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Hindustan Coca-Cola Beverages (HCCB), the bottling arm of beverage major Coca-Cola, on Monday said it is re-organising its operating structure, as it aims to touch the $2.5-billion mark in revenues by 2020.
The company said a leaner corporate office would mean that a few existing jobs would become redundant. At the same time, the company said that it expected to create several hundred new jobs.
As per this strategy, HCCB is setting up a new division that will focus on its niche and premium beverage products, such as smartwater, frozen fruit desserts, mixers and tonic water.
It is also merging the existing “Alternate Beverages Division” to the mainstream distribution system.
In a statement, the company said the re-organisation was being done as it would focus on manufacturing and selling a wider range of beverages and build an efficient and agile system in response to the changing consumer demands. The company’s revenues stood at ₹9,472 crore for the fiscal year ended March 2017.
HCCB also plans to increase distribution of its products to three million outlets from two million outlets.
In a statement, Christina Ruggiero, CEO, Hindustan Coca-Cola Beverages Pvt Ltd said: “ It was very clear from our research, conversations and market data that today, we are not structured in a way that allows us to fully leverage our scale and market capabilities. Changes of this nature take time to seep in, but our associates are committed to ensuring that HCCB is key fixture in India’s consumer landscape and delivering the growth that we know is possible in India.”
HCCB will now operate under seven zones instead of the current five zones.
“The company will have a leaner corporate office and a much strengthened sales and supply chain organisation, thereby creating several hundred new jobs. HCCB expects to fill most of these new jobs from within the organisation.
“The re-organisation will, however, make a few existing jobs redundant, the incumbents of which will be encouraged to apply for the new jobs that have been created,” it added in a statement.
HCCB, currently has over 8,000 employees.
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