SLMG Announces Ambitious Plan to Electrify Coca-Cola Bottling Fleet: A Green Revolution on Wheels

SLMG Beverages, based in Lucknow, will invest about $12 million to acquire 3000 electric vehicles in order to convert its existing ICE retail distribution fleet to EVs.

With orders for 3000 electric three-wheelers, SLMG, a Coca-Cola India bottling supplier based in North India, wants to transition its vehicle distribution fleet from internal combustion engine vehicles to electric vehicles.

Already, e-commerce and last-mile transportation providers are fast converting to EVs, and now retail distribution providers are following suit in the sub-one-tonne market.

SLMG Beverages, based in Lucknow, will invest about $12 million to acquire 3000 electric vehicles in order to convert its existing ICE retail distribution fleet to EVs.

SLMG's decision to electrify its vast vehicle fleet reflects the company's commitment to corporate social responsibility and its dedication to reducing its carbon footprint. The transition to electric vehicles (EVs) will not only substantially decrease greenhouse gas emissions but also set an example for other major corporations looking to align with sustainable practices.

According to company officials, the bottling company intends to cover four North Indian states with a fleet mix of Mahindra e Alfa Cargo electric three-wheelers and Tata Ace EVs.

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According to Vivek Ladhani, Executive Director of SLMG Beverages Pvt. Ltd, the globe is witnessing a paradigm change toward ecologically friendly transportation.

The company has 43 manufacturing facilities in these four states that can produce 29,000 beverage bottles per minute and a retail network that serves over 3.5 million touchpoints.

In order to fully electrify its 5000-core distribution network by 2025, SLMG Group plans to install another 2000 electric three-wheelers and sub-one-ton vehicles.

The Rs 7,000 crore diversified group also have hospitality business interests, with continuous connections with Taj, Vivanta, Hilton, and the Golden Tulip hotel chain. It was also a significant promoter of the now-defunct Air Deccan airline.

Ladhwani claimed that the company wants to purchase 3000 EVs and lease them back to distributors for a minimum 20% downpayment.

He went on to note that the company will also pass the vehicle on to the distributor, who will be able to enjoy a lower total cost of ownership during the life of the vehicle and continue to drive cost reductions after the vehicle's worth has been sweated off.

Ladhwani stated that the Coca-Cola bottling company has been conducting trials with the Tata and Mahindra fleet for over twenty-four months and also aims to electrify its 1.5-tonne and above retail distribution network, for which it is now in conversations with global engine manufacturers.