Varun Beverages, ranked as PepsiCo’s second-largest bottler worldwide beyond the US borders, officially announced the establishment of VBL Mozambique, SA via an exchange filing made on November 28. This move is in line with the company’s expansion blueprint, emphasising the distribution of beverages within the region, with Mozambique being one of the countries it already exports to. The inception of VBL Mozambique, SA, spurred the stock to trade at Rs 1067.85 on the NSE by 10:14 am, experiencing a nearly 1 percent increase in its stock value on November 29.
BoFA Securities’ recent ‘buy’ endorsement, setting a price target of Rs 1,030 per share, contributed to heightened investor enthusiasm for Varun Beverages. This calculated manoeuvre showcases the company’s dedication to venturing into fresh markets and strengthening its foothold within Mozambique’s beverage industry. This aligns harmoniously with its overarching global expansion agenda articulated in the exchange filing. The corporation strives to fortify its standing as a dominant force in the global arena for beverage distribution.
Amidst the hurdles brought about by the pandemic, Varun Beverages demonstrated significant resilience in its performance. During the fiscal year 2023, the company experienced an impressive upswing in its overall revenue, marking a staggering 49 percent year-on-year increase, amounting to Rs 13,212 crore. Moreover, its profit after tax (PAT) surged substantially by 108 percent year-on-year, culminating in Rs 1,550 crore.
Ravi Jaipuria, Founder and Chairman of Varun Beverages, envisioned growth potential in India’s liberalised economy back in 1996. Over the years, the company has evolved into a top bottler of fizzy and non-aerated drinks, securing a strong market position. Their remarkable journey is highlighted by a notable surge in rankings, leaping from the 103rd position to 57th on the BT500 list between 2022 and 2023. Jaipuria’s vision has propelled Varun Beverages to become a major player for PepsiCo in India, expanding its coverage from nearly 50 percent to over 92 percent of the country’s market.
