Bottles of Coca-Cola are displayed in grocery stores.
Jubilant Bhartia Group, controlled by billionaire brothers Shyam and Hari Bhartia, has agreed to buy a 40% stake in Coca-Cola India bottler, marking the company’s expansion into the beverage industry.
Coca-Cola USA announced on Wednesday that Jubilant Bhartia will acquire a stake in Hindustan Coca-Cola Holdings, the parent company of Hindustan Coca-Cola Beverages (HCCB), India’s largest Coca-Cola bottler.
“The Coca-Cola Company owns some of the most respected global brands and we are excited to partner with them,” Jubilant co-founders Shyam and Hari Bhartia said in a statement. “Together we will capitalize on the opportunity to grow the business to greater heights. , and ensuring that more Indian consumers can enjoy The Coca-Cola Company’s refreshing portfolio of iconic local and international brands.”
Financial details of the proposed deal have not been disclosed, pending regulatory approval, but local media reported the deal was worth 125 billion rupees ($1.5 billion).
HCCB has been expanding its production capacity to meet strong industrial demand. The company invested US$251 million to build a new factory on 20 hectares of land in the southern Indian state of Telangana, giving it 13 production facilities across the country and producing 37 types of beverages, including Coca-Cola, Sprite and Minute Maid. Popular brands.
Varun Beverages, founded by Indian billionaire Ravi Jaipuria, known as India’s cola king, is also bullish on the industry. The company said last month it had acquired the PepsiCo bottling operations in Ghana and Tanzania for $169.6 million to expand its presence in Africa.
With an estimated net worth of $4.5 billion, Shyam and Hari Bhartia are among the richest people in India. Their investment vehicle, Jubilant, is involved in fast food, pharmaceuticals, energy and automotive distribution. Its subsidiary Jubilant FoodWorks operates Domino’s Pizza, Dunkin’ Donuts and Popeyes franchises in India, as well as Chinese restaurants under the Hong’s Kitchen brand.
