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India is the fifth-largest market globally for The Coca-Cola Company.
The investment by the Jubilant Bhartia Group will help strengthen its position in the Indian market, Coca-Cola said in a statement.
This move is part of the US-based soft drink maker’s global strategy of being asset-light, as it seeks to reduce its stakes in bottling operations worldwide.
“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,” Sanket Ray, President of Coca-Cola India, said in a statement.
While the company did not disclose the quantum of the deal, reports suggest Jubilant is acquiring the stake for ₹12,500 crore.
“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,” Shyam S. Bhartia, Founder and Chairman, and Hari S. Bhartia, Founder and Co-Chairman of the Jubilant Bhartia Group, said in a statement.
Coca-Cola added that, as the company looks to drive sustainable, long-term growth by investing in opportunities in India, its locally owned franchise partners are well-positioned to deliver successful outcomes.
“This strategic investment represents an important milestone in our journey. Jubilant Bhartia Group’s expertise complements our strengths, ensuring that we continue delivering exceptional value to our stakeholders while driving innovation and sustainable progress,” Juan Pablo Rodriguez, CEO of Hindustan Coca-Cola Beverages, added.
Jubilant Bhartia Group is a diversified conglomerate with a presence in sectors including pharmaceuticals, contract research and development services, proprietary novel drugs, life science ingredients, agri-products, performance polymers, food service (QSR), food, auto, consulting in aerospace, and oilfield services, among others.
