Indian Billionaire Brothers To Buy 40% Stake In Coca-Cola’s Indian Bottler

Jubilant Bhartia Group—controlled by billionaire brothers Shyam and Hari Bhartia—has agreed to buy a 40% stake in Coca-Cola’s Indian bottler, marking the company’s expansion into the beverage industry.

U.S.-based The Coca-Cola Company announced on Wednesday that Jubilant Bhartia will acquire the stake from Hindustan Coca‑Cola Holdings, the parent company of the largest Coca‑Cola bottler in India, Hindustan Coca‑Cola Beverages (HCCB).

“The Coca‑Cola Company is home to some of the most respected global brands and we are delighted to be associated with them,” Shyam and Hari Bhartia, cofounders of Jubilant, said in a statement. “Together, we will leverage opportunities to grow the business to greater heights and ensure more Indian consumers can enjoy The Coca‑Cola Company’s refreshing portfolio of iconic local and international brands.”

Financial details of the proposed deal, which is subject to regulatory approvals, weren’t disclosed but local media reports said the transaction is valued at 125 billion rupees ($1.5 billion).

HCCB has been expanding its capacity to tap on the robust industry demand. It invested $251 million to build a new factory across a 20-hectare property in the southern Indian state of Telangana, bringing to 13 its production facilities across the country and manufacturing 37 beverages, including popular brands such as Coca-Cola, Sprite and Minute Maid.

Varun Beverages—founded by Indian billionaire Ravi Jaipuria, who is known as India’s cola king —is also bullish on the industry. The company said last month that it was expanding in Africa with the acquisition of Pepsi bottling operations in Ghana and Tanzania for $169.6 million.

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With an estimated net worth of $4.5 billion Shyam and Hari Bhartia are among the wealthiest in India. Their investment vehicle, Jubilant, has interests in fast-food, pharmaceuticals, energy, and automotive distribution. Its subsidiary, Jubilant FoodWorks, operates the Domino's Pizza, Dunkin' Donuts, and Popeyes franchises in India, as well as Chinese restaurants under the Hong's Kitchen brand.