NEW DELHI: Ladhani Group, Indiaโs largest Coca-Cola bottler, has announced plans to invest Rs 11,000 crore in the next five years across its business verticals, according to a senior company official. The significant investment will support expansion in its beverage, hospitality, and chemical segments.
The group intends to allocate approximately Rs 8,000 crore to its flagship firm, SLMG Beverages, the largest bottling franchisee for Coca-Cola in India. This investment will help establish new bottling units to expand operations in Uttar Pradesh and newly acquired markets in Bihar.
SLMG Beverages is ranked among the top 15 Coca-Cola bottlers worldwide, with ambitions to break into the top 10 soon. The company is also exploring further franchising opportunities within India and in international markets, said Paritosh Ladhani, Joint Managing Director of Ladhani Group.
The company is setting up a new plant in Buxar, Bihar, with an investment of Rs 1,200 crore and has plans for an additional plant requiring Rs 1,500 crore. Besides these projects, SLMG Beverages aims to expand its existing plants near Lucknow, Amethi, Bareilly, and Ayodhya for both brownfield expansions and new greenfield facilities to meet the growing demand for beverage products.
โSo beverages, I think in five years, it will be a billion dollars (around Rs 8,000 crore),โ Ladhani said.
Hospitality Sector Investment
In addition to its beverage segment, the Lucknow-based conglomerate will invest around Rs 3,000 crore in its hospitality business to double its hotel room capacity over the next five years.
โThe hotel, which is in the pipeline, could be three to five years; we plan to invest about Rs 3,000 crore in the hospitality industry,โ Ladhani stated.
When asked about funding sources for these investments, Ladhani mentioned a combination of debt and internal accruals.
SLMG Beverages currently contributes over 70% of Ladhani Groupโs revenue and has a production capacity of 33,000 bottles per minute. The company expects its revenue to surpass Rs 8,000 crore by FY 2025-26 and aims to double this figure to Rs 20,000 crore within five years.
โWe are looking at doubling our revenue to Rs 20,000 crore. Because the state which we are in, Bihar right now is at Rs 12 lakh crores, and they plan to cross 20 lakh crores. UPโs GDP is currently USD 260 billion; they want to become a trillion-dollar economy in the next five years,โ Ladhani explained.
IPO Plans
Regarding the possibility of an IPO for SLMG Beverages, Ladhani confirmed that it is under consideration but not an immediate priority.
โDefinitely, we have a plan,โ he said, adding, โRight now, the entire board, entire management team is focused on grabbing the opportunities at the market and growing the wayโฆ we have enough internal accruals to invest in this business.โ
The company had acquired rights for the Bihar market from Coca-Colaโs bottling arm, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), last year. This move aligns with Coca-Colaโs global strategy to divest bottling assets as part of its asset-light model.
