SLMG Beverages, Coca-Cola’s largest independent bottler in India, is aiming to grow at around 10-11% this financial year (FY26) on the back of GST cuts in its non-fizzy portfolio and festive season consumption, joint MD Paritosh Ladhani said in an interaction with FE. GST rates on bottled water and juices have been reduced to 5% under the next-gen reforms, affecting about 30% of SLMG Beverages’ portfolio.
Expansion and investment plans for long-term growth
The company closed FY25 with gross turnover of Rs 8,000 crore and is aiming for a gross turnover of around Rs 9,000 crore in FY26. In the next five to six years, the company is looking to more than double topline to Rs 20,000 crore, by expanding into new territories and tapping more consumers with affordable products. SLMG Beverages has bottling operations in Uttar Pradesh (UP), Bihar, Uttarakhand and parts of Madhya Pradesh. SLMG Beverages operates eight plants, including six in UP and two in Bihar.
“While the first half of the current financial year has been challenging on account of unseasonal rains, the second half is likely to be better due to the GST cuts. This will certainly give a boost to consumption,” Ladhani said.
The company, which is among Coca-Cola‘s top 15 bottlers globally, has also lined up investments of Rs 8,000 crore over the next five years, aiming to get into the top 10 list of global bottlers by then. 65-70% of this investment will be used for capacity expansion. The rest will be utilised for market development, including developing new products, Ladhani said. The capacity expansion plan includes opening new units in UP, notably, Gorakhpur, and in Bihar, where the company is setting up a new unit in Buxar.
IPO and funding strategy
The company is also looking to fund the investment into its business through internal accruals and debt. Ladhani also said that the company may look at an initial public offering in the coming years without specifying a timeline. “The aim would be to scale up before we look at an IPO,” he said.
Ladhani also says that the company may look at expanding its bottling operations into international markets if given an opportunity. “While our first priority would be to expand in India and tap into the growth potential here, we are not closed to the idea of expanding into foreign markets if given an opportunity,” he added.