MUMBAI: SLMG Beverages - Coca-Cola's largest Indian bottler - is brewing up a storm with ambitious expansion plans that would make even the most hardened business tycoons gasp for breath.
Ladhani Group, the fizz-fuelled empire behind SLMG Beverages, announced yesterday a whopping Rs 11,000 crore investment strategy over the next five years, with the lion's share – Rs 8,000 crore – earmarked for expanding its bottling dominance across Uttar Pradesh and newly-conquered Bihar.
"We're looking at doubling our revenue to Rs 20,000 crore," said joint managing director Paritosh Ladhani, whose ambition seems as effervescent as the products his company bottles at a mind-boggling rate of 40 million per day.
Already among Coca-Cola's top 15 global bottlers, SLMG has set its sights on cracking the elite top 10 by 2030. The company recently stormed into Bihar after snatching up territorial rights from Coca-Cola's own bottling arm HCCBL, a move described by industry insiders as "gaining prime real estate in India's beverage battleground."
The Lucknow-based firm is currently constructing a Rs 1,200 crore plant in Bihar's Buxar district, with another Rs 1,500 crore facility in the pipeline. Meanwhile, its existing plants near Lucknow, Amethi, Bareilly and Ayodhya will receive substantial upgrades.
Not content with dominating just one sector, the group plans to splash Rs 3,000 crore into its hospitality business, doubling its hotel room portfolio faster than you can say "ice and a slice."
"Our per capita consumption is still quite low and we are aspiring to catch up," noted Vivek Ladhani, executive director, in a masterclass of understatement – considering Indians currently drink roughly one-eighth the cola Americans consume annually.
The company's aggressive expansion comes just as year ago-appointed CEO Costin Mandrea settles into his role. The European veteran brings 25 years of beverage industry expertise and a bold mission: "We are building the first Indian world-class bottler, a bottler that is made in India and able to sit at the same table with bottlers from Latin America, Europe and Asia."
With its newly expanded territory now covering a staggering 360 million potential consumers across UP, Uttarakhand and Bihar, SLMG appears poised to ride India's fizzy drinks boom, which is expected to bubble up at a refreshing 7.29 percent annually through 2028.
When asked about a potential IPO, Ladhani remained coy: "Definitely, we have a plan." But for now, the company seems content to shake up the market through explosive growth rather than share offerings, backed by what executives described as "sufficient internal accruals" to fund their effervescent ambitions.
