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The Bhartia family, promoters of Jubilant Bhartia Group, have bought 40% stake in Hindustan Coca-Cola Beverages (HSBC), a bottler manufacturing company for Coca-Cola India. This is the biggest acquisition of the Bhartia family so far. The company has not disclosed the amount of the deal from its side, but according to media reports, this deal is worth Rs 10,000 crore.
Sanket Ray, President, Coca-Cola India, said that Jubilant brings with it decades of rich experience in various sectors. This will help speed up Coca-Cola’s systems.
The deal will be funded through equity and debt
According to reports, this deal will be funded through equity and debt (loan). The Bhartia family, led by Shyam and Hari Bhartia of Jubilant Group, is contributing Rs 5,000 crore. While the remaining amount will be given by Goldman Sachs. Goldman Sachs is providing funds for this deal under Special Purchase Vehicle (SPV).
India is Coca Cola’s fifth largest market globally
India is Coca-Cola’s fifth largest market globally. The company is selling bottling operations globally as part of its asset-light strategy. In India, the company had franchised its bottling operations to its existing bottlers in three major markets – Rajasthan, Bihar, North-East and parts of West Bengal.
Coca-Cola operates in the Indian market with two entities – Coca-Cola India and Hindustan Coca-Cola Beverages Pvt. Ltd., which is the bottling arm of the company.
Coca-Cola India, which looks after branding and other businesses, recorded a consolidated revenue of Rs 4,713.38 crore in FY 2024. During this period, its profit declined by 41.82% to Rs 420.29 crore.
Whereas in FY 2024, HCCBL generated revenue of Rs 14,021.54 crore. This was 10.10% more than in FY 2023. The company’s net profit increased three times to Rs 2,808.31 crore.
HCCBL manufactures and sells 60 products in 7 different categories. Its products include products like Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, Smartwater, Kinley, Limca, Fanta.
How did Coca-Cola get its name?
Frank Mason Robinson, Pemberton’s bookkeeper, named it Coca-Cola. That’s because coca leaves and kola seeds were used in making it. Jacob’s Pharmacy began selling this drink for 5 cents a glass. The first Coca-Cola advertisement appeared in the Atlanta Constitution newspaper on May 29, 1886. Gradually, due to its different taste, it started becoming popular among the people of Atlanta.
‘The Coca Cola Company’ formed in 1892
In the first year, only 9 glasses of Coca-Cola were sold daily, resulting in a loss of about $26. In 1887, before sales could become profitable, Pemberton became ill. Pharmacist Asa Griggs Candler bought most of Coca-Cola’s shares. Pemberton died on 16 August 1888. On January 29, 1892, Coca-Cola became a company with one product, whose name was – The Coca Cola Company.
On September 5, 1919, Ernest Budruff and some investors together bought the Coca-Cola Company for $25 million. After this it was listed in the New York stock market.
Coca-Cola bottle became a trademark
As Coca-Cola’s sales increased, Mississippi wholesaler Joseph Biedenhorn started selling it in bottles. By 1915, bottled Coca-Cola was available in hundreds of places. Many companies also tried to imitate Coca Cola.
To avoid imitators, the company decided to create such a design of Coca-Cola bottle, which would be different from others and could be recognized even in the dark. After all, the design of the bottle that was decided at that time continues till today. The Coca-Cola bottle was recognized as a trademark on April 12, 1961.
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