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Informist, Wednesday, Oct. 29, 2025

 

--Open to idea of entering low alcoholic beverages in India
--Open to idea of entering ready-to-drink products in India
--See double-digit growth in soft drinks in future in India
--Looking to expand in different parts of Africa

 

By Avishek Rakshit & Anand JC
  
MUMBAI – Varun Beverages Ltd. may consider foraying into ready-to-drink and low alcoholic beverages manufacturing and distribution in India following a similar move in Africa, a senior company official said Tuesday. 

 

The company, which is one of the largest global franchisees of PepsiCo, which sells PepsiCo-licensed products in India and Africa, has amended its memorandum of association to enter the business of manufacturing, blending, bottling, selling, distributing, and trading ready-to-drink and other alcoholic beverages in India and abroad. The product range includes beer, wine, liquor, spirit, brandy, whisky, gin, rum, and vodka.

 

So long, Varun Beverages has been operating businesses encompassing aerated soft drinks, water, packaged snacks, and ice creams in India and abroad. However, following a change to its memorandum, the company ventured into manufacturing, selling, and distributing beer in Africa and established a subsidiary in Kenya that will engage with Carlsberg Breweries A/S to produce and sell the latter's beer.

 

"For the time being, it is overseas, but it is open. We are open to India also," the company's Chairman Ravi Jaipuria told sector analysts at a post-earnings conference call. He was responding to a question on whether the foray into alcoholic beverages is limited to Africa or whether the company may consider a similar move for India as well.

 

Jaipuria said that in Africa, Varun Beverages can use the same distribution channels for soft drinks and alcoholic beverages and the same retailers can sell non-alcoholic as well as alcoholic beverages from the same outlet. However, in India, a separate license is needed for retailers selling alcoholic products.

 

"In Africa, we don't have the challenges what India has. So, we have the same go-to market. Our trucks can be loaded on the same. The same people can sell the products. So, it becomes much easier and without extra expense. And there is a huge scope on that," Jaipuria said.

 

Varun Beverages will initially test-market Carlsberg beer in select areas and, based on the findings and experience, scale up operations and enter new countries in Africa to set up alcoholic beverage manufacturing and sales operations.

 

At the same time, Varun Beverages is planning to increase its operations and presence in Africa, which accounts for around 25% of its sales volume. "We are growing in healthy double digits and that's very healthy for South Africa. We made some errors, but we have come back and DRC (Democratic Republic of Congo) started to perform well again. Next year, we see huge growth coming," the official said, adding that the projected sales growth rates in Nepal and Sri Lanka are just like India.

 

"The domestic market presents ample headroom for sustained double-digit growth," Jaipuria said.

 

Wednesday, shares of Varun Beverages closed 9.1% higher at INR 495.45 on the National Stock Exchange. The company announced its September quarter results during market hours. Varun Beverages reported 20% on-year growth in its consolidated bottom line for the September quarter to INR 7.4 billion. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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