Coca-Cola and Jubilant Bhartia Group are gearing up for a sharper push on profitability in India’s high-stakes beverage market, just weeks after sealing a landmark deal. The focus is on trimming manufacturing costs, strengthening last-mile distribution and locking in better supplier terms to counter mounting competition.
On July 23, Jubilant Beverages, part of the Jubilant Bhartia Group, completed the acquisition of a 40 per cent stake in Hindustan Coca-Cola Holdings (HCCH), the parent of Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s largest bottler in India. The ₹12,500 crore transaction marks the group’s biggest investment to date. While Jubilant now holds a significant minority stake, HCCB will remain under the oversight of its board.
A leadership change is also in play. Hemant Rupani, former president of Mondelez Southeast Asia, will take over as CEO of HCCB on September 8, replacing Juan Pablo Rodriguez. Coca-Cola’s global chief, James Quincey, said during an earnings call that the tie-up with Jubilant would inject “energy, dynamism and focus” into the India operations, backed by strong marketing and innovation plans.
The move comes at a time when Reliance’s Campa Cola is on an aggressive national rollout, acquiring and building plants to challenge incumbents. Regional names like Lahori, Bindu, Storia, Roastea, Pluckk and Tru are also chipping away at market share with localised flavours and value pricing. Lahori, for instance, is pushing traditional favourites like zeera, nimboo and shikanji, while Coca-Cola and PepsiCo have responded with smaller packs and low or no-sugar variants.
India’s packaged beverages segment is expanding beyond colas into juices, flavoured waters, herbal teas, sports drinks and ready-to-drink coffees. Seasonal factors such as early monsoons have added further pressure on summer sales, making efficiency and distribution muscle more critical than ever for the big players.
