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Hindustan Coca-Cola Beverages (HCCB), the bottling arm of beverage major Coca-Cola in India, posted a net profit of ₹375.4 crore in FY 22, clocking a strong growth of over ₹71.6 crore in FY 21. As per the company’s regulatory filing, sourced from business intelligence platform, Tofler, the company garnered a total income (standalone) of ₹9,147.74 crore in FY 22, up 30.6 per cent over FY 21. The company said it has been substantially investing to ramp up manufacturing capacity for 2023 and beyond.
Volume, revenue growth
Responding to a businessline’s queries, Melvin Tan, Chief Financial Officer, Hindustan Coca–Cola Beverages (HCCB) Pvt Ltd said the increase in profits after tax was on account of robust volume and revenue growth. “HCCB has been able to build positive momentum and deliver strong results post-Covid, on the back of renewed consumer confidence and strong execution,” he added.
The company recently underwent a leadership transition, as Juan Pablo Rodriguez took over as the new CEO of HCCB with the retirement of former CEO Neeraj Garg. HCCB invested about Rs 684 crore to ramp up manufacturing capacity in FY22.
“We stay committed to India’s growth story and continue to find the right investment opportunities. Earlier this year, we made a few announcements which include ₹1,000 crore investment for a greenfield site in Banda Thimmapur, Telangana and capacity expansion worth ₹550 crore and ₹330 crore in Khordha, Odisha and Goblej, Gujarat respectively. These investments will help us build capacity for 2023 and beyond,” Tan added.
He pointed out that investments are not just limited to line expansion at factories. “We also have substantial feet on the street that manages our vast distribution network. A lot of our capex is also invested in sales-generating infrastructures like visi- coolers, IT and digital, distribution and logistics,” Tan added.
For Coca-Cola India, the June quarter, in the ongoing fiscal was the “best-ever” in terms of volume growth on the back of a strong summer season sales. The beverage major has stepped up focus on smaller packs such as 200 ml returnable glass bottles,150 ml tetrapak and 250 ml PET bottles to grow volumes amidst challenges such as inflationary pressures.
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