Juice and water get cheaper as Coca-Cola bottler passes on GST benefit; targets $2.5 billion turnover by 2031

India’s largest independent Coca-Cola bottler, SLMG Beverages Pvt. Ltd, has announced a price reduction across its juice and packaged water portfolio, following the government’s move to slash GST rates.

“Starting September 22, GST on juices has come down from 12% to 5%, and on water and sparkling water from 18% to 5%. We are passing on the entire benefit to the consumers,” said Paritosh Ladhani, joint managing director, SLMG Beverages. “For example, an MRP ₹20 bottle now costs ₹18, and a ₹99 juice pack is down to ₹95. This is one of the most significant reforms in recent years and we are thankful to the government for this move.”

Ladhani called the GST cut a demand booster, particularly during the festive season. “We expect consumption to increase by 2–3% on a conservative basis. More than just affordability, it’s about consumer sentiment. People are upbeat when prices drop, and that drives demand further,” he explained.

The impact, however, is limited to about 30% of SLMG’s portfolio (juices and water), while 70% of its beverages continue under the same tax regime. The company has already informed its 4,000 distributors and retail partners of the new pricing. “We have ensured a smooth transition, even for pipeline stocks, with state approvals allowing billing at revised GST rates irrespective of printed MRP,” Ladhani said.

SLMG Beverages is a flagship company of the Ladhani Group, and serves as the conglomerate’s core beverage arm.

The Group ended FY25 with a gross turnover of about ₹8,500 crore, up from ₹8,000 crore a year earlier. For calendar year 2025, the company is aiming for overall revenues of ₹10,500 crore, with the beverage business accounting for nearly ₹8,500 crore. The company has set an ambitious growth trajectory, backed by a planned ₹8,000 crore investment in its beverage business and ₹11,000 crore including hospitality over the next six years.

The company's target is clear: by 2031, they want to scale the beverage business to $2 billion and the overall group turnover to $2.5 billion.

He added that despite weather disruptions and geopolitical headwinds that slowed growth this year to mid-single digits, SLMG expects to close 2025 on a double-digit note, with strong festive demand and the GST-driven momentum. “Quarter four should see high double-digit growth, around 14–15%, helping us end the year in double digits,” he said.

The GST reduction, Ladhani believes, marks a turning point for the sector. “Consumers have always experienced higher taxes; this is the first time they are experiencing a lower tax rate. It’s a bold reform, and we are confident it will create positive momentum not just for us but for the entire industry.”