HCCB IPO: Coca-Cola has roped in investment bankers Kotak, HDFC Group and Citibank for the proposed initial public offering (IPO) of its Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB), with
a target fundraise of about $1 billion (around Rs 9,027 crore), the Economic Times reported.
According to an executive quoted in the report, Coca-Cola is aiming to list HCCB at a valuation close to $10 billion this year. The IPO may be pushed to 2027 only if peak summer demand is sharply affected by rains, similar to last year.
The planned offering follows recent large listings by multinational consumer companies such as Hyundai Motor India and LG Electronics. Hyundai raised a record $3.3 billion, while LG raised $1.3 billion through their Indian IPOs during 2024 and 2025.
Coca-Cola, which dominates India’s Rs 60,000-crore soft drinks market, manufactures and distributes brands including Coca-Cola, Thums Up, Sprite, Maaza, Kinley, Dasani, Georgia Coffee and Schweppes in the country.
The IPO process began over a year ago when Coca-Cola sold a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd — the parent of HCCB — to Jubilant Bhartia Group for Rs 12,500 crore. The transaction aligned with Coca-Cola’s global asset-light strategy, which focuses on brand building, innovation, strategy and digitisation rather than owning capital-intensive bottling operations.
Jubilant FoodWorks, part of the Jubilant Bhartia Group, holds exclusive franchise rights for Domino’s Pizza, Popeyes and Dunkin’ Donuts in India. The partnership with HCCB is expected to unlock long-term synergies between beverage and quick-service restaurant businesses.
Consolidation in the industry
An HCCB spokesperson told ET that the company remained focused on operational excellence under a realigned leadership team, without commenting directly on the IPO. In July last year, HCCB appointed Hemant Rupani, former president for Southeast Asia at Mondelez, as chief executive, replacing Juan Pablo Rodriguez.
The spokesperson added that HCCB has passed on GST-led pricing benefits to offer better value to consumers, and termed other reports as speculative.
Coca-Cola supplies concentrate to its bottling partners. In India, it operates 15 plants through HCCB and multiple independent bottlers, with operations almost evenly split between the two.
HCCB posted revenue of Rs 12,751.29 crore in FY25, down 9% year-on-year, according to Registrar of Companies filings sourced from Tofler. The decline was attributed to the sale of manufacturing plants to independent franchise bottlers across Rajasthan, Bihar, the North East and parts of West Bengal. These assets were sold to Moon Beverages, Kandhari Global Beverages and SLMG Beverages.
For the nine-month period ended September 2025, Coca-Cola reported $7 million in transaction costs and a net gain of $102 million from refranchising certain Indian bottling operations. Beverage sales were hit across the industry due to muted demand caused by unseasonal and persistent rains during the peak summer months of April to September, which normally account for about half of annual soft-drink consumption.
Analysts expect a strong rebound in the food, beverage and restaurant sector, driven by consolidation and a revival in consumer demand after five quarters of sluggish growth, along with the rapid expansion of smaller artisanal and local chains.
On January 1, Devyani International and Sapphire Foods announced a merger that will bring KFC and Pizza Hut under Devyani International, creating a network of over 3,000 stores. Devyani International is part of RJ Corp, one of PepsiCo’s largest franchise bottlers.
JP Morgan analysts said the merger would result in a simpler structure, meaningful cost savings and faster decision-making.
