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India’s Competition Commission Approves Kandhari Global Beverages’ Acquisition
India’s regulatory body for fair market practices, the Competition Commission of India (CCI), has granted approval for Kandhari Global Beverages to acquire specific assets from Hindustan Coca-Cola Beverages (HCCB). This decision regarding the Kandhari Global Beverages acquisition, involving a prominent Coca-Cola bottler, signals a significant development in the Indian beverage market.
Approval Granted for Asset Acquisition
In a concise announcement released on April 22nd, the Competition Commission of India (CCI) stated its endorsement of the agreement between the two Coca-Cola bottling entities, initially formulated earlier in the year.
Kandhari Global Beverages is a key supplier and distributor of The Coca-Cola Company’s products within the Indian state of Rajasthan.
Details of the Acquisition
The acquisition involves Kandhari Global Beverages taking over Hindustan Coca-Cola Beverages’ (HCCB) assets located in northern Gujarat and Diu.
Kandhari Global Beverages maintains production facilities in several states, including Haryana, Punjab, and Himachal Pradesh.
Kandhari’s Expansion Ambitions
Varinder Pal Singh Kandhari, Managing Director of Kandhari Global Beverages, reportedly expressed the company’s aspirations for international expansion last month. He was quoted by Mint, highlighting a potential future beyond India, contingent on opportunities presented by The Coca-Cola Company.
Background and Previous Transactions
The landscape of Coca-Cola’s operations in India has seen several shifts recently:
- In December, The Coca-Cola Co. agreed to divest a 40% stake in Hindustan Coca-Cola Holdings, the parent company of HCCB, to Jubilant Bhartia Group.
- HCCB possesses 14 factories across ten Indian states, producing and distributing 37 products across eight brands, encompassing popular soft drinks like Coca-Cola, Thums Up, and Sprite.
- December also witnessed HCCB’s sale of its bottling operations in Jharkhand to Moon Beverages.
- At the beginning of the previous year, the group divested three bottling operations to SLMG Beverages, Moon Beverages and Kandhari Global Beverages. The latter secured assets located in Rajasthan.