Coca-Cola India has made an announcement about refranchising its bottling operations in certain territories. This move is seen as a part of Coca Cola’s global strategy to focus more on brands and less on asset-heavy operations.

What Happened: As per a recent Economic Times report, Hindustan Coca-Cola Beverages (HCCB), a Coca-Cola India subsidiary, will hand over bottling operations in North, East, and North East India to Moon Beverages, SLMG Beverages, and Kandhari Global Beverages.

Kandhari Global Beverages will manage Rajasthan’s market, while SLMG Beverages will oversee operations in Bihar. Moon Beverages will take charge of the North-East market and certain West Bengal regions.

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The CEO of HCCB India, Juan Pablo Rodriguez, views this transfer as a crucial decision that will allow investments in all business sectors, creating an environment of scale and contiguity.

The Vice President of India operations, Coca-Cola India, Sundeep Bajoria, believes that these transfers will help spur more investments in areas like innovation, infrastructure, technical capabilities, talent acquisition, and business expansion.

Why It Matters: Coca-Cola’s refranchising step reflects its global policy of focusing more on branding and strategy by divesting from asset-heavy bottling operations. The company’s plan to shift its focus on core brand development and strategy will enable it to streamline operations, optimise resources, and foster more growth in the Indian market.

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