Home / Companies / News /  Coca-Cola realigns bottling operations in north India to optimize resources

NEW DELHI : Hindustan Coca-Cola Beverages Pvt. Ltd (HCCB), the bottling subsidiary of beverage company Coca-Cola, is divesting operations in north India to its existing bottlers to optimize resources and widen its distribution network, as it adds more products to its portfolio.

To be sure, Coca-Cola works with 14 bottlers in India, including HCCB. The move is aimed at creating a regional scale, stimulate investments and growth in the northern part of the country, as the company hopes to sell more beverages to consumers. HCCB will continue to operate in east, west and south India. No further realignment is envisaged, it added.

“Coca-Cola today announced the internal realignment of its bottling operations in North India, as HCCB—the company-owned bottler for the majority of India will transfer its business operations in four territories in North India to existing bottlers," it said in a press statement. “The change involves four non-contiguous territories in which HCCB currently operates in."

HCCB, however, declined to share the names of states it has divested its business in.

In north India, HCCB has bottling operations in states such as Rajasthan and Uttar Pradesh, while the bulk of its manufacturing plants in the north are owned by franchise bottlers, and co-packers of HCCB, according to information available on its website. For 2018-19, HCCB had reported net profit of 321.6 crore, while revenue stood at 9,427.45 crore, according to data sourced from business intelligence platform Tofler.

HCCB has 18 bottling plants in India, according to a report by The Economic Times. However, including its external bottling partners, Coca-Cola has over 55 manufacturing units in India.

Sources told Mint that HCCB's assets in Uttar Pradesh will be split among Moon Beverages, one of the company's key bottlers in India, along with the Ladhani brothers who too have acquired part of the bottling operations in the region. HCCB's J&K have gone to the company's bottler in Punjab.

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