Overview of Varun Beverages Ltd
Varun Beverages Ltd is a major franchise bottler of PepsiCo's carbonated and non-carbonated beverages in India and select global markets. Incorporated in 1995 under RJ Corp, VBL operates over 40 manufacturing plants, supplying to 27 Indian states, 7 union territories, and countries like Nepal, Sri Lanka, several African markets and Morocco. Brands include Pepsi, 7UP, Mirinda, Mountain Dew, Tropicana, Aquafina and Gatorade. It controls around 80% of PepsiCo’s beverage volumes in India, serving over three million outlets annually. Listed on NSE and BSE since 2016, VBL is a large-cap FMCG stock with around Rs.1.80lakhCr market cap as of May 2025.How Varun Beverages Ltd started and evolved
VBL began in 1995 as part of RJ Corp and started operations in Jaipur in 1996. Over the late 1990s, facilities were added in Alwar, Jodhpur and Kosi. In the 2000s, strategic mergers included DBL (2004) and VBIL (2012), expanding scale. The significant leap came in 2013 with VBL acquiring Pepsi’s Delhi bottling business, followed by acquisition of multiple Indian territories in 2015. VBL deepened its footprint internationally by entering Africa, acquiring Bevco in South Africa (2023) and beverage assets in Tanzania and Ghana (2024). These moves have shaped VBL into a bottling powerhouse serving 1/6th of the global population.Key milestones in Varun Beverages Ltd
VBL’s notable milestones tell a story of aggressive growth and expansion:1996: First bottling plant opens in Jaipur .
2004–2012: Mergers with DBL and VBIL solidify national presence.
2013–2015: Acquisition of Pepsi bottling rights in Delhi, Uttar Pradesh, Punjab, Haryana, Chandigarh, Maharashtra, Karnataka and Madhya Pradesh.
2016: VBL lists on NSE and BSE through IPO valuing at Rs.1,000Cr, listing at Rs. 445 per share.
2018–2019: Greenfield plant in Zimbabwe and further Indian acquisitions.
2023–2024: Acquires South Africa’s Bevco (Rs. 1,320Cr), Tanzania and Ghana businesses (~Rs. 1,631Cr), and enters Congo markets.
2024: Gorakhpur facility starts operations, expanding production capacity .
Varun Beverages Ltd’s business segments
VBL operates through two core segments:Carbonated soft drinks (CSDs) – ~70% of volumes, including Pepsi, Mountain Dew, Mirinda, 7UP, Sting and Evervess.
Non-carbonated beverages (NCBs) and packaged water – ~30% volumes, covering Tropicana, Gatorade, Aquafina and others.
Its revenue streams include manufacturing driven by franchise fees, production volumes, and marketing support. Distribution spans over 3.8 million outlets and 40 factories across India and Africa . Strategic acquisitions have strengthened its global backbone, while domestic operations rely on deep kirana networks. VBL also distributes snacks under PepsiCo brands in select territories, aligning with its mission of scale and operational excellence.