacturing and distribution facility in Brampton, Ontario.
In South Africa, the Coca-Cola Company and two bottlers also plan to inject more than $1.05bn into local operations by 2030. The money will be used to expand production capacity, among other initiatives.
“The Coca-Cola Company readies listing of India bottler” was originally created and published by Just Drinks, a GlobalData owned brand.
