Hindustan Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola in India, has initiated a round of job cuts affecting roughly 300 employees as part
of a broader effort to improve margins and simplify its organisational structure. The decision, which was communicated internally earlier this month, comes as the company adjusts its strategy under newly appointed leadership, according to a report from The Economic Times citing people familiar with the matter. HCCB employs close to 5,000 people across 15 manufacturing facilities nationwide, where it bottles and distributes a wide portfolio of beverages, including Coca-Cola, Thums Up, Sprite, Minute Maid juices and Kinley water. The latest move impacts an estimated 4–6 per cent of the workforce and spans several departments, including sales, supply chain, distribution and bottling operations at the plant level. “Staying in sync with evolving business needs requires us to re-evaluate capabilities, structures, and take corrective actions where necessary,” a company spokesperson said in the ET report. Stressing that the exercise will not affect business continuity, the spokesperson described the layoffs as “minor in scale and non-disruptive to operations,” adding, “We periodically assess business operations to stay competitive, efficient and agile.” Leadership Transition And Financial Pressure The restructuring follows a leadership change announced in July, when HCCB named Hemant Rupani, previously associated with Mondelez International, as its new chief executive officer. He took over from Juan Pablo Rodriguez at a time when the company was navigating a challenging financial and operating environment. HCCB’s latest financial results underline the pressure to streamline costs. The company reported a sharp 73 per cent fall in net profit to Rs 756.64 crore in FY25, while revenue from operations declined 9 per cent to Rs 12,751.29 crore, based on regulatory filings accessed via business intelligence platform Tofler. The company attributed the downturn partly to an unusually high base in FY24. Softer Market Demand Over the past year, HCCB has also exited bottling operations in several regions, including Rajasthan, Bihar, the north-east, and parts of West Bengal. These territories were transferred to existing franchise partners such as Moon Beverages, Kandhari Global Beverages and SLMG Beverages, in line with Coca-Cola’s asset-light bottling model, where the parent sells concentrate while partners handle production and distribution. In addition to structural changes, demand conditions have been less supportive. Unseasonal and heavy rainfall during the peak summer months from March to September dampened consumption across the soft drinks category. This period, particularly the April–June quarter, is typically the most critical for India’s nearly Rs 60,000-crore carbonated beverages market, states the report.
