Domino’s Pizza owner in India, buys Rs 125000000000 stake in Coca-Cola, Bhartia family to invest….

Hindustan Coca-Cola Beverages CEO Juan Pablo Rodriguez said, "This strategic investment represents an important milestone in our journey.

The Jubilant Bhartia Group has acquired a 40% stake in Hindustan Coca-Cola Beverages (HCCB), Coca-Cola India’s wholly-owned bottling subsidiary. The deal is reportedly valued at Rs 12,500 crore, though no official confirmation of the amount has been made. This marks the largest acquisition by the Bhartia family, owners of Domino’s Pizza in India. Domino’s is the country’s largest food service brand.

The acquisition is being funded by Goldman Sachs, with the Bhartia family committing an investment of approximately Rs 5,000 crore. This deal represents a significant milestone for the Bhartia family, solidifying their position as key players in India’s beverage and food service sectors.

Hindustan Coca-Cola Beverages (HCCB) is a critical component of Coca-Cola India, managing the bottling and distribution of its products in the country. India is Coca-Cola’s fifth-largest market by volume and is considered a high-growth region due to the relatively low per capita consumption of packaged soft drinks.

The deal underscores Coca-Cola’s strategic focus on India as a key market for expansion. With substantial room for growth in the packaged beverage segment, this partnership is expected to enhance HCCB’s operational strength and market reach.

This acquisition aligns with Jubilant Bhartia Group’s ambitions to diversify and strengthen its portfolio across industries. The transaction is a testament to the group’s confidence in India’s beverage market and its long-term growth potential.

 Bhartia Family On Coca-Cola Deal

The Bhartia family-led group in a statement said “they have entered into a definitive agreement for a strategic investment whereby Jubilant Bhartia Group will be acquiring a 40 per cent equity interest in Hindustan Coca-Cola Holdings Pvt Ltd, India (HCCH) through its entity Jubilant Beverages Limited. HCCH is the parent company of HCCBL, the largest Coca-Cola bottler in India.”

The transaction is subject to regulatory approval.

Jubilant Beverages Ltd is a new entity incorporated this year in October by Jubilant Bhartia Group.

“This strategic investment will contribute to HCCB’s ongoing success and help strengthen its position in the Indian market,” the statement said.

Why Coca-Cola Sold Stake?

This deal is as part of The Coca-Cola Company’s strategy to divest its stake in bottling operations globally as per its asset-light strategy.

HCCBL operates 13 factories and manufactures and sells 37 different products across 8 categories.

“With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers,” Coca-Cola India President Sanket Ray said.

India is the fifth largest market for Coca-Cola globally.

Shyam S Bhartia, Founder and Chairman and Hari S Bhartia, Founder and Co-Chairman of Jubilant Bhartia Group, said the investment is an ideal addition to their business.

“Together, we will leverage opportunities to grow the business to greater heights and ensure more Indian consumers can enjoy The Coca-Cola Company’s refreshing portfolio of iconic local and international brands,” a joint statement quoted them as saying.

(With inputs from PTI)