Varun Beverages gains after entering into agreement to manufacture Kurkure Puffcorn

Varun Beverages rallied 3.7% to Rs 980 bucking weak market trend after the company announced that its board approved the proposal to enter into an agreement to manufacture 'Kurkure Puffcorn' for PepsiCo India Holdings.

Kurkure is a brand of crunchy puffs made up of rice, lentil and corn, produced and marketed by PepsiCo India.

Varun Beverages is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.

As on date, Varun Beverages has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. India is the largest market and contributed ~75% of revenues from operations (net) in Fiscal 2021. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.

On a consolidated basis, the company reported a net profit of Rs 16.49 crore in Q4 December 2021 as against net loss of Rs 19.73 crore in Q4 December 2020. Net sales rose 30.31% to Rs 1,734.33 crore in Q4 December 2021 over Q4 December 2020, primarily on account of strong volume growth.

Meanwhile, the barometer index, the S&P BSE Sensex, dropped 962.56 points or 1.71% to 55,284.72 amid escalating Russia-Ukraine conflict.

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