Companies

Coca-Cola divests HCCB’s bottling operations to franchisees in North India

Our Bureau New Delhi | Updated on December 04, 2019 Published on December 04, 2019

Beverage major Coca-Cola on Wednesday said that it is divesting bottling operations of Hindustan Coca-Cola Beverages Pvt Ltd (HCCB) in four territories in North India.

The divestment will happen in favour of its existing franchise bottling partners. HCCB is the company-owned bottling arm of Coca-Cola in India.

The company said the process will involve HCCB transferring its business operations in four territories in North India to the franchise bottling partners.

“The change involves four non-contiguous territories in which HCCB currently operates and is designed to build regional scale, stimulate investments and growth in the northern part of the country,” the company said in a statement.

Existing partners

Sources said the business operations of HCCB will be transferred to the existing franchise bottling partners, which includes Moon Beverages, Enrich Agro Pvt. Ltd, Kandhari Beverages, besides entities controlled by the Ladhani brothers.

The beverage major emphasised that its company-owned bottling arm, HCCB, will continue to operate in eastern, western and southern regions of the country.

“The company’s bottling network in India comprises 14 bottlers, including HCCB, and no further immediate realignment is envisaged currently,” Coca-Cola said.

HCCB had posted a net profit of ₹ 321 crore in FY 2018-19.Net revenue grew by 10 per cent to ₹9,427 crore in FY19 from ₹ 8,564 crore in FY18.

Earlier this year, beverage major PepsiCo India had decided to divest its company-owned bottling operations in the southern and western regions to Varun Beverages Ltd.

Published on December 04, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.