SLMG Beverages Announces $1 Billion Expansion to Boost Growth

SLMG Beverages is one of Coca Cola India’s biggest bottling partners, has revealed a massive $1 billion (about ₹8,300 crore) investment plan to grow its business in Uttar Pradesh, Bihar, and Uttarakhand over the next six years. The company believes India’s beverage market will see strong double digit growth, thanks to rising demand and supportive tax reforms.

The company plans to invest about $150 million annually to build new factories, expand warehouse capacity, strengthen its delivery fleet, and increase the number of coolers and fridges at retail outlets. According to Paritosh Ladhani, Joint Managing Director of SLMG Beverages, capital expenditure is essential whether for warehouses, trucks, distributors, or fridges. He noted that India has the potential to grow at high double digits over the next five to seven years, and SLMG aims to capture that opportunity.

Strong Manufacturing Push

Right now, SLMG runs six plants in Uttar Pradesh and one in Bihar. A second plant in Bihar will start operating in January, raising total production capacity from 22,000 bottles per minute to 27,000 bottles per minute. The Bihar facility alone has already attracted investments of more than ₹1,200 crore.

SLMG has 18 large warehouses and is adding three more at a cost of ₹55–60 crore, fully funded by its own earnings. These warehouses, ranging from 1–3 lakh sq. ft., can hold up to one million cases. On the logistics side, SLMG covers 800,000 retail outlets through 3,000 distributors and 2,000 sub distributors. To make operations greener, 30% of its trucks now run on electric power, with a target of 60% in the near future.

Consumer Friendly Pricing

The company has reduced the prices of its water and juice products following GST cuts. A one-litre water bottle is now priced at ₹18 instead of ₹20, while a 600 ml Maaza pack has come down from ₹40 to ₹35. Ladhani explained that when prices decrease, consumers not only buy more but also consume significantly more. SLMG is projecting 13–15% growth for the quarter, with 2–3% of this rise expected to come directly from the GST reduction.

Financial Outlook

Currently, SLMG’s EBITDA margins are between 12–13%. With better efficiency and expansion, it expects strong single digit growth this fiscal year and double digit growth by FY26. Ladhani said that as India’s oldest and largest Coca-Cola bottler, SLMG has always believed in the country’s growth potential. He added that with GST cuts and the company’s expansion strategy, they are confident of sustaining momentum.

To get regular Food Industry updates, feel free to join our WhatsApp group: Joining link