Coca-Cola evaluating acquisition opportunities in India, says CFO

Coca-Cola is evaluating acquisition opportunities in India as it expects the country to become its third-largest market by volume in the coming years

Atlanta-based beverage major Coca Cola Company is on the hunt for acquisitions in India, which is expected to become its third-largest market in the coming years.

 

“Local brands are one way to meet a consumer need, and in India, some of the brands competing with us are pretty formidable. We have a couple of projects underway. Bolt-ons can fill a need in the portfolio that we don’t have while complementing what we have,” John Murphy, president and chief financial officer (CFO) at the company, said during a select media roundtable on Friday.

 

“When we look at business, we see how scalable they are and given the size of India, scale is not a problem. It’s whether the brand itself has the wherewithal to be attractive to the consumer base,” he further said, while adding that there is no shortage of opportunities to look at in the Indian market.

 

On competition, Murphy also highlighted that the growing competition in the Indian beverage sector reflects the attractiveness of the industry.

 

“It’s no surprise at all that intensity continues to grow as the industry continues to grow, and the opportunities become even more readily apparent. The consumer base in India is just massive and it is not fully tapped into yet,” he said.

 

India is the cola maker’s fifth largest market by volume, currently, behind the USA, Mexico, China, and Brazil.

 

“India is moving in the right direction. 2025 was a challenging year for many reasons and I expect India’s momentum to continue to be very robust. It has all the underlying fundamentals to believe that it will top three in the coming years,” Murphy said, adding that India is one of the most important markets for the company globally.

 

The company, which is working to refranchise bottling operations across the globe, is also aiming to completely exit manufacturing in the country, but does not have a date on it.

 

“The most important decision we make is who to partner with, and we do it in a very deliberate, thoughtful fashion,” Murphy said.

 

In December 2024, the company sold 40 per cent stake in its local bottling unit Hindustan Coca-Cola Beverages (HCCB) to the Jubilant Bhartia Group.

 

A source had earlier told Business Standard that the company could look at listing its bottling unit HCCB.

 

“Overall, we have a very positive outlook for the Indian market. It is very vibrant and energetic. We are investing for long-term participation in the market,” he added.

 

Murphy pointed out that the government, in the last 10-15 years, has taken several measures to stimulate consumption by investing in infrastructure, electrification measures, and in digitising the economy. 

 

Speaking about the evolving consumption trends in the country, Murphy pointed to the growing presence of the low and zero calories options in the market, making it an ‘opportunity to innovate’.

 

The beverage major is focused on innovation across categories, which include low and no-sugar options such as Thums Up XForce, Sprite Zero, Diet Coke, Coke Zero, and the newly launched Schweppes Zero Tonic & Sparkling Water range, and will launch Powerade in February. 

 

It also has three billion dollar brands in the country, which include Thums Up, Sprite, and Maaza.

 

Speaking about the quick-commerce opportunity, he said that while it is a relatively modest percentage of the overall business, over time, “digitisation of the economy is going to be, I think, a pretty significant tailwind,” he said.