Atlanta-based fizzy drink maker Coca-Cola on Wednesday announced it had reached an agreement with Jubilant Bhartia Group to sell a 40 per cent stake in Hindustan Coca-Cola Holdings (HCCH). 

HCCH is the parent company of Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s largest bottler in India. 

According to sources, individuals familiar with the deal at Bhartia Group have signed non-disclosure agreements with the beverage major. However, media reports suggest the deal is pegged at around Rs 12,500 crore, valuing HCCB at Rs 31,250 crore. 

Sanket Ray, president of Coca-Cola India and Southwest Asia operating unit, in a company statement, said: “Jubilant’s rich experience will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers.”

Jubilant Bhartia Group was advised by Morgan Stanley as the exclusive financial advisor, while Rothschild & Co advised Coca-Cola.  

Both companies see several synergies and benefits between HCCB and existing businesses of Jubilant Bhartia Group, like Domino’s Pizza and other food chains. Both partners will take the company to the next level, said a banker close to the deal. HCCB primarily operates in the South and West Indian markets.