The Jubilant promoters are gearing up for a major play in India’s soft drink business. To partly fund their Rs 12,500 crore acquisition of a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the Bhartia family is planning to sell minority stakes in three of their listed companies.
If all goes to plan, they could raise over Rs 2,000 crore by offloading small chunks of equity in Jubilant Ingrevia (6%), Jubilant Pharmova (3%), and Jubilant FoodWorks (2%), according to sources cited by Moneycontrol.
What’s in it for the average investor?
If you hold shares in any Jubilant group firm, this move could affect your stock’s short-term price. Selling promoter stakes may raise liquidity concerns, but in this case, it’s part of a larger strategic pivot. The Bhartia family isn’t exiting—just realigning assets to tap into India’s massive soft drink consumption growth.
The HCCB acquisition isn’t just fizzy excitement. It gives the Jubilant promoters a say in how Coca-Cola reaches your fridge.
Big gulp: The Coca-Cola play
Back in December, the Jubilant Bhartia Group announced they had signed a definitive agreement to acquire 40% of Hindustan Coca-Cola Holdings (HCCH), the parent of HCCB. The deal is happening through Jubilant Beverages Ltd, for a price tag of Rs 12,500 crore.
Already, Rs 5,650 crore has been raised through non-convertible debentures with major Indian AMCs like HDFC AMC, as reported by The Economic Times on June 5.
Now, the family is using the stake sale to close the funding gap, while also reportedly eyeing Rs 6,000 crore in debt from mutual funds, family offices, and HNIs.
Also Read DLF’s Privana North Sees 70% Pre-Launch Interest from HNIs – What’s Driving the Demand?
Meet the three businesses in play
- Jubilant FoodWorks – Master franchisee for Domino’s in India, plus Dunkin’, Popeyes, and local chains like Ekdum! and Hong’s Kitchen. Market cap: Rs 44,457 crore.
- Jubilant Pharmova – The group’s pharma and CRO arm with global operations. Market cap: Rs 18,207 crore.
- Jubilant Ingrevia – A specialty chemicals and life sciences company. Market cap: Rs 10,983 crore.
What’s really going on?
India drinks a LOT of Coke. HCCB runs 14 bottling plants and handles 43% of Coca-Cola’s volume in the country. The Bhartias want to own the tap.
In business-speak: vertical integration. In plain speak: control the source, control the market.
Is it risky to sell core assets to fund a Coke play? Maybe. But it’s a calculated gamble to become a beverage heavyweight in a country where cold drinks are a year-round craving.
Final fizz
This isn’t just about soft drinks. It’s about consolidation of power, long-term bets, and how India Inc’s new-age promoters are reshaping legacy business. The Jubilant promoters are not sitting still—they’re making moves. And this one might just pop.
Also Read Why Jubilant Bhartia’s ₹56.5B Debt Raise Could Change India’s Beverage Game
