Beverage major Coca-Cola on Wednesday said that it is divesting bottling operations of Hindustan Coca-Cola Beverages Pvt Ltd (HCCB) in four territories in North India.

The divestment will happen in favour of its existing franchise bottling partners. HCCB is the company-owned bottling arm of Coca-Cola in India.

The company said the process will involve HCCB transferring its business operations in four territories in North India to the franchise bottling partners.

“The change involves four non-contiguous territories in which HCCB currently operates and is designed to build regional scale, stimulate investments and growth in the northern part of the country,” the company said in a statement.

Existing partners

Sources said the business operations of HCCB will be transferred to the existing franchise bottling partners, which includes Moon Beverages, Enrich Agro Pvt. Ltd, Kandhari Beverages, besides entities controlled by the Ladhani brothers.

The beverage major emphasised that its company-owned bottling arm, HCCB, will continue to operate in eastern, western and southern regions of the country.

“The company’s bottling network in India comprises 14 bottlers, including HCCB, and no further immediate realignment is envisaged currently,” Coca-Cola said.

HCCB had posted a net profit of ₹ 321 crore in FY 2018-19.Net revenue grew by 10 per cent to ₹9,427 crore in FY19 from ₹ 8,564 crore in FY18.

Earlier this year, beverage major PepsiCo India had decided to divest its company-owned bottling operations in the southern and western regions to Varun Beverages Ltd.