Coca-Cola offers a $1-billion swig to India Inc families
Coca-Cola India has sounded out the promoters of at least four top Indian business houses — including the Bhartia family that owns the Jubilant Group running the Domino's pizza chain, and the Burmans of Dabur — to sell a significant minority stake in its wholly owned bottling subsidiary, Hindustan Coca-Cola Beverages (HCCB), executives aware of the developments said.
The Parekh family of Pidilite Industries, makers of the iconic adhesive brand Fevicol, M-Seal and Dr Fixit, and the promoter family of Asian Paints have also been approached for a potential $800 million to $1 billion investment via their respective family offices.
Some of those approached are also exploring if they would route the proposed investments through one of their group companies. Jubilant Foodworks, India's largest food services company, for example is already in the consumer business and has the exclusive franchise for Domino's Pizza and Dunkin' Donuts and Popeyes in India. The company also owns the Domino's franchise in five other markets across Asia and has acquired Coffy, a leading coffee retailer of Turkey.
Since it will be a bulge-bracket deal, it is still not clear if the business families will team up to form a consortium or choose to make an independent play.
Pre-IPO Value Unlocking Exercise
Some have also tapped marque PE groups to become partners as the negotiations reach a final stage.
The valuation of HCCB, and the quantum of stake to be sold, are yet to be finalised. But this investment is being seen as a value unlocking
