IPO plans for Indian bottling arm’s on track: Coca-Cola

New Delhi: Beverage maker Coca-Cola reiterated plans to list its Indian bottling arm, Hindustan Coca-Cola Holdings (HCCH), in a global management commentary late Tuesday. "As previously announced, we are exploring a potential IPO of our bottling operations in India and will provide further updates as appropriate," president and chief financial officer John Murphy said.

Without specifying a timeline for the proposed listing or directly referring to the IPO, Murphy said: "Many factors could impact both our currency outlook and broader business outlook between now and when we expect to provide guidance in February." HCCH is expected to file its draft red herring prospectus for an IPO later this week, people aware of the matter said.

The beverage maker's listing is expected to be formalised in the second quarter of 2027. It is targeting a $1 billion IPO, primarily comprising an offer for sale by its existing shareholders, at a valuation of $10 billion.

Rival PepsiCo India's bottling partner in India, Varun Beverages, listed a decade back.

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Coca-Cola formally announced plans to list HCCH in June this year, less than a year after it sold a 40% stake in its bottling business to Jubilant Bhartia Group for nearly ₹12,500 crore. The listing plans follow Coca-Cola's global strategy to adopt an asset-light operating model and focus on strategy, brand building and digitisation.

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The beverage firm's bottling business in India is currently more or less evenly split between HCCB and multiple independent bottlers. HCCB operates through 14 bottling plants with a network of 2,000-plus distributors. It has retained Rothschild & Co to advise on the IPO.

Coca-Cola chief executive Henrique Braun told investors late Tuesday that the company's "operational highlights included growth in key markets like India, with a focus on affordability, zero-sugar products and local relevance." India delivered strong third-quarter volume growth, with top 10 brands growing in double digits, he said, adding that the firm was increasingly "leaning into emerging channels".

The unit case volume of the company's bottling investments division rose 8% globally from a year earlier, with India and South Africa being the core drivers.

It also noted growth in its quick service restaurants channel and social media content and influencer collaborations in India as contributors to the expansion. India, the Atlanta beverage maker's fifth-largest market, was a key contributor to growth in the third quarter, when global unit volume rose 5%, the company said.
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