3 months ago
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SLMG Beverages, which is the largest independent bottler of Coca-Cola in India and South West Asia, is planning to invest ₹3,000 crore in calendar year 2024 to expand capacity in its existing territories and towards its entry into the Bihar market.
The Coca-Cola Company recently announced its decision to transfer its bottling operations to three territories, including Bihar. SLMG Beverages had bagged rights for the Bihar market and as per the agreement it will assume ownership and operational responsibility of that territory.
Currently, the company caters to the 250 million population in Uttar Pradesh (UP) other than the National Capital Region portion, 4 districts of Madhya Pradesh and the whole of Uttarakhand. With Bihar in its kitty, it will grow its market to 360 million.
Partiosh Ladhani, joint managing director of SLMG Beverages said, “We just acquired the Bihar territory which contributes about 4% of India’s sale. Now SLMG will be contributing to 22% of India’s volume, and close to about 23% in value (for Coca-Cola). So, we will cross the turnover mark of ₹7,500 crore in 2024.”
On the growth in its area of operations he said, “This industry is all about population. So, the more the population, the more the opportunity for us to grow,” he added.
On the investment plan he said, “We at the Ladhani group had announced to invest more than ₹5,000 crore in the soft drink business in 2023 and 2024. We have already invested about ₹2,000 crore last year. So in 2024 we are going to invest more than 3,000 crore in the business including our entry into Bihar,” he added.
“We will fund it through promoter’s equity and loan from financial institutions,” he further said. He said the Ladhani group is professionalising its management as it gains scale.
“Our objective is to be in the league of top 150 companies in India in terms of revenue. So we are professionalizing the group. The promoters and owners will start taking a back seat and we will hire people who are smarter than us to run the company,” he added.
