Jubilant Foodworks Ltd. said on Thursday that it has entered into a memorandum of understanding with Coca-Cola India Pvt. to buy the portfolio of sparkling beverage and other products from the company's authorised bottlers.
Jubilant FoodWorks, which is a subsidiary Jubilant Bhartia Group, will conduct "marketing activities for the said products" as per pact, an exchange filing stated.
The two companies will execute a master agreement starting from April 2025 based on the terms and conditions mentioned in the MoU, the filing added.
Coca-Cola's authorised bottlers will become suppliers of sparkling beverages and other products to Jubilant FoodWorks, after the agreement is executed, it said, adding that the arrangement will help Jubilant FoodWorks to "enhance its consumer offerings".
The MoU comes days after Coca-Cola announced it will sell 40% of its stake in Hindustan Coca-Cola Holdings Pvt., the parent company of Hindustan Coca-Cola Beverages Pvt.
The deal, valued at approximately Rs 10,000 crore, highlights the growing significance of India as a strategic market for global beverage players like Coca-Cola.
This development is seen as part of Coca-Cola's strategy to divest bottling operations globally, in adherence to its "asset-light" strategy.
The acquisition aligns with Jubilant Bhartia Group's strategy of diversifying its business interests. The group, which already operates successful companies such as Jubilant Pharmova Ltd. (market cap: Rs 18,301 crore), Jubilant Ingrevia Ltd. (Rs 13,535 crore), Jubilant FoodWorks Ltd. (Rs 46,759 crore), and Jubilant Industries Ltd. (Rs 2,469 crore), will gain a foothold in the thriving beverage market.
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