The Bhartia family, led by Shyam Bhartia and Hari Bhartia, who head the Jubilant Bhartia Group, are to set to acquiring a 40 percent cent stake in Hindustan Coca-Cola Beverages (HCCB), the bottling arm of soft drink giant Coca-Cola in India, for Rs 12,500 crore. According to a report by The Economic Times, the deal, if successful, will be the largest acquisition for the Bhartia family.

As per details, the Bhartia brothers of the Jubilant group are contributing Rs 5,000 out of the agreed Rs 12,500 crore deal, while the rest of the amount is being financed by Goldman Sachs. The global investment firm has committed to fund the special purchase vehicle (SPV) created for the deal, which is expected to be formally announced later tonight, according to the ET report.

According to the report, the Bhartia family chose to partner with Goldman Sachs to avoid over-leveraging their conglomerate. The financier will syndicate the investment to domestic mutual funds and foreign banks. Earlier, the family had explored alternative financing options with Bain Credit, Apollo Global Management, among others.

Bhartia family set become market leaders in India’s beverage industry

The deal will make the Bhartia family a preeminent player in India’s thriving beverage industry which is dominated by Coca-Cola. HCCB manufactures and sells 37 products across eight categories for Coca-Cola India– the global beverage giant’s Indian arm. HCCB’s products include soft drinks, juices, and energy drinks, which are a major source of revenue for Coca-Cola India.

In financial year 2023-24, HCCB, according to its latest filing with the Registrar of Companies, reported a 9.2 percent surge in revenue to Rs 14,021 crore, and a 247 percent jump in net profit Rs 2,808.3 crore.

Coca-Cola had picked the Bhartia brothers after they outbid Burman family of Dabur, to collaborate in their bottling operations in India, which has witnessed a rapid expansion over the years. Both parties have signed an exclusivity agreement for bilateral negotiations, as per an earlier report by ET.

Bhartia family net worth

The Bharti family, who run the Jubilant Bhartia Group, have an estimated net worth of $4.54 billion, according to latest media reports. The majority of wealth of Bhartia family, led by Shyam and Hari Bhartia, comes from its business ventures in fast food, pharma, energy, and auto distribution sectors.

The Jubilant Group operates global fast food franchises, Domino’s Pizza, Dunkin Donuts, and Popeye’s, under its Jubilant FoodWorks subsidiary, in India.