Varun Beverages Ltd (VBL)
₹1044.2▲1.06%
Key Stats
₹1015
Day's Price Range
₹1048.7
₹539.2
52-Week Price Range
₹1194.7
| Returns | |
| 1 Month Return | -0.87 % |
| 3 Month Return | 30.11 % |
| 1 Year Return | 72.65 % |
Company Financials
Value in ₹ crore
Peer Comparsion
PE
Rank 2
51.69
EPS
Rank 4
₹19.98
BVPS
Rank 7
₹62.81
Dividend Yield
Rank 6
0.27%
ROE
Rank 11
11.64%
Price To Book Ratio
Rank 7
16.44
Debt To Asset
Rank 3
0.57
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Company Information
Varun Beverages Ltd part of the RJ Corp group a diversified business conglomerate with interests in beverages quickservice restaurants dairy and healthcare is the second largest franchisee in the world outside US of carbonated soft drinks CSDs and noncarbonated beverages NCBs sold under trademarks owned by PepsiCo. The company produces and distributes a wide range of CSDs as well as a large selection of NCBs including packaged drinking water. PepsiCo CSD brands produced and sold by the company include Pepsi Diet Pepsi SevenUp Mirinda Orange Mirinda Lemon Mountain Dew SevenUp Nimbooz Masala Soda Evervess Soda Sting and Gatorade. PepsiCo NCB brands produced and sold by the company include Tropicana 100 Essentials Delight Tropicana Slice Tropicana Frutz SevenUp Nimbooz and Quaker Oat Milk as well as packaged drinking water under the brand Aquafina. In addition the company has also been granted the franchise for Ole brand of PepsiCo products in Sri Lanka.The company has been associated with PepsiCo since the 1990s and over two and half decades consolidated its business association with PepsiCo increasing the number of PepsiCo licensed territories and subterritories covered by the company producing and distributing a wider range of PepsiCo beverages introducing various SKUs in the companys portfolio and expanding the companys distribution network. As of March 2018 the company has been granted franchises for various PepsiCo products spread across 21 States and two Union Territories in India. The companys share of PepsiCo beverages volume sales based on sales to end customers increased from 26.46 in Fiscal 2011 to 51 in Fiscal 2018. Although India is the companys largest market the company has also been granted the franchise for various PepsiCo products for the territories of Nepal Sri Lanka Morocco Zambia and Zimbabwe.As of March 2018 the company has 20 manufacturing plants in India and five production facilities in the international geographies one each in Nepal Sri Lanka Morocco Zambia and Zimbabwe. In addition the company has set up backward integration facilities for production of preforms crowns corrugated boxes plastic crates and shrinkwrap films in certain of the companys production facilities to ensure operational efficiencies and quality standards.The companys Promoter and Chairman Mr. Ravi Kant Jaipuria has an established reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCos International Bottler of the Year award which was awarded in 1997.The company was incorporated as Varun Beverages Limited on 16 June 1995 at New Delhi as a public limited company under the Companies Act 1956. The company obtained a certificate of commencement of business on 4 July 1995. The company started its operations at Jaipur in 1996. In 1999 the company started operations at Alwar Jodhpur and Kosi. Devyani Beverages Limited was merged with Varun Beverages pursuant to the order of High Court of Delhi dated 6 October 2004. Varun Beverages International Limited was merged with Varun Beverages pursuant to the order of High Court of Delhi dated 12 March 2013. In 2013 Varun Beverages acquired the business of manufacturing and marketing of soft drink beverages and syrup mix in Delhi India.In 2015 through a business transfer agreement Varun Beverages acquired PepsiCo Indias business of manufacturing marketing selling and distributing soft drink beverages and syrup mix in the Indian states of Uttar Pradesh excluding certain territories Uttarakhand Himachal Pradesh Haryana excluding certain territories and the Union Territory of Chandigarh. During the year the company through a business transfer agreement acquired PepsiCo Indias business of manufacturing marketing selling and distributing soft drink beverages and syrup mix in Bazpur Jainpur Satharia and Panipat. During the year the