A case study on Varun Beverages

What is Varun Beverages?

Varun Beverages Ltd (VBL) is one of India’s fastest-growing beverage companies. It is the second-largest franchisee of PepsiCo in the world outside the U.S. VBL manufactures, bottles, and distributes popular PepsiCo beverages like Pepsi, Mountain Dew, Slice, and 7UP across India and international markets.

The roots of Varun Beverages go back to the 1960s, when Chunilal Jaipuria started with Coca-Cola bottling in India. After Coca-Cola exited India in 1977, the company shifted to bottling for Thums Up, and eventually made the strategic move to partner with PepsiCo. That move paid off big. Today, Varun Beverages handles 90%+ of PepsiCo’s bottling in India and is also expanding into global markets like Zimbabwe, Zambia, and Morocco with exclusive franchise rights for snacks starting in 2025.

Here’s why investors are bullish on Varun Beverages share in 2025: 

1. Strong Partnership with PepsiCo VBL is PepsiCo’s trusted partner. In fact, it’s their second-largest bottler globally. PepsiCo has even awarded Varun Beverages with international snack distribution rights — a first in Pepsi’s history! 

2. Solid Financial Performance The company has turned things around financially. From a loss of ₹640 crore in earlier years, it’s now reporting profits of over ₹430 crore. They recently raised ₹500 crore to fund further expansion and reduce debt.

3. Massive Market Potential India’s per capita soft drink consumption is just 7 liters per year, compared to 120 liters in the U.S. This shows there's a huge opportunity for growth as more Indians start consuming beverages. 

4. International Expansion With entry into African markets and potential for snack products, VBL is no longer just a domestic player. Its global ambitions make it more attractive for long-term investors.

• Strong & growing relationship with PepsiCo
• Proven track record of growth via acquisitions
• International expansion into new markets
• Huge untapped market in India
• Financial turnaround and fundraising success

With strong fundamentals, new markets, and increasing investor confidence, Varun Beverages share is on many analysts' watchlists. It could see steady upward movement, especially if it captures more market share and expands successfully overseas

Varun Beverages isn’t just a bottler — it's a case study in smart strategy, execution, and growth. With the right mix of domestic dominance and international ambitions, its share could be a smart pick for investors looking at long-term growth stories in 2025 and beyond. We recommend to do your due diligence.