What’s the first drink that comes to your mind when you are packing for your quick trek? Pepsi, Mirinda, Mountain Dew, 7UP? The best summer quenchers. But have you ever taken a minute to think about the minds behind these drinks? They’re no ordinary beverages; they’re the ones that always leave us wanting more! From the classic cola kick of Pepsi to the tantalising tang of Mirinda, from the electrifying energy of Gatorade to the soothing sip of Lipton Ice Tea, Varun Beverages has mastered the art of keeping the Indian palate not just satisfied but begging for more.
So, join us on a journey through the fizzy, flavorful world of Varun Beverages, where every sip is a celebration of taste and tradition.
History of Varun Beverages: Sipping the Magic of Pepsi, Mirinda, and More
Varun Beverages has established itself as a key player in the beverage industry. Currently, it serves PepsiCo beverages to 1/6th of the world’s population.
With over 3.8 million outlets and 40 manufacturing facilities in 6 countries, it has become a prominent name in the market.
However, its journey began back in the 1990s.
1990s
Varun Beverages was born as a public limited company back in 1995.
In 1996, VBL kickstarted its operations in Jaipur.
Following its growth journey, it planted its seeds of ambition in Alwar, Jodhpur, and Kosi in 1999.
2000s
As the new millennium dawned, VBL contuinued on a transformative journey.
In 2004, the company underwent a significant evolution with the merger of DBL, marking a pivotal moment in its history.
Then, in 2012, VBIL joined forces with VBL, shaping a stronger and more dynamic entity.
With each merger, the company’s footprint expanded, setting the stage for monumental growth.
In 2013, VBL acquired the business of manufacturing and marketing soft drink beverages in Delhi, India.
This further expanded its market reach.
In 2015, the company made strategic moves to solidify its market position.
It acquired Pepsi India’s business in several Indian states, including Uttar Pradesh, Uttarakhand, Himachal Pradesh, Haryana, and the Union Territory of Chandigarh.
Additionally, it acquired businesses in Bazpur, Jainpur, Satharia, Panipat, and Punjab.
From the streets of Uttar Pradesh to the stock exchanges of India, Varun Beverages’ journey was bubbling with success!
In 2016, VBL achieved a significant milestone by successfully listing on the NSE & BSE.
In 2017, Varun Beverages expanded its reach even further, snapping up PepsiCo India’s franchised territories in Odisha and parts of Madhya Pradesh.
With new manufacturing units in tow, it solidified its grip on crucial regions.
The momentum didn’t halt in 2018.
Varun Beverages sharpened its strategy.
They set up a fresh production hub in Zimbabwe and inked a crucial deal to distribute the Tropicana range in North and East India.
They sealed the deal for PepsiCo India’s franchised territories in Chhattisgarh, Bihar, and Jharkhand.
By 2019, it was on a roll.
The company made substantial acquisitions, obtaining West and South India sub-territories from PepsiCo.
Additionally, they acquired franchised sub-territories in Maharashtra, Karnataka, and Madhya Pradesh.
Their commitment to expansion and growth was crystal clear.
The 2020s and Present
Fast forward to the era of the 2020s!
It has become a powerhouse in the beverage industry.
From strategic acquisitions to pioneering agreements, the company has left an indelible mark on the global stage.
In 2022, Varun Beverages began producing PepsiCo’s Kurkure Puffcorn at the Kosi plant.
Expanding further, they ventured into territories like Morocco and the Democratic Republic of Congo.
With each milestone, the company continues to write its compelling narrative of success!
| Year | Key Milestones |
| 1995 | – Varun Beverages established as a public limited company |
| 1996 | – Operations commenced in Jaipur |
| 1999 | – Expansion into Alwar, Jodhpur, and Kosi |
| 2004 | – Merger with DBL |
| 2012 | – Merger with VBIL |
| 2013 | – Acquisition of soft drink manufacturing business in Delhi |
| 2015 | – Acquisition of Pepsi India’s business in multiple Indian states- Acquisition of businesses in Bazpur, Jainpur, Satharia, Panipat, and Punjab |
| 2016 | – Successfully listed on NSE & BSE |
| 2017 | – Acquisition of PepsiCo India’s franchised territories in Odisha and parts of Madhya Pradesh |
| 2018 | – Establishment of production facility in ZimbabweStrategic distribution partnership for Tropicana range in North and East India- Acquisition of PepsiCo India’s franchised territories in Chhattisgarh, Bihar, and Jharkhand |
| 2019 | – Acquisition of West and South India sub-territories from PepsiCo-Acquisition of franchised sub-territories in Maharashtra, Karnataka, and Madhya Pradesh |
| 2022 | – Commencement of Kurkure Puffcorn production at Kosi plant – Distribution agreement for Lays, Doritos, and Cheetos in Morocco- Establishment of Varun Beverages RDC SAS in the Democratic Republic of Congo |
Varun Beverages Ltd Introduction
Varun Beverages Limited (VBL) ranks 3rd among India’s leading FMCG players.
