Coke Shakes Up India: Local Bottlers Get Fizz of Refranchising

Coca-Cola has made the strategic decision to restructure its operations in India by refranchising company-owned bottling operations in three key territories. Hindustan Coca-Cola Beverages, the company's bottling arm, will divest its bottling operations in Rajasthan, Bihar, North-East, and parts of West Bengal to its existing bottlers.

The ownership and operation of the Rajasthan market will be transferred to Kandhari Global Beverages, which includes Enrich Agro Food Products and Kandhari Beverages. Kandhari Global Beverages currently operates in various regions, including parts of Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh. Similarly, the Bihar market will now be owned and operated by SLMG Beverages, while Moon Beverages, currently operating in parts of Delhi and Uttar Pradesh, will take over the North-East market and select areas of West Bengal.

As part of its broader business strategy, HCCB has announced plans to establish new plants in states such as Gujarat, Telangana, and Maharashtra, with a substantial investment of Rs 3,000 crore for a new plant in Rajkot, Gujarat. This initiative follows a similar refranchising exercise undertaken by the company in the Northern region in 2019, aimed at streamlining the supply chain in the region.

These operational changes are expected to enable the company to channel investments into areas like innovation, infrastructure, technical capabilities, and overall business expansion. By strengthening existing capabilities and optimizing its supply chain, Coca-Cola aims to deliver exceptional beverage experiences to its consumers. Currently, Coca-Cola boasts a network of 11 bottling partners in India.

News by Rahul Yelligetti