Thursday, June 20, 2024
Business

Coca-Cola tyransfers bottling to locals

Coca-Cola announced its decision to transfer bottling operations in three regions, namely Rajasthan, Bihar, and Northeast, along with parts of West Bengal, to local partners. Hindustan Coca-Cola Beverages (HCCB), the company’s bottling arm, will now have its operations in these territories owned by Kandhari Global Beverages, SLMG Beverages, and Moon Beverages, respectively. This move aligns with HCCB’s strategy to franchise specific regional operations to local partners, fostering strategic alliances.

Under this restructuring, Kandhari Global Beverages will own and operate the Rajasthan market. SLMG Beverages, an existing partner in Bihar, will now own and operate the bottling operations in the Bihar market. Moon Beverages, currently operating in parts of Delhi and Uttar Pradesh, will take charge of the Northeast market and select regions of West Bengal. HCCB India CEO Juan Pablo Rodriguez stated that this business transfer aims to ensure appropriate investments in all aspects of the business while enhancing scale and contiguity, contributing to long-term growth prospects.

HCCB, incorporated in 1997, manages 16 factories across India and produces and sells a variety of beverages, including Coca-Cola, Thumbs Up, Sprite, Minute Maid, Maaza, SmartWater, Kinley, Limca, and Fanta. In the fiscal year ending March 2023, HCCB reported a significant 41.51% increase in revenue from operations, reaching Rs 12,735.12 crore. The net profit for the same period surged twofold to Rs 809.32 crore, reflecting positive financial growth.

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