It operates in 6 countries across the Indian sub-continent and Africa, producing popular brands like Pepsi, Mirinda, 7up, and others.
With over 10,000 employees embodying the #HungryForMore spirit, VBL stands as PepsiCo’s second-largest franchisee partner globally.
VBL holds franchises for PepsiCo products across 27 Indian States and 7 Union Territories, as well as in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.
Led by Chairman Mr. Ravi Jaipuria, VBL is part of the RJ Corp group, known for its diversified business interests.Â
The succession plan for RJ Corp has been solidified with the founder and chairman, Ravi Jaipuria, entrusting strategic leadership roles to his children. Varun oversees the food and beverages sector, and Devyani(daughter) manages healthcare and education. This strategic move ensures continuity and future growth, with family members actively involved in shaping the company’s direction.
Varun Beverages Limited| 3rd Largest FMCG in India
- Varun Beverages Owner:
Mr. Ravi Jaipuria - Varun Beverages Share Price:
₹ 1,405 - Varun Beverages Market Cap:
₹ 1,82,551 Cr. - Varun Beverages Net Worth– As of 2022, the net worth of Varun Beverages Limited was over 52 billion Indian rupees
- Varun Beverages Products:
- Pepsi
- Pepsi Black
- Mountain Dew
- Sting
- 7up
- Mirinda
- Slice
- Tropicana
- Aquafina
- Gatorade
- Lipton Ice Tea
- Cream Bell
- Varun Beverages Subsidiaries:
- VARUN BEVERAGES (NEPAL) PRIVATE LIMITED
- VARUN BEVERAGES LANKA (PRIVATE) LIMITED
- OLE SPRING BOTTLERS PRIVATE LIMITED (STEP-DOWN SUBSIDIARY)
- VARUN BEVERAGES MOROCCO S.A.
- VARUN BEVERAGES (ZAMBIA) LIMITED
- VARUN BEVERAGES (ZIMBABWE) (PRIVATE) LIMITED
- VARUN BEVERAGES RDC SAS
- VARUN BEVERAGES INTERNATIONAL DMCC
- VARUN BEVERAGES SOUTH AFRICA (PTY) LTD
- LUNARMECH TECHNOLOGIES PRIVATE LIMITED
7. Shareholding Pattern:
Over the past few years, the shareholding pattern of Varun Beverages has seen a consistent trend.
The promoters have maintained a dominant stake, gradually reducing from 65.82% in 2021 to 62.91% in March 2024.
Foreign Institutional Investors (FIIs) have shown increasing interest, growing from 20.73% in 2021 to 25.79% in March 2024.
The number of shareholders has significantly increased. As of March 2024, Varun Beverages has over 4.8 lakh shareholders.
8. Financial Metrics:
- Varun Beverages has achieved strong profit growth, with a 47.3% CAGR over the last 5 years.
- The company maintains resilient net profit margins.
- It has an impressive Return on Equity (ROE) of 35.2% over the last year.
- Sales growth has been notable, with a median rate of 21.8% over the last decade.
- The company effectively manages its cash conversion cycle, ensuring efficient working capital utilisation.
Leading the way Towards Sustainability
Varun Beverages is committed to sustainability, making it a way of life. They have a mission to refresh consumers while ensuring a positive impact on the planet and well-being. D79B30
This commitment is evident through their focus on reducing carbon emissions, water stewardship, waste management, and renewable energy.
They have established cross-functional ESG task forces and board-level committees to drive initiatives. Their roadmap includes targets for water stewardship, plastic waste management, and climate action.
VBL showcases green initiatives like plantation projects, energy-efficient equipment, and electric vehicles for distribution. This demonstrates their dedication to sustainability beyond compliance.
FAQs| Varun Beverages History
Varun Beverages is not owned by PepsiCo. It is a part of RJ Corp, which is owned by Ravi Jaipuria. It is one of the largest franchisees of PepsiCo outside the United States.
Varun Beverages manufactures and distributes a variety of PepsiCo’s beverage products, including carbonated soft drinks like Pepsi, 7 Up, Mountain Dew, and Mirinda, and non-carbonated drinks such as Tropicana fruit juices, Gatorade sports drinks, etc.
Varun Beverages is owned by RJ Corp. Its founder and chairman is Ravi Jaipuria.
No, PepsiCo and VBL are not the same. PepsiCo is an American multinational snack, food, and beverage corporation, while Varun Beverages has a franchisee to manufacture and distribute PepsiCo’s products in several countries.
Source– varunbeverages.com, screener.in
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