Coca-Cola Seeks Bankers for $1 Bn India Bottler IPO

Coca-Cola Co has initiated the process of selecting investment banks for the proposed initial public offering of its Indian bottling unit, Hindustan Coca-Cola Beverages (HCCB), Bloomberg reported.

The share sale could raise around $1bn (approximately ₹9,500 crore). The Atlanta-based beverage giant targets a valuation of about $10bn for the domestic business.

Pitch presentations are scheduled for next week in London. Adviser Rothschild & Co will meet prospective banks there to coordinate roles on the transaction, the report indicated.

Discussions remain ongoing. Key details, including the timing, size, valuation, and structure of the public issue, could still change, the report added.

Tapping Indian Capital Markets

The proposed listing adds to a growing pipeline of multinational companies tapping India's capital markets. Strong investor demand continues to drive foreign entities to monetise their domestic subsidiaries.

Recent major listings highlight this market shift. LG Electronics listed its Indian unit, LG Electronics India, in 2025.

Before that, Hyundai Motor Co raised approximately $3.3bn through the public issue of Hyundai Motor India in 2024.

Hindustan Coca-Cola Operations

Bengaluru-headquartered HCCB operates as one of the largest soft-drink bottlers in the country. According to its website, the company serves over 1.7 million retail outlets and employs over 5,000 people.

It runs 14 manufacturing plants across 12 states and supplies products across 236 districts in India.

In 2025, Coca-Cola sold a minority stake in Hindustan Coca-Cola Beverages (HCCB) to India's Jubilant Bhartia Group. The divestment forms part of a broader corporate strategy to gradually franchise its bottling operations across the market.

Levies Imposed on Several Drink Brands

This development follows the Food Safety and Standards Authority of India (FSSAI) issuing notices to multiple beverage brands over their use of the term “energy drink” and related claims in both packaging and marketing.

The FSSAI stated that each of these products has been advertised and labelled with expressions such as “energy drink” on their labels and, in some cases, on e-commerce platforms.

The FSSAI outlined three primary grounds for its action.

First, the authority has not established any official standard for “energy drinks” or similar categories of products.

Second, the Food Category System under the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, is not meant to be used for naming or labelling products.

Third, the functional or therapeutic claims made by these brands, such as “vitalises body and mind,” “enhancing focus,” “boost energy levels,” “aid in general weakness,” and “stimulates mind energises body," are not permitted for food products under the Food Safety and Standards Act, 2006 and its corresponding rules and regulations.