SLMG Beverages, one of Coca-Cola’s anchor bottlers in India, is targeting revenues of about ₹7,000 crore in FY26, backed by expanding manufacturing capacity and a sharper focus on sustainable growth.
The Lucknow-headquartered company, which operates eight modern manufacturing facilities across Uttar Pradesh, Bihar, and Uttarakhand, has been stepping up investments in new plants and distribution networks.
Ladhani acknowledged that EBITDA margins remain under pressure due to ongoing rationalisation and fresh investments but expects profitability to stabilise in the medium term, with margins returning to 18–20%.
Until recently, SLMG was the largest independent Coca-Cola bottler in India. That changed after the Bhartias of Jubilant Group acquired a 40% stake in Hindustan Coca-Cola Beverages (HCCB), Coca-Cola India’s wholly owned bottling arm, giving them control of the southern and western markets. SLMG continues to serve the key markets of Uttar Pradesh, Bihar, and Uttarakhand.
Unlike PepsiCo, which relies entirely on its listed bottler Varun Beverages, Coca-Cola still works with 15 independent bottlers in India. None of them are listed. Asked if SLMG would consider going public, Ladhani said the company may explore a listing in the future, subject to Coca-Cola’s approval.
Long runway for growth
SLMG caters to nearly 400 million consumers — almost one-third of India’s population — but per capita consumption in its markets remains just 25-30 bottles annually, compared to 400–500 in developed economies. Even neighbouring Pakistan and Bangladesh report higher figures.
“This gives us a massive runway for growth. Our target is to grow at 20% annually, almost three times India’s GDP growth rate. Even during COVID and extreme rainfall seasons, we have never reported single-digit growth,” Ladhani said.
Sustainability at the core
With water scarcity emerging as a key challenge for the beverage industry, the company is tying future growth to sustainable expansion. “Coca-Cola’s vision is to return to nature everything we draw from it. We are investing heavily in rainwater harvesting, pond revival, and recharge shafts,” Ladhani said, adding that water management will remain at the heart of capex plans.
Competition in the Cola Market
While PepsiCo has consolidated its India operations under a single listed bottler, Varun Beverages, Coca-Cola continues to work with multiple regional partners. At present, there are around 15 bottlers for Coca-Cola in India, though the number has been shrinking.
According to Ladhani, competition in the beverage industry is no longer limited to the Coke–Pepsi rivalry. “The market is evolving. Growth is happening in tea, coffee, coconut water, and fruit-based drinks. Every state has unique produce—like litchi in Bihar or mosambi in Maharashtra—and with government subsidies encouraging commercialization of these fruits, the category will only expand,” he said.