MUMBAI: It’s bottling  a major partnership with  the famous Bhartia brothers  - Shyam and Hari.  Atlanta-based The Coca-Cola Co today announced that it has reached an agreement with the multibillion dollar, well- diversified Jubilant Bhartia group to acquire a 40 per cent stake in Hindustan Coca-Cola Holdings (HCCH). 

HCCH is  the parent company of the largest Coca-Cola bottler in India, Hindustan Coca-Cola Beverages (HCCB) which primarily has a presence in the south and west of India. 

“The Jubilant Bhartia group will bring invaluable experience and insights to our business as we continue to grow our presence in India,” said The Coca-Cola Co president of international development Henrique Braun. “Jubilant Bhartia Group brings a track record of building and growing consumer and other businesses in India with international partners. They are also committed to investing in the communities they serve.”

The Coca-Cola Co’s locally-owned franchise partners in India are positioned to drive successful outcomes. The investment by the Jubilant Bhartia Group family will contribute to the company’s ongoing success and help strengthen its position in the Indian market, added The Coca-Cola Co in a press statement.

Jubilant Bhartia group founder & chairman Shyam S. Bhartia and founder & co-chairman Hari S. Bhartia said the investment is an ideal addition to their business. They have a fortune estimated at about $.4.5 billion according to Forbes. The group has a presence in fast food, pharma, energy and auto distribution. Group company Jubiliant Foodworks operates the Dominos Pizza, Dunkin Donuts and Popeye’s franchises in India.

“The Coca- Cola Co is home to some of the most respected global brands and we are delighted to be associated with them,” Bhartia said. “Together, we will leverage opportunities to grow the business to greater heights and ensure more Indian consumers can enjoy The Coca Cola Co’s refreshing portfolio of iconic local and international brands.”

Because the brothers have non-disclosure agreements with the  beverage giant, the Bhartias were loath to reveal any details of the scale of investment the deal entailed, but market guesstimates are that it  is at around Rs 12,500 crore, with HCCB being valued at Rs 31,250 crore.

The Coca-Cola India  president  & southwest Asia operating unit head Sanket Ray said.  “We welcome the Jubilant Bhartia group to the Coca-Cola system in India. With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers.”

The transaction is subject to regulatory approval. Rothschild & Co acted as exclusive financial adviser to The Coca-Cola Co while Morgan Stanley was the advisor for the Jubiliant Bhartia group