Hindustan Coca-Cola Beverages Ltd (HCCB), the bottling arm of Coca-Cola in India has sold its North Gujarat bottling operations to Kandhari Global Beverages Private Limited, for approximately ₹2000 crore.

In an official statement, the company noted, “We have agreed to transfer the North Gujarat bottling operations currently being operated by Hindustan Coca-Cola Beverages Pvt. Ltd (HCCB).” The statement further mentioned that the North Gujarat business will be owned and operated by Kandhari Global Beverages Private Limited, subject to regulatory approvals.

“This transfer will ensure that the right level of investments can be undertaken in all parts of the business while bringing both scale and contiguity to the business,” HCCB added.

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Previous divestments

As part of its asset-light strategy, HCCB has previously divested company-owned bottling operations to independent bottlers in Rajasthan, Bihar, parts of West Bengal, and the Northeast during FY24.

In a regulatory filing, HCCB stated that it “synergised, restructured, and consolidated” its business operations in the eastern and central states of India by selling parts of its bottling business in Rajasthan, West Bengal, Bihar, and the Northeast on a slump-sale basis. Additionally, the company invested ₹1,963 crore in FY24 to expand its manufacturing capacity across India.

HCCB reported an increase in its net profit for FY24, up to Rs ₹2,808.3 crore from ₹812.5 crore in FY23, according to data from market intelligence platform Tofler. The consolidated revenue from operations stood at ₹1,4021.54 crore up 10.10 per cent in FY24.