Mumbai / New York
Coca-Cola’s India Unit HCCB Reports 10% Revenue Rise | Net Profit Threefold | Eyes $1 Billion IPO
1. IPO in the Pipeline
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HCCB (Hindustan Coca-Cola Beverages) is planning a $1 billion (₹8,300 crore) Initial Public Offering (IPO).
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Discussions are still in early stages, with meetings held among top bankers.
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The IPO’s timing, structure, and size are under deliberation, according to Bloomberg.
2. Leadership and Expansion
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Hemant Rupani appointed as CEO, effective September 8, 2024.
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He brings experience from Mondelez, PepsiCo, Vodafone, and Britannia.
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HCCB operates 14 factories across 12 Indian states, headquartered in Bangalore.
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Network includes 20 lakh retailers, 2,000 distributors, and 5,200 employees.
3. Financial Performance FY24 (₹ crore)
| Metric | FY23 | FY24 | % Change |
|---|---|---|---|
| Total Income | 12,848.57 | 14,236.18 | +10.77% |
| Revenue from Operations | 12,735.08 | 14,021.54 | +10.10% |
| Net Profit | 936.12 | 2,808.31 | +200% (3x) |
| Profit Before Tax (PBT) | 1,239.46 | 3,718.38 | +200% (3x) |
| Total Expenses | 11,448.20 | 13,044.50 | +13.94% |
| Tax Expense | 204.32 | 910.07 | +345% |
4. Expense Breakdown
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Advertising & Sales Promotion:
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Increased 69.21% YoY to ₹108.11 crore.
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Inventory Losses & Leakages:
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Rose 25.4% to ₹94.07 crore.
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Investment in marketing and inventory management signals aggressive market expansion.
5. Market Position and Footprint
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HCCB – largest Coca-Cola bottler in India, incorporated on February 14, 1997.
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Product portfolio spans premium and mass brands — Coca-Cola, Sprite, Thums Up, Fanta, Limca, Maaza, Minute Maid, Kinley, SmartWater.
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The Coca-Cola Company sells beverages in over 200 countries, affirming global reach and credibility.
6. IPO Outlook
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The $1 billion IPO could strengthen Coca-Cola’s footprint in India’s FMCG and beverages market.
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Market analysts project strong investor interest due to consistent double-digit revenue growth and 3x profit rise.
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Listing could mirror India’s ongoing FMCG IPO wave, fueling valuation optimism.
7. Key Financial Insights
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FY24’s net profit margin improved sharply due to operating efficiency and high seasonal demand.
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Rising marketing expenditure indicates focus on market share consolidation.
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Tax expenses surged, hinting at a shift toward higher profitability brackets.
8. Industry Context
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India’s non-alcoholic beverage market is growing at ~8–9% CAGR.
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Increased demand for packaged drinks across urban and rural markets strengthens HCCB’s IPO case.
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Global parent Coca-Cola aims to unlock valuation from its Indian arm, tapping into growth potential.
Disclaimer:
This article is for informational purposes only and not intended as financial advice. Readers are encouraged to conduct their own research or consult with a registered financial advisor before making investment decisions. © The Profit India, 2025.
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