The Coca-Cola Company, one of world’s leading beverages maker, today said that it has gained US$ 293 million (Nearly Rs 2,420 crore) from the refranchising exercise that it undertook in India earlier in the year. The company that sells some of the popular fuzzy drinks like Coca-Cola, Fanta and Sprite, refranchised some of its territories in the country to third party bottlers.
“During the three months ended March 29, 2024, the company recorded net gains of [US] $599 million and [US] $293 million related to the refranchising of our bottling operations in the Philippines and in certain territories in India, respectively,” the company said in its post-earnings statement. The Atlanta, US headquartered beverages giant has bene undertaking refranchising exercise in India for quite some time. The company bottles its drinks in India through its in-house bottling arm Hindustan Coca-Cola Beverages (HCCB) and third party bottlers. Over the past few years, Coca-Cola has been refranchising some of the territories of HCCB.
During the last round of refranchising in January, it divested bottling operations in Rajasthan, Bihar, North-East and parts of West Bengal to its existing independent bottling partners. As a result, territories in West Bengal and North and North-East India is now being supplied by independent bottling partner Moon Beverages.
While, the areas in Rajasthan is now operated by Kandhari Global Beverages, which also feeds the markets in parts of Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, Ladakh. Meanwhile, SLMG Beverages is the bottling partner for Coke in Bihar. The company also operates in Madhya Pradesh, Uttarakhand and parts of Uttar Pradesh.
During January-March quarter, The Coca-Cola Company reported “growth” in unit case volume in the India market that is currently the fifth largest market for the beverages giant. In Asia Pacific market zone, though, which includes the India market, unit case volume declined by 2 per cent in the first quarter on account of decline in categories like packaged water, sports drinks, coffee and tea products. “Growth in the Philippines, India, Vietnam and Indonesia was more than offset by a decline in China,” Coca-Cola management said in a statement.