company acquired the business of selling and distribution of soft drinks beverages and syrup mix in one district undertaking situated in Punjab.In 2016 Varun Beverages acquired entire shareholding of Arctic International Private Limited in Varun Beverages Mozambique Limitada. During the year the company acquired entire shareholding of Arctic International Private Limited in Varun Beverages Zambia Limited. During the year Varun Beverages acquired 85 shareholding of Varun Beverages Zimbabwe Private Limited VBZPL.Varun Beverages came out with an initial public offer IPO during the period from 26 October 2016 to 28 October 2016. The IPO was a combination of fresh issue of 1.5 crore shares and offer for sale of 1 crore shares from the promoters. The IPO was priced at Rs 445 per share. The companys shares were listed on the bourses on 8 November 2016.On 23 February 2017 Varun Beverages announced that it has increased its stake in its Zambia subsidiary Varun Beverages Zambia Limited to 90 from 60. VBL has been successfully running the Zambia operations since its acquisition in 2016. The increase in stake reflects the companys confidence in the future growth prospects of the subsidiary and will be an effective catalyst to drive further business growth in a fastgrowing emerging market.On 9 March 2017 Varun Beverages Limited VBL announced that it has divested 41 stake in its Mozambique subsidiary Varun Beverages Mozambique Limitada. The divestment of the stake is in view of limited opportunity to scaleup operations which would have enabled the company to turnaround the loss making subsidiary. VBL continues to hold a residual stake of 10 in the unit. On 4 May 2017 Varun Beverages announced that the company has set up a new unit for manufacturing of Pepsi range of products at District Hardoi Uttar Pradesh and the commercial production/operation has started with effect from 3 May2017.On 28 September 2017 Varun Beverages announced that the company has concluded the acquisition of PepsiCo Indias previously franchised territories in the state of Odisha and parts of Madhya Pradesh along with two manufacturing units at Bargarh and Bhopal Mandideep. On 4 January 2018 Varun Beverages announced that it has further deepened its relationship with PepsiCo by entering into a strategic partnership for the larger Tropicana portfolio along with Gatorade and Quaker ValueAdded Dairy in territories across North and East India. This is part of VBLs strategy to expand its product portfolio through its valued relationship with PepsiCo.On 11 January 2018 Varun Beverages announced that it has concluded the acquisition of PepsiCo Indias previously franchised rights for the state of Chhattisgarh. The Board of Directors of Varun Beverages at its meeting held on 17 January 2018 considered and approved to acquire franchisee rights for PepsiCo Indias previously franchised subterritory in the State of Bihar. Varun Beverages subsidiary Varun Beverages Zimbabwe Private started Commercial Production at a Greenfield facility for Pepsicos products with effect from 16 February 2018.On 23 March 2018 Varun Beverages announced that it has concluded the acquisition of PepsiCo Indias previously franchised sub territory in the State of Jharkhand along with one manufacturing unit at Jamshedpur. The company is now a franchisee for PepsiCo products across 21 States and 2 Union Territories of India.On 5 April 2018 Varun Beverages announced its plans to setup a greenfield production facility subject to receipt of necessary approvals to create inhouse production capacity at Pathankot district of Punjab for Tropicana fruit juices Quaker Oats Milk based Beverages and Gatorade. Spread over 41 acres it will be the first fully backward integrated facility in India to manufacture the complete range of above products including carbonated soft drinks CSD at a single location. The expansion is to take advantage of the growing demand of Juice Based beverages for health conscious consumers.On 3 May 2018 Varun Beverages informed the stock exchanges that a new unit at Nawalparasi District in Napal under Varun Beverages Nepal Private Limited a wholly owned subsidiary of the company started commercial production with effect from 2 May 2018.
| Organisation | Varun Beverages Ltd |
| Headquarters | New Delhi |
| Industry | FMCG |