Coca-Cola has opted to refranchise its company-owned bottling operations in three regions in India. The beverage powerhouse announced on Friday that it is refranchising the bottling operations in Rajasthan, Bihar, North-East, and parts of West Bengal from its bottling subsidiary, Hindustan Coca-Cola Beverages Pvt Ltd, to its existing bottlers.
With this move, the North, North-East, and West Bengal territories will henceforth be entirely managed by independent bottlers on behalf of the company. Coca-Cola presently maintains partnerships with 11 bottlers in India. A similar refranchising initiative was previously undertaken by the company in 2019 in the Northern region.
The Rajasthan market will be owned and operated by Kandhari Global Beverages, which includes Enrich Agro Food Products Pvt. Ltd. and Kandhari Beverages Pvt. Ltd. They are currently operating in parts of Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh.
Meanwhile, SLMG Beverages Pvt. Ltd. will take ownership and operation of the Bihar market. They are currently engaged in operations in Uttarakhand, along with certain areas of Uttar Pradesh, Madhya Pradesh, and Bihar.
The North-East market, along with select areas of West Bengal, will be owned and operated by Moon Beverages Pvt. Ltd. Currently, they are operating in parts of Delhi and Uttar Pradesh.
Juan Pablo Rodriguez, CEO, HCCB India, said, “This business transfer marks a significant decision for Hindustan Coca-Cola Beverages. It ensures the right level of investments can be undertaken in all parts of the business, while bringing both scale and contiguity to the business. We are in the long-term growth prospects of our beverages business in India and believe this move will help accelerate the Coca‑Cola system, enabling us to win in the market and provide greater value to local communities.”
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HCCB presently manages 16 factories across India. In recent announcements, the company has revealed intentions to establish new plants in states like Gujarat, Telangana, and Maharashtra.
Sundeep Bajoria, Vice President, India Operations, Coca Cola India, said, “We are committed to building stronger and more sustainable local businesses in India As we set ourselves for further growth in the Indian market, these transfers will direct investments into innovation, infrastructure, technical capabilities, talent acquisition and business expansion while strengthening existing capabilities to deliver unparalleled beverage experiences to our consumers.”
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