Varun Beverages: India's bottling baron Ravi Jaipuria has found more fizz this year
Varun Beverages Ltd, the manufacturer, bottler and distributor of PepsiCo products, which helps the American company stay nimble by keeping it free of burdens that come with manufacturing and selling FMCG goods. Steady growth of Varun Beverages in recent years, despite Covid disruptions, has made it a darling of the markets.
Since 1991, when PepsiCo entered India and Varun Beverages started working with it, the company has come a long way to bottle all the Pepsi that India drinks today, growing by acquiring other bottlers as well as bagging more territories from PepsiCo. Today, it has franchisees for various PepsiCo products across 27 states and seven Union Territories in India and is responsible for nearly 90% beverage sales volume of PepsiCo India.
India is the largest market and contributes nearly 80% to its revenues.
PepsiCo's carbonated soft drinks (CSD) brands produced and sold by Varun Beverages include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo's non-carbonated beverages (NCBs) brands produced and sold by the company include Tropicana Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina.
It also has the PepsiCo franchise for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe. It has over 30 manufacturing units in India.
Total revenues of Varun Beverages, which follows the calendar year as its financial year, have grown from Rs 5,127 crore in FY16 to Rs 13,211 crore in FY22.
Profit after tax has grown from Rs 293 crore to Rs 1,497 crore in the same period while net profit margin has grown from 5.73% to 11.36%.
From one bottling plant to
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