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SLMG Beverages has closed 2025 with revenues exceeding Rs 8,000 crore, driven by sustained demand across beverage categories. Building on this momentum, the company is targeting the Rs 10,000 crore revenue milestone in 2026. Growth has been supported by phased capacity additions, a strong distribution network, and highly automated manufacturing operations. SLMG is also evaluating long-term capacity expansion, including a large integrated manufacturing facility currently at the planning stage, with a formal announcement expected in February. Paritosh Ladhani, Joint Managing Director, SLMG Beverages and Sincere Developers reveals more in an interaction with NUFFOODS Spectrum about the company’s future plans. Edited excerpts:
How fast-growing is India’s beverage packaging industry?
If we look at the beverage packaging sector in India, it is going through one of its dynamic growth phases, and this is due to rising beverage consumption, urbanisation, and shifting consumer preferences. Due to these factors, the industry is today growing at a compound annual growth rate ranging from 6–7 per cent to nearly 15 per cent, depending on the segment.
According to other estimates, the market is expected to reach $86 billion by 2029.
This change is particularly marked by a visible shift in packaging formats. Consumers are increasingly preferring convenience-led options such as PET bottles, cans, and tetra packs, alongside growing demand for sustainable and recyclable materials. This has accelerated innovation across the value chain, from packaging design and materials to manufacturing technology. More importantly, for beverage companies like ours, packaging is no longer just a container, it’s an integral part of product quality, brand experience, and sustainability commitment.
What are the key challenges for the beverage packaging industry in India?
While the growth story is compelling, the industry also faces several structural and operational challenges. Rising raw material costs, especially for packaging inputs, continue to put pressure on margins. Sustainability requirements are becoming more
stringent, with evolving regulations around single-use plastics and extended producer responsibility (EPR), which demand both compliance and innovation. Another challenge is waste management infrastructure. Despite strong intent, recycling systems in many parts of the country are still fragmented, leading to inefficiencies and contamination in recyclable streams. At the same time, companies must invest heavily in advanced technologies to support recyclable and eco-friendly packaging formats such as aluminium cans or recycled PET.
SLMG Beverages crossed the Rs 8,000 crore revenue milestone in 2025. What were the key drivers behind this growth?
Crossing the Rs 8,000 crore revenue mark was a significant milestone for us and reflected several years of consistent, disciplined execution. The growth was driven by steady demand across categories throughout the year, supported by strong fundamentals in our core markets. A key contributor has been our expansive and efficient distribution network. Today, we serve
close to 25 per cent of India’s population across Uttar Pradesh, Uttarakhand, parts of Madhya Pradesh, and Bihar, reaching over 1.2 million outlets across channels, from modern trade and quick commerce to traditional retail and HoReCa. On the manufacturing side, phased capacity expansion across our eight state-of-the-art plants allowed us to scale volumes efficiently while maintaining quality and cost discipline.
Our diversified product portfolio from sparkling beverages like Thums Up, Sprite, Coca-Cola, and RimZim to juices, water, and nutrition-led offerings also helped us cater to multiple consumption occasions.
Importantly, this growth was not driven by short-term spikes but by sustained volume expansion, which gives us confidence as we work towards crossing the Rs 10,000 crore revenue milestone in 2026.
Which are some of the technology innovations being implemented at your bottling facilities across Uttar Pradesh and Bihar?
Technology is at the core of how we operate and scale. SLMG Beverages runs one of the most digitally integrated bottling operations in the country, across Uttar Pradesh and Bihar. We have implemented world-first Manufacturing Execution Systems (MES) in partnership with Schneider Electric, enabling real-time monitoring, higher efficiency, and better decision-making on the shop floor.
We have also deployed AI-powered quality control systems that deliver near-perfect defect detection, ensuring consistency and product integrity. Our IT backbone is powered by Microsoft Dynamics 365, hosted on Microsoft Azure, integrating operations across manufacturing, supply chain, finance, and distribution.
We use advanced KHS InnoPET TriBlock lines with Plasmax technology for improved bottle preservation, along with SCADA systems for enhanced automation. Beyond factories, our retailer-facing app, Coke Buddy, and logistics tools help create a data-driven, responsive ecosystem from production to last-mile delivery.
Are there plans to set up manufacturing facilities in other locations?
Yes, expansion is very much on the agenda. We recently completed a major investment of around Rs1,200 crore in Bihar and have already begun groundwork for a new facility in Gorakhpur. Additionally, we are planning a large integrated
manufacturing facility spread across nearly 70 acres, currently at the planning stage, aimed at meeting our long-term requirements rather than immediate capacity needs. A formal announcement on this is expected later this year.
Over the next five to six years, we intend to set up four to five additional plants across high-growth regions such as Uttar Pradesh, Bihar, and Uttarakhand.
Our approach is to create specialised, highly automated facilities that deliver cost efficiency while supporting scale. As volumes grow, we are also exploring the use of AI and advanced analytics to optimise logistics and fleet management.
Do you plan to introduce new products in the Indian market?
Absolutely. Innovation and portfolio expansion are central to our growth strategy. We are a complete portfolio company, catering to evolving consumer preferences across taste, health, and functionality. From Diet Coke and Sprite Zero to regional favourites like RimZim, and from juices like Maaza and Minute Maid to hydration brands such as Kinley and Smartwater, our
portfolio spans the spectrum.
What sustainability initiatives are being implemented across your facilities?
Sustainability is deeply embedded in our business strategy. We are committed to creating long-term value while responding to environmental and social challenges. This year alone, we are investing close to Rs 100 crore in sustainability initiatives. Over 90 per cent of our fuel consumption now comes from biofuels, and 19 per cent of our energy requirements are met through renewable sources.
On the water front, we have adopted over 110 water bodies and replenished more than 3,500 million litres of water, achieving a water replenishment rate exceeding 100 per cent.
What are your investment plans for the next five years? Are there any plans for an IPO?
We have outlined a $1 billion investment plan over the next five to six years, focused on capacity expansion, warehousing, logistics, and technology. In the near term, we are investing Rs 200–300 crore annually in fleet expansion, new coolers, and
strengthening route-to-market infrastructure. Our capacity is expected to scale from 22,000 bottles per minute currently to around 32,000 bottles per minute by next year. An IPO is certainly an option in the future, but we believe that in a growing market, value creation improves with scale and consistency. As we work towards longer-term revenue milestones including a Rs 20,000 crore target over the next five to six years we want to ensure the company is fully prepared to unlock maximum value when the time is right.
Sanjiv Das
sanjiv.das@mmactiv.com