Coca-Cola India Bottler HCCB Plans 300 Job Cuts Amid Profit Slump

Hindustan Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola in India, is planning to lay off around 300 employees as part of an internal restructuring exercise aimed at improving profitability and streamlining operations, according to a report by The Economic Times.

The decision has been communicated internally over the past two weeks. HCCB currently employs around 5,000 people across the country and operates 15 manufacturing plants, which bottle and distribute brands such as Coca-Cola, Thums Up, Sprite, Minute Maid and Kinley.

A company spokesperson said the move was part of a routine review of business needs. “Staying aligned with evolving market conditions requires us to reassess capabilities and organisational structures from time to time,” the spokesperson said, adding that the job cuts were limited in scale and would not disrupt operations.

People familiar with the matter said the workforce reduction amounts to roughly 4–6 per cent of HCCB’s total employee base. The layoffs are spread across departments including sales, supply chain, distribution and bottling operations. Those cited requested anonymity as they were not authorised to comment publicly.

The restructuring comes under new leadership at HCCB. In July, the company appointed Hemant Rupani as its new chief executive officer. Rupani, who previously held senior roles at Mondelez International, succeeded Juan Pablo Rodriguez.

The job cuts also follow a sharp decline in the company’s financial performance. Regulatory filings accessed via business intelligence platform Tofler show that HCCB’s net profit fell 73 per cent to Rs 756.64 crore in FY25, while revenue from operations declined 9 per cent to Rs 12,751.29 crore.

The company attributed the drop partly to a high base effect from FY24, when it sold bottling operations in regions including Rajasthan, Bihar, the North-East and parts of West Bengal. These assets were transferred to franchise partners Moon Beverages, Kandhari Global Beverages and SLMG Beverages.

HCCB operates under Coca-Cola’s franchise-led model, where the parent company supplies beverage concentrate while bottlers handle manufacturing and distribution. Changes in bottling ownership directly influence reported revenues and profits.

Demand conditions also remained challenging during FY25. Unseasonal and heavy rainfall affected beverage consumption during the crucial summer months between March and September. The April–June quarter, which typically accounts for the largest share of annual sales, saw weaker-than-expected demand, impacting overall volumes.

India’s soft drinks market is estimated at nearly Rs 60,000 crore, making seasonal fluctuations a key risk factor for beverage companies operating in the country.