Coca-Cola is reportedly exploring the possibility of taking its Indian bottling unit public in a deal that could raise around US$1 billion, Bloomberg News reported on Friday, citing sources familiar with the matter.
The company has reportedly held preliminary discussions with bankers about a potential listing of Hindustan Coca-Cola Beverages, which could value the unit at approximately US$10 billion.
Coca-Cola and Hindustan Coca-Cola Beverages did not immediately respond to requests for comment. The move comes amid increasing competition in the Indian beverage market, notably from Reliance’s consumer products brand, Campa Cola.
India has recently seen a surge in global companies listing their local subsidiaries. For instance, LG Electronics India, the consumer appliance arm of the South Korean firm, launched a blockbuster US$13 billion IPO this week.
The potential Coca-Cola unit listing are still in the early stages, and no bankers have been formally appointed yet. If the plan moves forward, the IPO could take place next year.
