Varun Beverages, the largest bottler of PepsiCo drinks outside the US, is closing in to acquire more territories from the cola major in India
Varun Beverages, the largest bottler of PepsiCo drinks outside the US, is closing in to acquire more territories from the cola major in India. The bottler from the stable of Ravi Jaipuria led RJ Corp, is in advanced talks with PepsiCo for rights to bottle and market its beverages – both cola and non-cola – in seven Indian states in the southern and western parts of the country.
The franchising operation, if successful, would bring crucial territories like Gujarat, Maharashtra, Karnataka, Kerala, Tamil Nadu Andhra Pradesh and Telangana under Varun Beverages’ fold. Put together, these seven states constitute nearly 40 percent of the country’s Rs 34,000 crore branded beverages market.
The deal would give Varun Beverages an unprecedented edge over all its competitors in the country. While most other bottlers of Coca-Cola and PepsiCo have rights for specific regions after the deal is signed, Varun Beverages would have 27 out of 29 states under its fold barring Jammu & Kashmir and Sikkim.
The firm already has bottling rights for 21 states including the fast-growing seven northeastern states and two union territories Delhi-NCR and Chandigarh after its successful acquisition of crucial central and east Indian states like Madhya Pradesh, Chhattisgarh, Jharkhand, Bihar and Odisha, last year.
Apart from these, VB recently acquired rights for two neighboring countries Nepal and Sri Lanka. The two countries and India currently contribute some 90 percent of its Rs 4,500 crore yearly revenue. The rest comes from regions like Morocco, Zambia and Zimbabwe acquired in 2018.