Coca-Cola is reportedly planning an initial public offering (IPO) of its Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB), in the summer of 2026, seeking to raise approximately $1 billion. The valuation of HCCB is estimated to be around $10 billion. Investment bankers from Kotak, HDFC Group, and Citibank are reportedly engaged in the process.
HCCB is a key bottling partner for Coca-Cola in India, handling about 65% of its bottling operations. It manages manufacturing, packaging, sales, and distribution of Coca-Cola's beverage portfolio across India. HCCB serves over 2 million retail outlets and employs more than 5,200 people. The company operates 14 manufacturing plants across 12 states and 236 districts, primarily in southern and western India. HCCB manufactures popular aerated drinks like Coca-Cola, Thums Up, and Sprite, as well as fruit juices like Maaza and Minute Maid. In FY25, HCCB reported revenue of ₹12,751.29 crore, a 9% year-on-year decrease attributed to strategic plant sales to franchise partners.
The IPO aligns with Coca-Cola's global strategy of focusing on brand building, innovation, and digitization, rather than direct ownership of capital-intensive bottling operations. This "asset-light" approach involves transferring bottling operations to local partners. In line with this strategy, Coca-Cola sold a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd, the parent entity of HCCB, to Jubilant Bhartia Group for ₹12,500 crore. While Coca-Cola remains the majority stakeholder, it intends to further reduce its holding, potentially making the Bhartia family the controlling shareholder.
The listing plans are currently on track for 2026 but could be postponed if peak summer demand is significantly impacted by heavy rains, similar to the challenges faced in the previous year. The Indian primary market is anticipated to sustain its momentum into 2026, with other major offerings, such as Reliance Jio Infocomm, expected to bolster investor appetite. Recent significant market debuts by multinational consumer companies in India include Hyundai Motors India's $3.3 billion IPO and LG Electronics' $1.3 billion listing, both completed over 2024 and 2025.
India is a key growth market for Coca-Cola, driven by increasing beverage consumption and strong demand. HCCB, along with other bottlers, has committed ₹25,760 crore in investments to expand food processing infrastructure across 9 states, supporting long-term growth in capacity and supply chain efficiency. However, Coca-Cola faces increasing competition from domestic players like Ambani's Campa Cola.
