Coca-Cola plans $1B IPO for Indian bottling arm this summer
What's the story
Coca-Cola is gearing up to launch an initial public offering (IPO) for its Indian bottling subsidiary, Hindustan Coca-Cola Beverages (HCCB). The company has enlisted investment bankers from Kotak, HDFC Group, and Citibank among others for the move, according to The Economic Times. The proposed IPO aims to raise around $1 billion (approximately ₹9,027 crore) and is scheduled for this summer.
Market conditions
IPO plans hinge on summer demand
The success of Coca-Cola's IPO plans for HCCB, which is valued at nearly $10 billion, depends on summer demand. An executive familiar with the matter told ET that "the listing will only be postponed to next year in case the peak summer demand is particularly impacted by rains, similar to last year."
Business strategy
Coca-Cola's strategic shift in India
Coca-Cola dominates India's ₹60,000-crore soft drinks market with brands like Coca-Cola, Thums Up, Sprite, Maaza juice, Kinley, and Dasani water. The company had earlier sold a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd (HCCB's parent entity) to Jubilant Bhartia Group for ₹12,500 crore. This move was part of Coca-Cola's global asset-light strategy focusing on innovation and brand building instead of direct ownership of capital-intensive bottling operations.
Management changes
HCCB's leadership and operational focus
In July last year, HCCB appointed Hemant Rupani as its new CEO. He replaced Juan Pablo Rodriguez. An HCCB spokesperson said the company is focused on driving operational excellence with a realigned leadership team in place. The spokesperson also said they have been passing on the benefits of new GST-led pricing to ensure better value and more affordable choices for consumers.
Revenue report
Financial performance and refranchising impact
HCCB reported a revenue of ₹12,751.29 crore for FY25, a 9% decline year-on-year (YoY). The company attributed the numbers to the sale of manufacturing plants to its existing independent franchise bottling partners across several territories. For its last reported nine-month period ending September 2025, Coca-Cola incurred $7 million in transaction costs and recorded a net gain of $102 million from refranchising certain bottling operations in India.