Hindustan Coca Cola Holdings (HCCH) has plans to make a fresh investment of US$120m in its bottling subsidiary, Hindustan Coca Cola Beverages (HCCB). The move will increase HCCH's holding in its bottling arm to 100% from the current 50%.

The fresh investment will come partly from the US parent as foreign investment. The rest may be raised as debt. Coca Cola India's PR department said that the investment will not only help the company increase its penetration in the urban and rural markets, but will also help diversify its range of beverages.

Currently, the HCCB-owned bottling operations work in tandem with 23 other bottling operations owned by 15 different franchisees. 

The Indian bottling arm plans to issue additional equity shares to HCCB.