HCCB Announces Growth Strategy Aimed at Continuing to be One of India's Top 5 FMCG CompanyHindustan Coca Cola Beverages Pvt. Ltd. (6:35PM)
Business Wire India
Hindustan Coca-Cola Beverages (HCCB) Pvt. Ltd announced today, its plans to become a USD 2.5 BN FMCG company by 2020. Plans include manufacturing and selling a wide range of beverages – from premium to value – and modifications to its operating structure. The Company is also apportioning more resources to its frontline and field – both financial and human. This includes the 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 Company's 2020 plans focus on the following key priorities:
Being consumer and customer centric
Driving revenue growth
Building a strong and agile system that has efficiency as its core
Digitizing the enterprise
Unlocking the power of associates (employees)
In order to better flex and respond to changing consumer demands, HCCB will now operate under 7 zones instead of the current 5 and will also re-organise its corporate center resources to serve in the Zones and factories. The Company will have a leaner corporate office and a much strengthened sales and supply chain organization, thereby creating several hundred new jobs. HCCB expects to fill most of these new jobs from within the organization. The re-organization 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. No additional details are available at this time, since this exercise is yet to begin.
"In my time as CEO, I have focused on listening to our employee base," said Christina Ruggiero, CEO, Hindustan Coca-Cola Beverages Pvt Ltd. "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 favorable long-term impacts.
About Hindustan Coca-Cola Beverages Pvt Ltd
Hindustan Coca-Cola Beverages Pvt. Ltd, is one of India's largest FMCG manufacturing and distribution companies. It is responsible for the manufacture, package, sale and distribution of beverages under the trademarks of The Coca-Cola Company. The Company owns and operates 21 factories. It also sources from and supports 11 contract packers' plants. A network of 4,000 distributors and 2 million retail outlets distribute the high quality, great tasting beverages manufactured by Hindustan Coca-Cola Beverages. For the financial year ending March 2017, HCCB reported revenue numbers of Rs. 9,472 crores.
The Company has always placed high value on good citizenship and to that end, is supporting communities by enhancing skills of rural youth through Career Development Centre, improving the lives of communities around its bottling plant by very focused intervention in the areas of access to safe drinking water, sanitation and promoting sustainable agriculture through Integrated Watershed Management Projects under Public-Private-Community partnerships.
Bengaluru, Karnataka, India