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Kandhari Global Beverages is ready for more bottling opportunities from Coca-Cola in India as well as foreign territories, its Managing Director Varinder Pal Singh Kandhari said on Wednesday. Besides, Kandhari Global Beverages, which has recently acquired Coca-Cola’s bottling operations in the North Gujarat region, plans to double its turnover in the next 5-6 years from the current Rs 4,500 crore.
The Atlanta-headquartered beverage major is divesting assets globally by franchising regional operations to local partners as part of its asset-light business model.
“We look forward if there is an opportunity, we will definitely look at it,” Kandhari told PTI.
Kandhari Global Beverages was one of the three existing bottlers to whom HCCB had transferred bottling operations of the Rajasthan market in the last round in January 2024. It already operates in parts of Delhi, Himachal Pradesh, Haryana, Punjab, Chandigarh, Jammu & Kashmir, and Ladakh.
“We have ambitions going beyond the boundaries of India and we trust Coca-Cola someday will give us an opportunity to do so,” he added.
The Kandhari family-owned business entered in beverage business in 1967 and with eight bottling locations, the company has a capacity of 12,000 BPM (bottles per minute).
It has been associated with Coca-Cola since 1993 when the Atlanta-headquartered firm re-entered India.
On its expansion in Gujarat, Kandhari said the Indian beverages segment is very dynamic and provides exciting opportunities.
“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,” he said.
Though Kandhari did not share the value of the deal, however, said it would be funded through a mix of debt and internal accruals.
The industry insiders have pegged the deal to be around Rs 2,000 crore.
“We are very optimistic about our growth story in the country and even beyond the boundaries and we have a very good relationship with the company and the company trusts us,” Kandhari said, adding, “They know we invest ahead of the curve. We are always there to take on the tough times and the good times together.”
When asked about the disruptions created by Reliance Industries Campa Cola in the beverage market through aggressive pricing and increased margins, Kandhari said it will help to grow the beverage market.
“We welcome all types of competition…because we are so confident about our product range, about our pricing…the placement and…the space we operate. So when the new competition comes in, it helps us expand the market,” he said.
Further, he said, “Ultimately the consumer is the king and they decide what they want to have. So we, as a beverage company, always make sure we provide all kinds of beverages at the right price in the right place wherever it is required. So any competition is healthy for us.”
The company is looking forward to this kind of competition and is confident about its product ranges.
Whether it will go in a price war with Campa, Kandhari said: “We will do things that are required to be done in the market in terms of giving the right price right back and will give promotions from time to time in different markets in different occasions, in different packs.”
On Tuesday, Coca-Cola announced that it will transfer North Gujarat business from HCCBL, its bottling arm in India, to its bottling partner Kandhari Global Beverages.
After this sale, 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.
In the December quarter, Coca-Cola divested a 40 per cent stake in HCCBL to the Bhartia family. Though the company has not disclosed the amount, some media reports have pegged it to be around Rs 10,000 crore.
Earlier, in the March quarter of last year, it had franchised its bottling operations to existing bottlers in three key markets – Rajasthan, Bihar, and Northeast and parts of West Bengal – to its existing bottlers, earning USD 290 million (around Rs 2,420 crore).
The two other existing partners were SLMG Beverages and Moon Beverages.
India is the fifth largest market of the Atlanta-based cola company.
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