The Bhartia household of Jubilant Bhartia Group is ready to amass a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the unique bottling arm of Coca-Cola India, for Rs 12,500 crore, The Economic Times reported.
The formal announcement is anticipated later immediately, stated folks conversant in the developments.
Goldman Sachs has agreed to solely finance the particular goal automobile (SPV) established for the acquisition of HCCB’s stake and will probably be partnering with the Bhartia household on the deal, the sources added.
This deal marks the most important acquisition to this point for the promoters of the pizza-to-pharma conglomerate. The Bhartia household, who maintain unique franchise rights for Domino’s Pizza via their group firm, Jubilant Foodworks Ltd (JFL), has opted to not over-leverage on this transaction. They are anticipated to contribute round Rs 5,000 crore of their very own funds.
India, Coca-Cola’s fifth-largest market by quantity, is seen as a vital progress space for the corporate, with its low per capita consumption of packaged mushy drinks providing important growth potential.
Coca-Cola’s Asset-Light Strategy
Coca-Cola India is following PepsiCo’s asset-light mannequin, aiming to create worth via the sale of its HCCB stake. This sale may pave the way in which for an IPO, serving to to ascertain HCCB’s valuation. PepsiCo had beforehand shifted its bottling operations to Varun Beverages, considerably boosting Varun’s market worth, in response to a report by The Economic Times.
HCCB Financial Performance
Hindustan Coca-Cola Beverages just lately reported a 9.2% enhance in income, totaling Rs 14,021 crore for FY24, together with a 247% year-on-year surge in internet revenue. The firm additionally plans to speculate $1.5 billion over the following 5 years to broaden its bottling capacities and develop new services in Gujarat and Madhya Pradesh.
