Coke#39;s bottling arm HCCB eyes $2.5 bn sales by 2020
Coca-Cola India’s bottling arm Hindustan Coca-Cola Beverages (HCCB) aims to be a USD 2.5 billion company by 2020.
The company, which reported a revenue of Rs 9,472 crore for the financial year 2017, said going forward it plans to manufacture and sell a wide range of beverages from premium to value category.
The company will also modify its operating structure, the Gurugram-based HCCB said in a statement issued from Bengaluru.
“It’s very clear from our research, conversations and market data that today we are not structured in a way that allows us to fully leverage our scale and market capabilities,” HCCB chief executive Christina Ruggiero was quoted as saying the statement.
“Changes of this nature take time to seep in, but our associates are committed to ensuring that we are a key fixture in the country’s consumer landscape and delivering the growth that we know is possible here,” she added.
The company will also be setting up a premium division to meet customer requirements around niche and premium beverages such as smart-water, frozen fruit desserts, mixers and tonic water, and amalgamating its existing alternate beverages division to the mainstream distribution system.
As a part of its growth plan, it aims to open 1 million new outlets by 2020. It currently distributes its products through 2 million outlets spanning 25 states.
It will operate under seven zones instead of the five at present and will also re-organise its corporate centre resources to serve in the new zones and factories.
“The company will have a leaner corporate office and a much-strengthened sales and supply chain, thereby creating several hundred new jobs. We expect to fill most of these new jobs from within the organization. The move will make a few existing jobs redundant, but the incumbents will be encouraged to apply for the new jobs that will be created,” it said without providing additional details.
The company is responsible for manufacturing, packaging, sale and distribution of beverages of Coca-Cola. It owns and operates 21 factories and sources from and supports 11 plants in the contract-manufacturing mode.