Brands
Coca-Cola aims $2.5 bn target in India by 2020
MUMBAI: Hindustan Coca-Cola Beverages (HCCB) has announced its plan to become a $2.5 billion FMCG company by 2020. The company’s plan includes manufacturing and selling a wide range of beverages and modifications to its operating structure. It is also apportioning more resources to its frontline and field, both financial and human. This includes 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.
HCCB has achieved significant scale in the sale and distribution of an extensive range of juices under the Minute Maid and Maaza brands and also sparkling and dairy products. As a part of its growth plan, the company aims to open 1 million new outlets by 2020. It currently distributes its products in 2 million outlets across 25 states.
The 2020 plan focuses on being consumer and customer centric, driving revenue growth, building a strong and agile system that has efficiency as its core and digitising the enterprise and unlocking the power of associates (employees).
In order to better flex and respond to changing consumer demands, HCCB will now operate under seven zones instead of the current five and will also reorganise 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 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.
“In my time as CEO, I have focused on listening to our employee base,” says Hindustan Coca-Cola Beverages CEO Christina Ruggiero. “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.”
By refining the operating structure and simplifying processes, HCCB solidifies its investment in India’s future with an infrastructure capable of favourable long-term impacts.
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
