Kandhari Global Beverages Seeks CCI Approval to Acquire Hindustan Coca-Cola’s NAB Business in North Gujarat and Diu.

Coke bottler Kandhari Global Beverages Private Limited (Kandhari Global) has approached the Competition Commission of India (CCI) for approval to acquire the non-alcoholic beverage (NAB) business of Hindustan Coca-Cola Beverages Private Limited (HCCB) in north Gujarat and the Union Territory of Diu.

The proposed deal, estimated at approximately ₹2,000 crore, has been filed under Section 5(d) of the Competition Act, 2002. If approved, the acquisition would bolster Kandhari Global Beverages’ market presence in the region, enhancing its distribution network and operational scale.

According to the combination notice, the transaction involves transferring HCCB’s NAB operations, including preparation, packaging, supply, and distribution in the specified territories. This strategic move is expected to help Kandhari Global expand its geographical footprint and improve its supply chain efficiency in the Indian beverage market.

Kandhari Global Beverages is a key player in India’s beverage sector, while HCCB serves as the bottling and distribution arm of The Coca-Cola Company in India. The proposed acquisition is anticipated to have a significant impact on market competition, with the CCI reviewing its implications to ensure compliance with regulatory norms and prevent any anti-competitive practices.

Industry experts see the move as a crucial step for Kandhari Global to consolidate its position in the NAB segment. If approved, the deal is expected to enhance the acquirer’s market reach and strengthen its hold in the fast-growing beverage sector in north Gujarat and Diu.

The CCI will now assess the competitive implications of the transaction before granting approval. Further details are expected to emerge as the regulatory review progresses, according to market analysts.

This development follows Coca-Cola’s recent sale of a 40% stake in HCCB to the Jubilant Bhartia Group in December for ₹12,500 crore ($1.47 billion). The Jubilant Bhartia Group also owns the Domino’s Pizza and Dunkin’ Donuts franchises in India.

Additionally, last year, HCCB divested its bottling operations in Rajasthan, Bihar, the Northeast, and West Bengal to three local bottling partners—Kandhari Global, Moon Beverages, and SLMG Beverages—further decentralizing its operations in the Indian market.

HBL