Coca-Cola to transfer in-house bottling arm in north India to franchisees

Global beverages major Coca-Cola on Wednesday announced realignment of its bottling business in India with its in-house bottling arm Hindustan Coca-Cola Beverages Pvt Ltd (HCCB) exiting from the north region.

As part of the realignment, HCCB is transferring operations in four territories in north India to existing bottling partners of the company, Coca-Cola said in a statement.

"The change involves four non-contiguous territories in which HCCB currently operates and is designed to build regional scale, stimulate investments and growth in the northern part of the country. HCCB will continue to operate in east, west and south of India," it added.

Explaining the rationale behind the change, the company said it is on course to build a stronger and more sustainable local business in India.

"This move will deliver sustainable growth and will create shared value for bottlers, customers, consumers and communities. This realignment optimises existing capacities, supply chain, brings further investments and improves distribution routes through contiguous territories," it said.

Currently, Coca-Cola's bottling network in India comprises 14 bottlers, including HCCB, and no further immediate realignment is envisaged currently, the company said.

It has over 55 bottling plants across the country.