The Coca-Cola Company, one of the world's leading beverage companies, today announced that it has secured US$ 293 million (approximately Rs. 2.42 billion) for its franchise operations in India earlier this year. The company, which sells popular sparkling drinks such as Coca-Cola, Fanta and Sprite, has refranchised some of its territory in the country to third-party bottlers.
“During the three months ended March 29, 2024, the Company acquired $599 million (U.S.) and $293 million (U.S.) We recorded a net profit of $1 million.“ The company said in a post-earnings statement. The Atlanta-based beverage giant has been working on restructuring its franchise in India for quite some time. The company bottles its beverages in India through its own bottling unit Hindustan Coca-Cola Beverages (HCCB) and third-party bottlers. Over the past few years, Coca-Cola has refranchised some of HCCB's territory.
In its last refranchising round in January, the company sold its bottling operations in Rajasthan, Bihar, the Northeast and parts of West Bengal to its existing independent bottling partners. As a result, West Bengal and regions of northern and northeastern India are now supplied by Moon Beverages, an independent bottling partner.
Meanwhile, the Rajasthan area is currently operated by Kandhari Global Beverages with operations in Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu and Kashmir and some markets in Ladakh. also supplies food. Meanwhile, SLMG Beverages is Coke's bottling partner in Bihar. The company also has operations in Madhya Pradesh, Uttarakhand, and parts of Uttar Pradesh.
The Coca-Cola Company reported „growth“ in unit case volume in the Indian market, currently the beverage giant's fifth-largest market, for the January-March quarter. However, in the Asia-Pacific market zone, which includes the Indian market, unit case volume decreased by 2% in the first quarter due to declines in categories such as packaged water, sports drinks, coffee and tea products. „Growth in the Philippines, India, Vietnam and Indonesia was more than offset by declines in China,“ Coca-Cola executives said in a statement.