Coca-Cola Bottler HCCB Cuts 300 Jobs Amid 73% Profit Decline
Hindustan Coca-Cola Beverages (HCCB), the wholly owned bottling arm of Coca-Cola in India, has initiated a workforce reduction of approximately 300 employees.
Announced internally on December 24, 2025, the downsizing affects roughly 4% to 6% of the company’s total workforce of 5,000.
The restructuring spans multiple verticals, including sales, supply chain, distribution, and plant-level bottling operations.
Hindustan Coca-Cola Beverages Restructuring Under New Leadership
The layoffs come six months after a major leadership transition at HCCB.
In July 2025, the company appointed Hemant Rupani, a veteran from Mondelez International, as its Chief Executive Officer, succeeding Juan Pablo Rodriguez.
Hemant was tasked with navigating the company through a challenging financial landscape and a rapidly evolving consumer market.
A company spokesperson described the move as a “regular business review process,” stating: “Staying in sync with evolving business needs requires us to re-evaluate capabilities and organizational structures. This exercise is minor in scale and non-disruptive to our day-to-day operations.”
Hindustan Coca-Cola Beverages Financial Pressures and “Higher Base” Effect
The immediate catalyst for this cost-rationalization exercise appears to be a sharp downturn in financial performance.
In the fiscal year ending March 31, 2025 (FY25), HCCB reported a staggering 73% decline in net profit, falling to ₹756.64 crore from ₹2,808.31 crore in the previous year. Revenue from operations also saw a 9% dip, landing at ₹12,751.29 crore.
However, the company clarified that the decline is partly due to a “higher base effect.”
In FY24, HCCB recorded exceptional gains after selling off bottling operations in several territories—including Rajasthan, Bihar, the North East, and parts of West Bengal—to franchise partners like Moon Beverages and SLMG Beverages.
While these sales provided a one-time cash infusion in 2024, they resulted in a smaller revenue footprint for HCCB in 2025.
Challenges: Weather and Competition
Beyond internal restructuring, external factors have dampened the beverage giant’s performance:
- Unseasonal Rainfall: Heavy and irregular rains during the peak summer months (March to September) significantly lowered consumption during the industry’s most profitable quarter.
- Market Competition: Rising competition from local and emerging brands has forced legacy players to optimize their cost structures to maintain margins.
The Road Ahead: IPO and Refranchising
The downsizing is part of a broader global strategy by The Coca-Cola Company to move toward an “asset-light” model.
The parent company aims to focus on brand building and concentrate manufacturing by refranchising bottling territories to local partners.
This strategy allows them to reduce direct ownership of capital-intensive bottling plants.
Rumors continue to circulate regarding a potential $1 billion IPO for HCCB. If it proceeds, the listing could value the unit at approximately $10 billion.
A leaner, more profitable organizational structure is widely seen as a prerequisite for a successful market debut.
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