Coke bottler Kandhari Global Beverages Private Limited (Kandhari Global) has approached the Competition Commission of India (CCI) for approval to acquire the non-alcoholic beverage (NAB) business of Hindustan Coca-Cola Beverages Private Limited (HCCB) in north Gujarat and the Union Territory of Diu.
The proposed deal, estimated at about ₹2,000 crore, has been notified under Section 5(d) of the Competition Act, 2002. It aims to strengthen Kandhari Global Beverages’ market presence in the region.
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According to the combination notice, the transaction involves the transfer of Hindustan Coca-Cola Beverages’ operations related to preparing, packaging, supplying, and distributing NAB products in the specified territories. The acquisition is expected to help Kandhari Global expand its geographical footprint and enhance its operational capabilities in the Indian beverage industry.
Kandhari Global Beverages is a key player in the Indian beverage sector, while Hindustan Coca-Cola Beverages is a leading bottling and distribution arm of The Coca-Cola Company in India. The deal is anticipated to have a significant impact on market competition, and CCI’s evaluation will determine whether it meets regulatory requirements to prevent any adverse effects on competition.
Industry experts view the proposed acquisition as a strategic move for Kandhari Global Beverages to consolidate its position in the NAB segment. If approved, the deal could lead to increased efficiency in supply chain management and broaden the acquirer’s consumer reach in north Gujarat and Diu.
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The CCI will now assess the potential implications of the combination on market dynamics, ensuring that the transaction does not lead to anti-competitive practices. Further details will emerge as the regulatory review progresses, economy watchers said.
HCCB is now part owned by the Jubilant Bhartia Group that also has the Domino’s Pizza and Dunkin Donuts franchises for India. Coca-Cola had recently sold a 40 percent stake in HCCB to the Indian group in December for ₹12,500 crore ($1.47 billion).
It maybe recalled HCCB had last year sold its bottling operations in Rajasthan, Bihar, the Northeast and West Bengal to three local bottling partners — Kandhari Global, Moon Beverages and SLMG Beverages.
