Kandhari Global is open to buying out more bottling plants from HCCB

The company is currently in the process of acquiring HCCB's plant in Northern Gujarat, (Sanand) which is reportedly being bought out for around Rs 2,000 crore

Kandhari Global Beverages (KGB) is open to acquiring more bottling plants from Hindustan Coca-Cola Beverages (HCCB). The company is an exclusive franchisee partner for Coca-Cola in six states and three Union Territories in the country.

 

“We would love to make any acquisition to do business with Coca-Cola. It is the best thing that has happened to us. This is the fourth leg of their enfranchising, and we feel humbled that in every stretch of their refranchising, they have considered us to be their long-term partners,” KGB Managing Director (MD) Varinder Pal Singh Kandhari told Business Standard in an interview.

 

He added that the company is also looking to go global. He, however, did not divulge any specific details on KGB’s global expansion plans.

 

The company is currently in the process of acquiring HCCB’s plant in northern Gujarat (Sanand), which is reportedly being bought for around Rs 2,000 crore. Singh, without mentioning the deal size, said that this is the largest deal by any independent bottler in the country so far.

 

Talking about funding this acquisition and further acquisitions and expansion, he said it will be a mix of debt and equity. “It depends on the size of the responsibility we are taking on. Banks have been very forthcoming and always stood by us in every addition we have done and every expansion we've made over the last 33 years,” Singh said.

 

Apart from Delhi-NCR, Punjab, J&K, Rajasthan, Haryana, Chandigarh, and Himachal Pradesh, KGB is all set to enter north Gujarat and Diu with this refranchising.

 

Coca-Cola’s plan to sell is part of its global plan to go asset light. In December, HCCB announced that it was selling a 40 per cent stake to Jubilant Bhartia Group.

 

Singh said that KGB is close to opening its biggest bottling plant in J&K, and that the plant is expected to be operational from next month itself.

 

Talking about demand, he said the company is a market leader in the states it is operating in currently. KGB only entered the Rajasthan market last year and Singh is hopeful of becoming a leader in the state in the next few years.

 

The company expects its top line to grow in double-digits in the current financial year (FY25). “As of now, we can say, we are the largest growing bottlers in the country, and we will even sustain this in the coming times. We look forward to decent weather,” Singh added.