Coca-Cola India’s bottling arm, Hindustan Coca-Cola Beverages (HCCB), is planning to cut around 300 jobs as part of an internal restructuring aimed at improving profits and making operations more efficient. The development was reported by The Economic Times, citing people familiar with the matter.
The decision was shared internally over the past two weeks. HCCB employs nearly 5000 people across India and runs 15 manufacturing plants. These facilities bottle and distribute popular beverage brands such as Coca-Cola, Thums Up, Sprite, Minute Maid and Kinley water.
Job cuts part of routine business review
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 stay competitive and efficient.
People aware of the matter said the layoffs will impact about 4-6% of the total workforce. The job cuts are spread across several departments, including sales, supply chain, distribution and bottling roles at manufacturing plants. The sources spoke on the condition of anonymity as they were not authorised to comment publicly.
The restructuring is taking place under new leadership at HCCB. In July this year, the company appointed Hemant Rupani as its new chief executive officer. Rupani previously held a senior leadership role at Mondelez International and replaced outgoing CEO Juan Pablo Rodriguez.
Profit slump and weak demand add pressure
The layoffs come at a time when HCCB has reported a sharp drop in profits. According to regulatory filings accessed by The Economic Times via business intelligence platform Tofler, the company’s net profit fell 73% to Rs 756.64 crore in FY25. Revenue from operations also declined 9% to Rs 12,751.29 crore during the same period.
The company partly blamed the profit drop on a high base in FY24, when it sold its bottling operations in several regions, including Rajasthan, Bihar, the north-east and parts of West Bengal. These assets were sold to franchise partners Moon Beverages, Kandhari Global Beverages and SLMG Beverages.
Coca-Cola follows a franchise-led model in India, where bottling partners manufacture and distribute beverages in specific territories. Changes in bottling ownership can therefore affect reported revenues and profits.
Demand conditions also remained challenging during FY25. Unseasonal and heavy rainfall affected beverage sales, especially during the March-September period, which is usually the peak summer season. The April-June quarter, the most important period for soft drink sales, saw weaker demand. India’s soft drinks market is estimated to be worth nearly Rs 60,000 crore and lower sales during peak months directly impacted beverage makers, including HCCB.
