Job Cuts At Coca-Cola Bottler HCCB: Profit Slump, Weather, And Strategy Explained
HCCB employs close to 5,000 people across India and operates 15 manufacturing units that bottle and distribute some of the country’s most recognisable beverage brands.
- HCCB plans to reduce staff by approximately 300 employees.
- Job cuts follow a recent leadership transition and restructuring.
- Company cites evolving business needs and profit decline.
Hindustan Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola in India, is preparing to reduce its workforce by around 300 employees as it looks to tighten costs and improve profitability.
The move, first reported by The Economic Times, citing people familiar with the matter, is part of an internal restructuring exercise that has been communicated to staff over the past two weeks.
HCCB employs close to 5,000 people across India and operates 15 manufacturing units that bottle and distribute some of the country’s most recognisable beverage brands, including Coca-Cola, Thums Up, Sprite, Minute Maid and Kinley water. The planned job cuts, while limited in proportion, mark a significant moment for the company as it navigates a challenging operating environment.
What the Layoffs Look Like
Quoting people aware of the discussions, the media report noted that the proposed layoffs will affect roughly 4 to 6 per cent of HCCB’s total workforce. The reductions are spread across multiple functions, including sales, supply chain, distribution and bottling roles at manufacturing plants.
A company spokesperson told The Economic Times that the exercise is part of a routine business review. “Staying in sync with evolving business needs requires us to re-evaluate capabilities, structures, and take corrective actions where necessary,” the spokesperson said. The spokesperson added that the job cuts are “minor in scale and non-disruptive to operations” and that such assessments are conducted periodically to remain competitive and efficient.
A Shift Under New Leadership
The workforce rationalisation comes under new leadership at HCCB. In July this year, the company announced the appointment of Hemant Rupani as its new chief executive officer. Rupani, who previously held a senior leadership role at Mondelez International, took over from outgoing chief executive Juan Pablo Rodriguez.
Industry watchers say leadership transitions often trigger internal reviews, as incoming executives assess organisational structures, costs and long-term strategy. While the company has not directly linked the layoffs to the change at the top, the timing suggests that the new management is keen to realign operations in line with its priorities.
Profits Take a Sharp Hit
The job cuts also come against the backdrop of a steep fall in HCCB’s financial performance. According to regulatory filings accessed by The Economic Times from business intelligence platform Tofler, the company’s net profit plunged 73 per cent to Rs 756.64 crore in FY25. Revenue from operations declined 9 per cent to Rs 12,751.29 crore during the same financial year.
HCCB attributed part of the profit decline to a high base in FY24. In the previous year, the company had sold its bottling operations in several regions, including Rajasthan, Bihar, the north-east and parts of West Bengal. These assets were transferred to existing franchise partners, Moon Beverages, Kandhari Global Beverages and SLMG Beverages, as part of Coca-Cola’s broader franchise-led strategy in India.
How the Bottling Model Shapes the Numbers
Coca-Cola operates in India through a franchise-led model. Under this structure, the company supplies beverage concentrate to bottling partners, who then manufacture, bottle and distribute finished products in their designated territories. As a result, changes in bottling ownership can have a direct impact on reported revenues and profits at the company level.
When HCCB sold certain regional bottling operations in FY24, it recorded a higher base of earnings. The absence of those operations in FY25 meant lower revenues, making the year-on-year comparison less favourable.
Weather, Demand and a Tough Year for Beverages
Beyond restructuring and accounting effects, demand conditions have also weighed on performance. The Economic Times reported that beverage demand remained subdued in FY25 due to unseasonal and heavy rainfall. This proved particularly disruptive because the March-to-September period typically accounts for the bulk of annual sales, driven by summer heat.
The April-to-June quarter is especially critical for soft drink makers, as it generates the largest share of yearly volumes. Irregular weather patterns during these peak months dampened consumption across the industry.
India’s soft drinks market is estimated to be worth nearly Rs 60,000 crore. Lower-than-expected demand during the most important part of the year had a direct impact on sales volumes for beverage companies, including HCCB.
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