Hindustan Coca-Cola Beverages announces restructuring

November 28
07:22 2017

Hindustan Coca-Cola Beverages Ltd (HCCB), the bottling arm of Coca-Cola in India, today announced structural reorganisation, following which an unspecified number of jobs will become redundant. The company, which aims to become USD 2.5 billion FMCG firm by 2020, however, said it expected to create “several hundred new jobs” through a much strengthened sales and supply chain organisation and most of them would be filled up from within the organisation.

HCCB is also setting up a premium division for niche and premium beverages, including smartwater, frozen fruit desserts and mixers, while amalgamating its existing Alternate Beverages Division into the mainstream distribution system. Announcing the reorganisation, HCCB CEO Christina Ruggiero said in a statement, “It was 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.”

At present, HCCB has nearly 8,000 employees. Elaborating on the planned changes, the company said, “In order to better flex and respond to changing consumer demands, HCCB will now operate under 7 zones instead of the current 5 and will also reorganise its corporate centre resources to serve in the zones and factories.”

The company further said it would have a “leaner corporate office and a much strengthened sales and supply chain organisation, thereby creating several hundred new jobs”, most of which would be filled from within the organisation.

“The reorganisation will, however, make a few existing jobs redundant, the incumbents of which will be encouraged to apply for the new jobs that have been created. No additional details are available at this time since this exercise is yet to begin,” it said. Ruggiero further said, “Changes of this nature take time to seep in, but our associates are committed to ensuring that HCCB is a key fixture in India’s consumer landscape and delivering the growth that we know is possible in India.”

Laying down the road map for India, HCCB said it has planned to become a USD 2.5-billion FMCG company by 2020 and the journey would include manufacturing and selling a wide range of beverages — from premium to value — and modifications to its operating structure. Stating that the company would also apportion more financial and human resources to frontline and field, HCCB said it would set up of a Premium Division to service customer requirements around niche and premium beverages.

These items will include smartwater, frozen fruit desserts, mixers and tonic water and amalgamating the existing Alternate Beverages Division into the mainstream distribution system. As a part of the growth plan, HCCB said it aimed to open one million new outlets by 2020. It distributes its products at 2 million outlets across 25 states. The company said its 2020 plans will focus on being consumer and customer centric, driving revenue growth, building a strong and agile system, digitisation and unlocking power employees.

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