India’s soft drink market is gearing up for a fierce showdown as industry giants like Coca-Cola, PepsiCo, and Reliance, the owner of the Campa brand, accelerate their distribution and manufacturing operations in anticipation of the summer rush.
Snapping Up a Huge Stake!
The Jubilant Bhartia Group is recalibrating its approach after snapping up a 40% stake in Hindustan Coca-Cola Beverages (HCCB), Coca-Cola India’s bottling arm, for a hefty ₹12,500 crore.
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Reliance Makes Its Moves
Meanwhile, Reliance Consumer Products (RCPL) is aggressively expanding its Campa brand into the northern and western regions, leveraging quick commerce platforms like Swiggy Instamart, almost two years after it reintroduced the brand in Andhra Pradesh and Telangana. Sources close to the matter suggest that Reliance is offering Campa products at lower prices than its competitors, coupled with higher trade margins.
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PepsiCo’s bottling partner, Varun Beverages (VBL), is also gearing up for the battle by raising ₹7,500 crore via qualified institutional placements (QIP). This capital will be used to fuel expansion efforts and make new investments in subsidiaries and joint ventures.
According to Varun Beverages Chairman Ravi Jaipuria, soft drinks are now available in nearly four million outlets, representing about 35% of the entire FMCG market. This growth potential is sparking a distribution boom across the industry. To meet rising demand, the company is increasing its fleet of visi-coolers, with plans to add even more to its existing 1.02 million units.
