Coca-Cola plans to divest bottling activities in India

Coca-Cola India has started exploring the process of divesting its asset-heavy bottling partner Hindustan Coca-Cola Beverages’ plants. The move is in line with the beverage maker’s global strategy to refranchise bottling across markets. 

The company began talks with existing independent franchise bottlers for the divestment.

A source told, "The objective is to move away from the capital intensive, low margin business of bottling over a period of time, (and) to accelerate focus on its concentrate business."

The company-owned HCCB has 18 plants, accounting for two-thirds of Coca-Cola India’s volumes. HCCB reported revenue of Rs 9,082 crore in FY18 and it is the US beverage major's largest plant in India.

Earlier, the company had announced that it aims to generate revenues of $2.5 billion by 2020, which would involve manufacturing and selling a wider range of beverages and modifying its operating structure.