CORPORATE
Jubilant Bhartia set to acquire 40% stake in Coca-Cola bottler HCCB
- IBJ Bureau
- Dec 12, 2024
The Jubilant Bhartia Group has said that it will buy a 40 per cent stake in Coca-Cola’s largest bottler in India, Hindustan Coca-Cola Beverages (HCCB), as the Indian conglomerate plans to foray into the country’s “high-growth” beverage sector.
The group, which owns Domino’s Pizza’s Indian franchisee Jubilant FoodWorks, has not disclosed the financial terms of the deal.
However, media reports have said that the deal is worth about Rs 12,500 crore.
The investment “aligns with our strategic intent to expand and diversify into high-growth industries,” Hari S Bhartia, the group’s founder and co-chairman has said in a statement.
The Indian beverage sector is seeing steady growth, with revenue generated from non-alcoholic beverages expected to reach over $24 billion by 2027 from $17 billion in 2023, a report from data firm Statista shows.
The investment is also expected to strengthen the position of Coca-Cola-owned HCCB after media reports had showed that the bottler had divested operations in three regions in the country earlier this year.
As of November, the bottler had 16 factories in India.
Jubilant Bhartia, which has four listed companies in the Indian stock exchanges, has said that it will buy the stake in HCCB via its entity Jubilant Beverages.
Morgan Stanley is the exclusive financial adviser to the deal, the group has added.
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