New Delhi: One of Coca-Cola's top bottling partners in India, Kandhari Global Beverages, has acquired Wave Beverages' bottling operations for the American soft-drinks maker for about ₹1,000 crore, people directly aware of the matter said.
Kandhari Global managing director Varinder Pal Singh Kandhari confirmed the transaction that will help his company take over Wave Beverages' bottling territories in parts of Punjab and Himachal Pradesh as it expands operations in the northern and western markets.
He declined to comment on the financial terms.
The deal comes five months after Kandhari Global bought Coca-Cola's North Gujarat bottling operations for ₹2,000 crore. That bottling business was acquired from Coca-Cola's own bottling company Hindustan Coca-Cola Beverages (HCCB). Wave Beverages is an independent bottler for Coca-Cola and was part of the Noida-based Wave Group. "The move consolidates Coca-Cola's independent bottling structure ... It also marks the near-exit of the diversified Wave Global from Coca-Cola's bottling business," one of the people said.
Coca-Cola sold a 40% stake in HCCB to the Jubilant Bhartia Group for ₹12,500 crore ($1.47 billion) under a deal announced in December last year. The Atlanta-based beverages maker has 15 manufacturing plants. The remaining bottling operations are split among 10 independent franchise partners such as Kandhari Global Beverages, Moon Beverages and SLMG Beverages. Coca-Cola sells concentrate to the bottlers who produce the beverages and distribute them.
Kandhari Global has existing bottling operations in Jammu & Kashmir, Haryana, most of Punjab, Himachal Pradesh, Rajasthan, North Gujarat and parts of Delhi.
"This (acquisition) makes us (one of) Coca-Cola's top-two independent bottling partners. In future, we may explore expanding our operations globally, which will depend on Coca-Cola's requirements," Kandhari told ET.
India is Coca-Cola's fifth largest market by volume sales, and the company leads the soft drink market, industry sources said citing data from market research firm NielsenIQ. The April-June quarter, the most crucial for soft-drink sales in India as it is the peak summer season, has been underwhelming this year for Coca-Cola and other beverage makers as temperatures remained relatively cooler due to unseasonal rains.
"This summer has been challenging on account of the rains. But there is enough bandwidth with pricing, packs and distribution strategies to continue with strong growth for the full year," Kandhari said.
A report from think tank ICRIER estimated India's beverages industry, including carbonated soft drinks, juices and water, to be ₹67,000 crore in sales in 2024. It projected the market to reach ₹1.47 lakh crore by 2030.
While the report's findings suggest the growth potential of the market, competition has also intensified with the entry of Reliance Consumer Products-owned Campa.
Kandhari Global managing director Varinder Pal Singh Kandhari confirmed the transaction that will help his company take over Wave Beverages' bottling territories in parts of Punjab and Himachal Pradesh as it expands operations in the northern and western markets.
He declined to comment on the financial terms.
The deal comes five months after Kandhari Global bought Coca-Cola's North Gujarat bottling operations for ₹2,000 crore. That bottling business was acquired from Coca-Cola's own bottling company Hindustan Coca-Cola Beverages (HCCB). Wave Beverages is an independent bottler for Coca-Cola and was part of the Noida-based Wave Group. "The move consolidates Coca-Cola's independent bottling structure ... It also marks the near-exit of the diversified Wave Global from Coca-Cola's bottling business," one of the people said.
Coca-Cola sold a 40% stake in HCCB to the Jubilant Bhartia Group for ₹12,500 crore ($1.47 billion) under a deal announced in December last year. The Atlanta-based beverages maker has 15 manufacturing plants. The remaining bottling operations are split among 10 independent franchise partners such as Kandhari Global Beverages, Moon Beverages and SLMG Beverages. Coca-Cola sells concentrate to the bottlers who produce the beverages and distribute them.
Kandhari Global has existing bottling operations in Jammu & Kashmir, Haryana, most of Punjab, Himachal Pradesh, Rajasthan, North Gujarat and parts of Delhi.
"This (acquisition) makes us (one of) Coca-Cola's top-two independent bottling partners. In future, we may explore expanding our operations globally, which will depend on Coca-Cola's requirements," Kandhari told ET.
India is Coca-Cola's fifth largest market by volume sales, and the company leads the soft drink market, industry sources said citing data from market research firm NielsenIQ. The April-June quarter, the most crucial for soft-drink sales in India as it is the peak summer season, has been underwhelming this year for Coca-Cola and other beverage makers as temperatures remained relatively cooler due to unseasonal rains.
"This summer has been challenging on account of the rains. But there is enough bandwidth with pricing, packs and distribution strategies to continue with strong growth for the full year," Kandhari said.
A report from think tank ICRIER estimated India's beverages industry, including carbonated soft drinks, juices and water, to be ₹67,000 crore in sales in 2024. It projected the market to reach ₹1.47 lakh crore by 2030.
While the report's findings suggest the growth potential of the market, competition has also intensified with the entry of Reliance Consumer Products-owned Campa.
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