Hindustan Coca-Cola eyes USD 2.5 billion in revenue by 2020

Hindustan Coca-Cola Beverages (HCCB), the largest bottling unit of US-based beverages maker Coca-Cola in India, said it aimed to reach USD 2.5 billion (approximately Rs 16,127-crore) in revenue by 2020.

30 Nov 2017 | By WhatPackaging? Team

For the year ended 31 March 2017, revenue stood at Rs 9,472-crore, the firm said in a statement. In order to achieve the target, HCCB will manufacture and sell a wide range of beverages from value to premium and modify its operating structure, according to the statement.

“The company is also apportioning more resources to its frontline and field—both financial and human. This includes the setting up of the premium division to service customer requirements around niche and premium beverages—smartwater, frozen fruit desserts, mixers and tonic water etc, and amalgamating the existing Alternate Beverages Division to the mainstream distribution system,” the statement added.

HCCB aims to open one million new outlets by 2020. It currently distributes its products in two million outlets across 25 states.

HCCB will now operate under seven zones instead of the current five and will also re-organise its corporate centre resources to serve in the zones and factories. The company will have a leaner corporate office and a much strengthened sales and supply chain organisation, thereby creating several hundred new jobs.

“HCCB expects to fill most of these new jobs from within the organisation. The re-organisation will however make a few existing jobs redundant, the incumbents of which will be encouraged to apply for the new jobs that have been created,” the company said.

“It was very clear from our research, conversations and market data that today we are not structured in a way that allows us to fully leverage our scale and market capabilities. Changes of this nature take time to seep in, but our associates are committed to ensuring that HCCB is key fixture in India’s consumer landscape and delivering the growth that we know is possible in India,” said Christina Ruggiero, chief executive of Hindustan Coca-Cola.

Christina Ruggiero, chief executive of Hindustan Coca-Cola

Ruggiero joined Hindustan Coca-Cola in May. Most recently, she served as chief procurement officer for the Coca-Cola System within North America, and president and CEO for Coca-Cola Bottlers’ Sales & Services, an organisation that aggregates and optimises supplier and customer-related activities for the US bottling franchise network.

Ruggiero is the first woman to head Hindustan Coca-Cola that operates 21 bottling plants and also sources from and supports 11 contract packers’ plants.