Moon Beverages takes over Jharkhand Coca-Cola operations from HCCB

Hindustan Coca-Cola Beverages transfers operations as part of asset-light strategy; Moon Beverages handles Coca-Cola operations in several key regions

Hindustan Coca-Cola Beverages (HCCB), a wholly-owned subsidiary of the Coca-Cola Company, has divested its bottling operations in Jharkhand to Moon Beverages Pvt Ltd, a key franchise partner, according to The Economic Times.

 

This move aligns with Coca-Cola’s global shift towards an asset-light operational model.

Strategic expansion for Moon Beverages

Moon Beverages, part of the Sanjeev Agrawal-led MMG Group, already oversees Coca-Cola’s bottling operations in Delhi, parts of Uttar Pradesh, the Northeast, and select regions of West Bengal. The MMG Group also operates McDonald’s outlets in northern and eastern India.

 

Commenting on the transfer, HCCB India CEO Juan Pablo Rodriguez stated that the move ensures strategic investments, operational continuity, and scalability across the business.

Recent divestments

Earlier this year, HCCB transferred company-owned bottling operations in northern, eastern, and northeastern territories to three franchise bottlers: Moon Beverages, SLMG Beverages, and Kandhari Global Beverages.

 

HCCB operates on a large scale, managing 13 factories, 2,300 distributors, and over 2.3 million retailers. The company produces beverages including Coca-Cola, Thums Up, Sprite, Limca, Minute Maid, Maaza, Kinley, Dasani, and Schweppes.

Bhartia family’s stake in HCCB

In a significant development, the Bhartia family, promoters of the Jubilant Bhartia Group, is set to acquire a 40 per cent stake in HCCB for Rs 12,500 crore, according to The Economic Times.

 

The deal will be financed through a mix of equity and debt, with the Bhartia family contributing Rs 5,000 crore and Goldman Sachs funding the remainder via a special purpose vehicle (SPV).

 

This acquisition positions the Bhartia family as a major player in India’s beverage industry. HCCB, which produces and distributes 37 products across eight categories including soft drinks, juices, and energy drinks, is a critical revenue driver for Coca-Cola India.

Market competition intensifies

The Indian beverage market is witnessing heightened competition. Reliance Consumer Products Ltd has recently revitalised the Campa brand, disrupting the market with competitive pricing and higher trade margins.

 

Meanwhile, HCCB is expanding its distribution network into Tier-II and Tier-III cities, enhancing its market presence amidst increasing consumer demand.