CCI Approves Kandhari Global Beverages' Proposal to Acquire Coca-Cola's Bottling Plant
Fair trade regulator CCI has approved Kandhari Global Beverages' proposal to acquire beverage major Coca-Cola's bottling plant for Rs 2,000 crore. Kandhari Global Beverages is an authorised bottler of the Coca-Cola Company (TCCC) and Schweppes Holdings, and is engaged in the business of supplying and distributing non-alcoholic beverage (NAB) products in Rajasthan.
"CCI approves the proposed acquisition of the target business by Kandhari Global Beverages Pvt Ltd," the Competition Commission of India (CCI) says.
The targeted enterprise includes Hindustan Coca-Cola Beverages Pvt Ltd's (HCCBPL) operations of manufacturing, packaging, supplying, and distributing NAB products in North Gujarat and the Union Territory of Diu.
Last month, Coca-Cola announced that it is selling its bottling facility in the northern Gujarat area to Kandhari Global Beverages.
Although the company hasn't disclosed financial specifics, market experts estimate the deal to be approximately Rs 2,000 crore, involving Coca-Cola shifting business from HCCBL, its Indian bottling division, to its bottling associate Kandhari Global Beverages.
The beverage giant based in Atlanta is selling off assets worldwide by granting franchises of regional operations to local partners, in line with its asset-light business strategy.
Kandhari Global Beverages Managing Director Varinder Pal Singh Kandhari informed PTI that the firm is prepared for additional bottling prospects from Coca-Cola in India and international markets.
The Kandhari family-operated enterprise ventured into the beverage industry in 1967, and with eight bottling sites, it boasts a production capacity of 12,000 BPM (bottles per minute).
It has been linked to Coca-Cola since 1993 when the Atlanta-based company returned to India.
Regarding its growth in Gujarat, Kandhari noted that the Indian beverages sector is highly dynamic and offers thrilling prospects.
"As part of the transaction, we are committed to making substantial investments in the business over the next decade, not only supply chain RTM (route to market) and sales execution but also in people, digitalisation and sustainability," Varinder adds.
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After the CCI's approval, HCCBL will be left with 15 operational plants in India, where it produces beverages like Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, SmartWater, Kinley, Limca, and Fanta, among others.