New Delhi: SLMG Beverages, the largest bottler of Coca-Cola, expects a high single-digit sales growth in FY26 despite facing headwinds in the June quarter due to unseasonal rains, and hopes its gross revenue to cross Rs 9,000 crore, said a top company official on Monday.
The beverage industry faced disruption in sales in the June quarter, the peak summer season, due to unseasonal rains and early arrivals of monsoon. However, SLMG expects that occasions like festivals and GST concession on its non-fizz beverage portfolio will help to compensate overall.
“The June quarter was not as per our expectation. Moreover, there were geopolitical issues also (Indo-Pak war), and in the Q3 (September) quarter, we experienced 35 to 40 per cent more rainfall. Still, SLMG expects medium to high single-digit growth as we expect very good growth in December quarter. We may even try to double-digit growth,” SLMG Beverages Joint Managing Director Paritosh Ladhani told PTI.
SLMG Beverages has extended the GST benefits to consumers, he said, adding that its non-aerated drinks portfolio, which contributes around 30 per cent of the sales, has become more affordable.
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“Now I look forward to a great quarter going forward,” Ladhani said, adding that even the sales of fizz-based drinks will increase with the people having discretionary money to spend. We are looking at very good growth numbers going forward. The market will grow,” he said.
SLMG Beverages, which is among the top 15 globally for Coca-Cola, has plans to invest around Rs 8,000 crore in the next six years on expansion, and the funding would come from a mix of internal accruals and debts. The expansion plan includes opening new units in UP and in newly acquired markets of Bihar.
When asked about mid-term outlook, Ladhani said: “We plan to cross our gross turnover by Rs 20,000 crore in the next five to six years. It will eventually come.”
About IPO plans, Ladhani hinted that currently it would focus on strengthening the company and will consider an initial public offering only after achieving a desired scale.
The company, which has a current installed capacity of 22,000 BPM (bottles per minute), expects it to increase to 27,000 BPM by the end of this year, after commissioning of a unit in Buxer, Bihar, where it is investing around Rs 1,500 crore on a greenfield plant.
Moreover, it has also announced a new greenfield plant at Gorakhpur, UP and some other places as SLMG “plans to double it in the next five years. That is where the investment will go,” said Ladhani, adding, “We are very bullish”.
SLMG Beverages will also invest a substantial portion on market development and infrastructure, such as coolers in the market, innovations, warehouses, fleet, besides capacity enhancement of existing plants and new greenfield plants.
“We will be investing 65 to 70 per cent (of Rs 8,000 crore) on plants and capacities, and the remaining will be for market development, coolers, capability, warehousing, new product development,” he said.
SLMG Beverages is a part of the Rs 10,000-crore Ladhani Group, which has a play in hospitality, real estate, and energy, among others. Its 70 per cent revenue comes from bottling business.
In the hospitality business also, Ladhani group has plans to invest around Rs 3,000 crore in the next six-seven years.
“So currently we are at 550 keys and, after the Taj Gateway comes in, we will be at 700 keys plus,” said Ladhani, adding: “We plan to become a 1,500 room. So it could happen in five to six years, depending on the hospitality industry.”
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