Vikrant Shekhawat : Sep 02, 2024, 06:20 PM
Dabur Group: Dabur Group is planning to buy a major stake in Coca-Cola, taking a significant step towards its business expansion. Dabur's Burman family and Jubilant Group promoters are set to buy 40% stake in Bharatia Hindustan Coca-Cola Beverages (HCCB) for Rs 10,800-12,000 crore ($1.3-1.4 billion). The transaction is valued at Rs 27,000-30,000 crore ($3.21-3.61 billion).Deal progress and reportsSources close to the deal told Economic Times that the two parties exchanged bids last week. Coca-Cola will decide whether the deal will include one or two co-investors or an investor consortium will be formed. It is being said that a decision on the deal will be taken by the end of this financial year.According to a June 18 report, Coca-Cola has approached Indian business houses and family offices of billionaire promoters for investing in HCCB. These include the Parekh family of Pidilite Industries and the promoter family of Asian Paints.Investor interestMany experts believe that the family offices of Kumar Mangalam Birla, Sunil Bharti Mittal and tech billionaire Shiv Nadar were also approached. However, only the Burmans and the Bharatias have bid for stakes. These cash-rich families may find a structure attractive that could also include their listed companies such as Dabur India and Jubilant FoodWorks.Companies' businessDabur's portfolio offers a wide collection of FMCG and health-focused products, while Jubilant FoodWorks owns franchises of Domino's Pizza, Dunkin Donuts, and Popeyes in India. Additionally, Jubilant has acquired franchises of Domino's in five other markets in Asia and a leading coffee retailer in Turkey.Experts' opinionWhile Coca-Cola wants to unlock the potential of packaged beverages in India, some experts believe they should be offered an additional stake in HCCB, an official said. Coca-Cola is looking for key business partners, though spokespersons did not comment on the matter.