- Coca-Cola plans a 2027 IPO for Hindustan Coca-Cola Holdings to unlock value
- Jubilant Bhartia Group may gain operational control post-IPO of India's largest bottler
- IPO size could reach $900 million, including fresh issue and offer for sale
Coca-Cola's planned 2027 listing of Hindustan Coca-Cola Holdings (HCCH), the parent company of Hindustan Coca-Cola Beverages (HCCB), is expected to pave the way for a gradual transfer of operational control of India's largest Coca-Cola bottling business to the Jubilant Bhartia Group, according to sources familiar with the matter.
HCCB manufactures and distributes Coca-Cola's beverages across much of India and remains the company's largest bottling operation in the country. Sources said the IPO and subsequent stake dilution are intended not only to unlock value but also to facilitate a transition toward a partner-led bottling structure, with Bhartia expected to eventually assume operational control.
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Coca-Cola is targeting a 2027 initial public offering of HCCH, with the issue size potentially reaching about $900 million (around Rs 8,500 crore), sources said. The proposed listing is expected to comprise both a fresh issue and an offer for sale, while draft prospectus filings could be prepared within the next three months, subject to market conditions.
In 2025, Jubilant Bhartia acquired a 40% stake in HCCH for about Rs 10,000 crore, while Coca-Cola retained the remaining 60%. Following the IPO and future stake dilution, Coca-Cola is expected to gradually reduce its ownership further and eventually move toward a nominal minority holding, sources said. The company is nevertheless likely to retain a stake in the business after the public listing.
The shift would bring Coca-Cola's India operations closer to PepsiCo's long-established franchise-led bottling model. Pepsi's bottling operations in India are largely handled by Varun Beverages, which accounts for more than 90% of Pepsi's beverage volumes in the country.
Varun Beverages reported FY25 revenue of Rs 21,685 crore and posted 18.3% year-on-year revenue growth during the fourth quarter of FY26, a template for the scale that a franchise-led structure can achieve.
Industry executives said Coca-Cola's move also comes amid intensifying competition in India's soft-drinks market. Campa Cola and other challengers are estimated to have captured between 10% and 15% market share, chipping away at the dominance historically enjoyed by Coca-Cola and PepsiCo.
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At the same time, HCCB's financial performance has come under pressure. Revenue declined to Rs 12,751 crore in FY25, while net profit fell 73% year-on-year to Rs 757 crore.
The transition is expected to create a more asset-light operating structure for Coca-Cola in India while placing day-to-day bottling operations in the hands of a local partner, mirroring a model that has helped Pepsi expand rapidly through Varun Beverages.
Jubilant Bhartia Group declined to comment.
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