Global soft drinks major the Coca-Cola Company has earned USD 290 million (around Rs 2,420 crore) from India in the March quarter by refranchising its bottling operations to its existing bottlers in three key markets here.
HCCB, Coca-Cola’s bottling arm in India, had in January this year announced to divest company-owned bottling operations in Rajasthan, Bihar, Northeast, and parts of West Bengal to its existing bottlers.
“During the three months ended March 29, 2024, the company recorded net gains of USD 599 million and USD 293 million related to the refranchising of our bottling operations in the Philippines and in certain territories in India, respectively,” said Coca-Cola in its earning statement.
The Atlanta, US headquartered beverages giant has bene undertaking refranchising exercise in India for quite some time. The company bottles its drinks in India through its in-house bottling arm Hindustan Coca-Cola Beverages (HCCB) and third party bottlers. Over the past few years, Coca-Cola has been refranchising some of the territories of HCCB.
During the last round of refranchising in January, it divested bottling operations in Rajasthan, Bihar, North-East and parts of West Bengal to its existing independent bottling partners. As a result, territories in West Bengal and North and North-East India is now being supplied by independent bottling partner Moon Beverages.
While, the areas in Rajasthan is now operated by Kandhari Global Beverages, which also feeds the markets in parts of Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, Ladakh. Meanwhile, SLMG Beverages is the bottling partner for Coke in Bihar. The company also operates in Madhya Pradesh, Uttarakhand and parts of Uttar Pradesh.
During January-March quarter, The Coca-Cola Company reported “growth” in unit case volume in the India market that is currently the fifth largest market for the beverages giant. In Asia Pacific market zone, though, which includes the India market, unit case volume declined by 2 per cent in the first quarter on account of decline in categories like packaged water, sports drinks, coffee and tea products. “Growth in the Philippines, India, Vietnam and Indonesia was more than offset by a decline in China,” Coca-Cola management said in a statement.
