Coca-Cola Transfers North Gujarat Bottling Plant to Kandhari Global Beverages

Coca-Cola is selling its North Gujarat bottling plant to Kandhari Global Beverages as part of its strategy to franchise regional operations. This aligns with its asset-light model. Subject to regulatory approval, the plant's transfer will allow for better investment and continued growth within HCCBL's remaining operations.

Coca-Cola has reached an agreement to sell its North Gujarat bottling plant to Kandhari Global Beverages. This move is part of the beverage giant's strategy to franchise regional operations and adopt an asset-light model.

While financial details have not been disclosed, insiders estimate the deal to be around Rs 2,000 crore. Coca-Cola will transfer the business from its Indian bottling arm, HCCBL, to its partner, Kandhari Global Beverages, pending regulatory approval.

This transaction will enable more strategic investment across HCCBL's operations and ensure growth in line with market demands, continuing to leverage its remaining 15 operational plants in India, producing well-known beverages.

(With inputs from agencies.)