Coca-Cola India Bottling Unit To Get $1 Billion IPO?

Coca-Cola (KO) is reportedly exploring an initial public offering (IPO) for its Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB), which has sent ripples through the market. The potential deal, aimed at raising approximately $1 billion and valuing HCCB at around $10 billion, has investors closely watching the beverage giant's strategic moves in a key growth market.

The news of the possible IPO comes amidst a series of strategic realignments for Coca-Cola in India. Back in December 2024, the company divested a 40% stake in HCCB to the Jubilant Bhartia Group in a deal estimated at ₹10,000 crore (approximately $1.47 billion). This move was in line with Coca-Cola's global strategy to reduce direct involvement in bottling operations and adopt an asset-light model.

Further solidifying this strategy, April 2025 saw the Competition Commission of India approve Kandhari Global Beverages' acquisition of Coca-Cola's bottling plant in north Gujarat and the Union Territory of Diu for ₹2,000 crore.

Adding to the dynamic landscape is the news that Moon Beverages, another significant Coca-Cola bottler in India, is also considering an IPO to fuel its expansion plans. Moon Beverages has invested over ₹4,000 crore in new plants and aims to double its revenue within the next three to four years, demonstrating the robust growth potential within the Indian beverage market.

The potential IPO of HCCB, alongside recent divestments and partnerships, signals Coca-Cola's dedication to refining its operational structure in India. The IPO could unlock value for Coca-Cola shareholders while providing HCCB with the capital needed to further expand its operations in the high-growth Indian market. Earnings fast approach, where management commentary could provide some further clarity.