Rural distribution + Africa
Varun Beveragestogether with its subsidiaries a joint venture and associates is engaged in manufacturing, selling, bottling and distribution of beverages of Pepsi brand in geographically pre-defined territories of India, Sri Lanka, Nepal, Zambia, Morocco, Zimbabwe, RDC, Mozambique, South Africa, Lesotho, Eswatini, Namibia and Botswana as per franchisee agreement with PepsiCo India Holdings Private Limited (PepsiCo India) and its affiliates. The sale of the company’s products is seasonal.
Varun Beverages Limited, together with its subsidiaries, manufactures, bottles, sells, and distributes beverages under the PepsiCo brands in India, Sri Lanka, Nepal, Zambia, Morocco, Zimbabwe, the Democratic Republic of Congo, Mozambique, South Africa, Lesotho, Eswatini, Namibia, and Botswana. The company offers carbonated soft drinks under the Pepsi, Pepsi Zero, Mountain Dew, Mirinda, and Seven-Up brands, as well as the Refreshhh, Coo-ee, and Jive brands; fruit pulp and juice-based drinks under the Slice, Tropicana, Tropicana Delight, and Seven-Up Nimbooz brands; club sodas under the Evervess and Duke's brands; and energy drinks under the Sting, Adrenaline Rush, and Rockstar brands. It also provides sports drinks under the Gatorade brand; carbonated juice-based drinks under the Seven-Up Nimbooz Masala Soda brand; ice-tea under the Lipton brand; packaged drinking water under the Aquafina and Aquavess brands, as well as the Refreshhh and Aquaclear brands; and snacks under the FritoLay, Cheetos, Doritos, Simba, and Kurkure brands. In addition, the company offers energy drinks under the Reboost Energy brand; and value-added dairy-based beverages under the Cream Bell brand. Varun Beverages Limited was incorporated in 1995 and is based in Gurugram, India.
Key people: Mr. Varun Ravi Kant Jaipuria (Executive Vice Chairman) · Mr. Pankaj Madan (Chief Financial Officer) · Mr. Ravi Batra (Chief Risk Officer, Compliance Officer & Group Company Secretary) · Mr. Raj Pal Gandhi F.C.A. (Whole-Time Director) · Mr. Rajinder Jeet Singh Bagga (Whole-Time Director) · Mr. Rajesh Chawla (Chief Financial Officer of India)
Varun Beverages major competitors are ITC, Nestle India, Britannia Industries, Godrej Consumer Prod, Dabur India, P&G Hygiene & Health. Market Cap of Varun Beverages is ₹1,43,959 Crs. While the median market cap of its peers are ₹1,04,601 Crs.
Varun Beverages seems to be less financially stable compared to its competitors.Altman Z score of Varun Beverages is 12.78 and is ranked 4 out of its 7 competitors.
Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026
Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.
As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.
World's second-largest PepsiCo franchise bottler (outside the US) producing and distributing Pepsi, 7Up, Mountain Dew, Sting, Tropicana, Aquafina etc. across India (~90% of PepsiCo India beverage volumes) and 10+ international markets (Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, DRC, South Africa via BevCo and the 2026 Twizza acquisition, Ghana, Tanzania). Sold 466.7 mn cases in Q2CY26 alone; CY25 revenue Rs 21,685 cr, EBITDA margin ~23%; India is net-debt-free. Adjacent snacks manufacturing for PepsiCo in Morocco/Zimbabwe and value-added dairy are new legs. Market share vs Coca-Cola/Campa not quantified in sources used.
Stock -14% over one year (screener) but 5-yr price CAGR 27%; at 40.6x trailing it is below the 55-70x it commanded in 2023-24 during the 30%+ volume-growth phase; 10-yr profit CAGR 40% vs 5-yr 50%. EV/EBITDA 26.1x; dividend yield 0.4%.
| Nestle India | Nestle trades at 72.7x trailing vs VBL 40.6x; VBL delivers ~20% volume growth vs Nestle's high-single-digit volume, and although Nestle's ROE (74%) is far higher, VBL's incremental capex earns 20%+ ROCE and its 10-yr profit CAGR (40%) is multiples of Nestle's. |
| Tata Consumer Products | TCPL trades at 60.9x with ROE of only 7.4% and ROCE 9.2% (goodwill-heavy after Capital Foods/Organic India deals) and promoter holding 33.8%; VBL has 3x the ROE (20%) at two-thirds the multiple and 59% promoter skin in the game. |
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
FMCG — 9.5%: the main stake, for the first time in ten years
Every era in Indian markets has a sector nobody wants right before it becomes the main stake. Post-COVID, demonetisation, GST and a capex-first fiscal stance took money out of household hands and consumption went into a five-year hiatus. Starting in 2024 the wheel turned: states began putting money directly into households — women-centric cash transfers alone run at ~₹1.7 lakh crore a year across fifteen-plus states and 120 million beneficiaries, and our aggregate estimate of the welfare shift is close to ₹6 lakh crore, or 1.7% of GDP. Add GST 2.0 (September 2025 moved soaps, toothpaste, biscuits, noodles, apparel under ₹2,500 to the 5% slab), 125 bp of rate cuts and a normal monsoon, and the income impulse is real. The evidence is arriving: ex-cigarette staples volumes are at a two-year high, rural volumes have out-grown urban for seven straight quarters, and we expect a broad set of companies to print double-digit growth this year. The setup mirrors 2021 in reverse. Then, consumption's fundamentals were eroding but investors would not let go of the multiples. Today the money has moved but nobody is looking — HUL is down from ₹2,250 to ₹1,960, Britannia −17% and Trent −23% over a year, Varun −14%. We are buying the operating leverage of a volume recovery in franchises whose multiples have compressed to 40–50x from 55–70x. The sales point is not "India has a large population"; it is that a cash-flow transfer the size of the IT salary bill has already happened.
Nestlé India is a superb business at 60x+ with the least GST benefit and the slowest volume growth of the group; ITC is cigarettes-led (we specifically exclude cigarettes from the volume thesis) and now a hotels demerger story; Dabur and Godrej Consumer have weaker execution and portfolio issues (honey/chyawanprash seasonality; GCPL's African drag). Marico is a copra-cost story, not a volume story. Tata Consumer pays 60x for tea. In discretionary, V-Mart and ABFRL lack Trent's unit economics and balance sheet, and Shoppers Stop is the wrong price point for a transfer-led recovery.
| Pepsi Beverage Production Market Share in Morocco | 10 % | as of Mar 20 |
| Pepsi Beverage Production Market Share in Nepal | 45 % | as of Mar 20 |
| Pepsi Beverage Production Market Share in North & East India | 40 % | as of Mar 19 |
| Pepsi Beverage Production Market Share in South & West India | 25 % | as of Mar 19 |
| Pepsi Beverage Production Market Share in Sri Lanka | 18 % | as of Mar 20 |