CCI Approves Kandhari Global’s ₹2,000 Crore Coca-Cola Bottling Plant Deal

23 Apr 2025 , 12:57 PM

On April 22, the Competition Commission of India (CCI) cleared Kandhari Global Beverages Pvt Ltd’s offer to buy Coca-Cola’s bottling business in north Gujarat and Diu for around ₹2,000 crore. Kandhari Global Beverages, a licensed bottler for The Coca-Cola Company (TCCC) and Schweppes Holdings, currently manages the supply and distribution of non-alcoholic drinks (NABs) in Rajasthan.

The purchase includes acquiring the business of Hindustan Coca-Cola Beverages Pvt Ltd’s (HCCBPL) with respect to manufacturing, packing, and distribution of NAB products in the regions mentioned.

This action is a component of Coca-Cola’s asset-light global strategy whereby the company is increasingly franchising out its local operations to partners in the region in order to enhance efficiency and concentrate on brand-building.

Kandhari Global’s MD, Varinder Pal Singh Kandhari, confirmed the company’s commitment to investing significantly over the next 10 years to strengthen its capabilities in supply chain, sales execution, digital transformation, and sustainability.

The Kandhari family has been in the soft drink business since 1967 and has been affiliated with Coca-Cola since 1993. The company has eight plants with a production capacity of 12,000 bottles per minute.

After the deal, Coca-Cola’s Indian bottling unit, HCCBL, will continue to run 15 plants nationwide, manufacturing brands such as Coca-Cola, Thums Up, Sprite, Maaza, Fanta, and SmartWater.

Coca-Cola has already offloaded a 40% stake in HCCBL to the Bhartia family for about ₹10,000 crore during the December quarter of 2024, showcasing its ongoing move towards a franchising model.

During Q1 of last year, the giant beverage company franchised bottling businesses in Rajasthan, Bihar, the North-East, and certain areas of West Bengal, receiving approximately ₹2,420 crore ($290 million).

Kandhari Global was among three principal bottling partners—along with SLMG Beverages and Moon Beverages—to purchase Indian regional bottling businesses from Coca-Cola.

The company already has operations in several states such as Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh. India is still Coca-Cola’s fifth-largest market worldwide. During FY24, HCCBL posted revenue of ₹14,021.54 crore and net profit of ₹2,808.31 crore, underpinned by strategic divestments.