New Delhi: Hindustan Coca-Cola Beverages (HCCB), the company that bottles and distributes Coca-Cola products across India, has reportedly begun trimming its workforce. Around 300 employees are said to be affected by the move. The job cut is part of the company’s plan to improve profitability and streamline its organisational setup. The development comes as HCCB fine-tunes its business strategy under new leadership, according to a report by The Economic Times, citing sources familiar with the matter.
Job cut decision communicated internally
The move has been communicated to employees over the past two weeks. Hindustan Coca-Cola Beverages currently has a workforce of around 5,000 people across the country and operates 15 manufacturing plants in India. Through these facilities, the company bottles and distributes some of the country’s most popular beverage brands, including Coca-Cola, Thums Up, Sprite, Minute Maid and Kinley water.
A company spokesperson told The Economic Times that the layoffs are part of a regular business review process. “Staying in sync with evolving business needs requires us to re-evaluate capabilities, structures and take corrective actions where necessary,” the spokesperson said. The company added that the job cuts are small in scale, will not disrupt operations, and are carried out from time to time to remain competitive and efficient.
Leadership change, falling profits push cost overhaul
The restructuring comes after a leadership change announced in July, when Hindustan Coca-Cola Beverages (HCCB) appointed Hemant Rupani, a former executive at Mondelez International, as its new chief executive officer. Rupani replaced Juan Pablo Rodriguez at a time when the company was dealing with mounting financial and operational challenges.
Recent financial numbers highlight why cost rationalisation has become critical. In FY25, HCCB reported a steep 73 per cent drop in net profit to Rs 756.64 crore, while revenue from operations fell 9 per cent to Rs 12,751.29 crore, according to regulatory filings accessed via business intelligence platform Tofler. The company said the sharp decline was partly due to an unusually strong performance base in FY24.
Profit impacted by asset sale and franchise model
The company said the fall in profits was partly due to a high base in FY24, a year when it sold its bottling operations in several regions such as Rajasthan, Bihar, the North-East and parts of West Bengal. These operations were transferred to franchise partners including Moon Beverages, Kandhari Global Beverages and SLMG Beverages.
Coca-Cola operates on a franchise-led model in India where independent bottling partners handle manufacturing and distribution in designated areas. As a result, any change in bottling ownership can have a direct impact on the company’s reported revenue and profit figures.
Apart from internal restructuring, weaker demand has also weighed on the business. Unseasonal and heavy rainfall during the peak summer months from March to September reduced the consumption of soft drinks. This stretch especially the April to June quarter is usually the most important period for the nearly Rs 60,000-crore carbonated beverages market in India, the report said.
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