Dabur, Jubilant owners bid for stake in Coca-Cola's India bottling arm HCCB
Burman family of Dabur and promoters of Jubilant Group, the Bhartias, are separately closing in on a 40% stake in Hindustan Coca-Cola Beverages (HCCB) for Rs 10,800-12,000 crore ($1.3-1.4 billion), said executives aware of the development.
This values Coca-Cola India’s wholly owned bottling subsidiary at Rs 27,000-30,000 crore ($3.21-3.61 billion).
The two sides submitted bids over the weekend, said the people cited.
Parent Coca-Cola Co will decide if the deal will involve one or two co-investors, or if negotiations lead to creation of an investor consortium. A decision is likely by the end of this fiscal year.
ET was first to report on June 18 that Coca-Cola had sounded out a group of Indian business houses and family offices of billionaire promoters to buy into HCCB, an arm it eventually wants to take public to cash in on the bullish domestic capital markets.
Those tapped are said to include the family office of the Parekhs of Pidilite Industries and the promoter family of Asian Paints, along with the Burmans and Bhartias.
Some of the people cited earlier indicated that the family offices of Kumar Mangalam Birla, Sunil Bharti Mittal and tech billionaire Shiv Nadar were also approached. However, only the Burmans and the Bhartias are said to have sought to bid for stakes.
The cash-rich families are open to a structure that may even see their listed flagships — Dabur India and Jubilant Foodworks (JFL) — join forces as co-investors to leverage synergies with their existing fast moving consumer goods (FMCG) and
