Hindustan Coca-Cola Beverages (HCCB), a bottling company owned by Coca-Cola India, is reportedly planning an initial public offering (IPO) as part of its expansion plans.
The Economic Times reported sources as saying that discussions on a possible public offer were in the internal planning stage. HCCB has been engaging with prospective investment bankers to devise comprehensive strategies for the proposed listing.
An executive said the robust performance of the beverages segment in the fast-moving consumer goods (FMCG) landscape had driven the IPO move, the report said.
The segment’s resilience has been attributed to its relative under-penetration and the availability of products at affordable price points. India's per-capita consumption of soft drinks remains low on a global scale, presenting substantial growth opportunities for industry players, the report added.
"While a specific timeline for the IPO listing remains undetermined, the company maintains a positive outlook on India, recognising it as a pivotal growth market," the report quoted the executive as saying.
Moneycontrol couldn’t verify the report independently.
Coca-Cola India and HCCB did not respond to ET inquiries.
In March, HCCB announced a Rs 350-crore investment plan in Madhya Pradesh for setting up two manufacturing lines at its Rajgarh plant, taking its investment in the central Indian state to Rs 660 crore.
Coca-Cola's bottling operations in India are managed by HCCB and approximately half a dozen franchisees, responsible for the production and distribution of popular beverages such as Coke, Thums Up, Sprite, Minute Maid, Maaza, and Kinley water.
The bottling responsibilities are evenly divided between HCCB and its franchisees.
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