Varun Beverages is betting big on growth amid rising competition
Subscribe to enjoy similar stories. Varun Beverages Ltd’s (VBL) strategy is clear: aim for double-digit volume growth in India, focus on international expansion, and strengthen the distribution network. Despite facing new competition from Campa Cola and the complexities of global markets, management remains confident amid strong demand tailwinds and robust execution.
The numbers support this optimism. The company, which follows January-December financial year, saw 11.4% organic growth in its India volumes in 2024. VBL, one of the largest franchisee of PepsiCo in the world (outside the US), appears to want to avoid price wars and boost its retail reach.
With just four million of India’s 12 million retail outlets tapped, increasing coverage by 10% annually offers significant headroom for growth. The plan is to expand presence, strengthen pricing power, and stay ahead of competition. Capacity expansion is also in full swing.
After boosting capacity by 45% from 2022 to 2024, VBL plans to add another 25% by March 2025 with four new plants. This positions the company well for peak season demand. Sting, the company’s energy drink, remains a star performer, contributing 15% to total volumes—an impressive feat in a category still underpenetrated in India.
The launch of Sting Gold as a permanent variant could add more spark to this growth. Internationally, VBL’s story is mixed. Overall international volumes surged 12.5% in 2024 and 125.4% in Q4CY24 on a year-on-year basis, thanks to new markets like South Africa and the Democratic Republic of Congo (DRC).
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