Varun Beverages enters India’s alcoholic drinks market with new RTD subsidiary
The new subsidiary will target India’s ready-to-drink alcoholic beverages segment, subject to regulatory approvals.
INDIA – Varun Beverages is entering India’s alcoholic beverages market with a wholly owned subsidiary focused on ready-to-drink (RTD) alcoholic beverages, marking a new diversification move for the PepsiCo bottler.
The company’s board has approved the incorporation of KIVA Spirits and Company Ltd, subject to requisite regulatory approvals. The proposed subsidiary will have authorised share capital of Rs 10 crore and paid-up equity capital of Rs 9 crore, which will be funded in cash by Varun Beverages.
In a regulatory filing, the company said the subsidiary would undertake the RTD and alcoholic beverages business “subject to receipt of applicable requisite approvals.”
Varun Beverages said, “The Board of Directors of the Company at their meeting held today approved to incorporate a wholly-owned subsidiary company in India, inter-alia to carry on the business of Ready to Drink (RTD), Alcoholic Beverages, subject to receipt of applicable requisite approvals.”
The proposed subsidiary will be led by Mishra, who has been appointed its chief executive officer and managing director. The company said the appointment supports its diversification into RTD, alcoholic beverages and allied products.
Mishra has more than 30 years of experience across consumer businesses. He most recently served as managing director for Korea and Japan at Diageo. Previously, he spent seven years as chief commercial officer at Diageo India and three years as chief operating officer-West.
He also spent 14 years at Pernod Ricard India and served as chairman of Royal Challengers Bengaluru, where he was involved in the franchise’s commercial expansion.
According to JM Financial, India’s alcoholic beverages industry has a market size of about 1.1 billion cases. Beer and Indian-made foreign liquor (IMFL) each account for approximately 400 million cases, highlighting the scale of the domestic market.
The move expands Varun Beverages’ portfolio beyond its established soft-drink and non-alcoholic beverage operations.
The company has also expanded its international beverage activities. Late last year, it partnered with Carlsberg Breweries to distribute its products in Africa.
Separately, Varun Beverages’ board approved plans for a joint venture in Tunisia. The proposed entity will manufacture and distribute carbonated soft drinks, juices, water and dairy products, further expanding the company’s international operations.
Varun Beverages said KIVA Spirits and Company Ltd will begin its proposed alcoholic beverage activities only after obtaining the applicable regulatory approvals required for the business.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
