Packaging Costs May Push Coca-Cola Bottler SLMG Toward Price Hikes

SLMG Beverages, the largest bottler for Coca-Cola in India, has indicated that it may consider raising prices if escalating packaging costs linked to the ongoing Middle East conflict persist. According to Deputy CEO Rahul Kumar, the war has driven up the cost of essential packaging materials such as plastic bottles, caps, labels, and cardboard boxes. While some packaged water manufacturers have already implemented price hikes, SLMG is still evaluating its options based on market conditions, competitor strategies, and consumer response.

Despite the cost pressures, Kumar noted that price increases in India’s highly competitive soft drink market are not straightforward. The sector has witnessed intensified competition, particularly after Reliance Industries revived the Campa cola brand in 2023, sparking a price war. With limited room for across-the-board price hikes and no major increases in the past 7–8 years, SLMG plans to review its pricing strategy in April while closely monitoring industry dynamics.

At the same time, SLMG is focusing on expansion to capitalize on India’s growing beverage market, which is projected to reach $40 billion by 2030. The company plans to invest between ₹10 billion and ₹12 billion in each of four new plants over the next five years. With strong financial growth—reporting a 49% rise in sales to ₹67.73 billion and a 76% jump in net profit to ₹2.06 billion in FY2025—SLMG aims to achieve ₹100 billion in net revenue by 2026–27, driven by expansion into emerging markets like Bihar and Uttar Pradesh.

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