Archive · 30 May 2025
Jubilant Group Issues Bonds, Halts Dunkin' Donuts Expansion
Imagine a company called Jubilant Bhartia that wants to buy a big part of Coca-Cola's business in India.
To pay for this, they're selling bonds, like IOUs, to investors, aiming to collect around Rs 5,600 crore.
This money will help buy a significant share in the company that bottles and sells Coca-Cola in India.
Meanwhile, Jubilant FoodWorks, the company behind Domino's Pizza, is slowing down the growth of Dunkin' Donuts and Hong's Kitchen to focus on their main businesses like Domino's Pizza, which is doing quite well.
They are focusing on brands that bring in more money and are more popular.
This involves restructuring and potentially selling some smaller brands to concentrate on their more successful ones.
Jubilant Bhartia Group plans a Rs 5,600 crore bond issue to fund the acquisition of a stake in Hindustan Coca-Cola Holdings.
The bond issue will be across two group entities, Jubilant Beverages Ltd and Jubilant Bevco Ltd.
Proceeds will help finance the acquisition of HCCH by the Jubilant Bhartia Group and funds managed by Goldman Sachs.
Jubilant FoodWorks is stalling the expansion of Dunkin' Donuts and Hong's Kitchen.
Domino's Pizza reported strong growth, while Dunkin' Donuts has shut down unprofitable stores.
- Who
- Jubilant Bhartia Group, Jubilant FoodWorks, and various anchor investors.
- What
- Jubilant Bhartia Group is issuing bonds to fund the acquisition of a stake in Hindustan Coca-Cola Holdings.
- When
- The bond issuance opens June 4th; Deal announced in December 2024; Approval received May 1, 2025.
- Where
- India.
- Why
- To finance the acquisition of a stake in Hindustan Coca-Cola Holdings and refocus on core brands.
Jubilant Foodworks Focus
Dunkin' Donuts & Hong's Kitchen Expansion
Expansion Strategy
Jubilant Foodworks Focus
Focusing on existing brands is prioritized over expanding smaller ones.
Dunkin' Donuts & Hong's Kitchen Expansion
Expansion is crucial for growth and market share.
- Bond Issue Amount
- Rs 5,600 crore
- Coca-Cola Stake Acquisition
- 40%
- HCCH Enterprise Value
- Rs 31,250 crore
- Bond Tenures
- Two years, 11 months, and 27 days
- Domino's Pizza Growth
- 12.1% like-for-like YoY (Jan-Mar '25)
- Dunkin' Donuts Stores
- 31 (as of March 31, '25)