Market share gains to support volume growth for Varun Beverages

Amid restrictions, the company is banking on higher in-home consumption, new launches to drive sales

The second wave of Covid-19 and resultant restrictions on movement could weigh on Varun Beverages’ prospects this summer. The impact for the national bottling partner of PepsiCo would be higher in Maharashtra as well as in the hotels, restaurants, and cafeteria, or Horeca, segment.

While most states have announced curbs, Maharashtra is contemplating stricter restrictions that could derail the rebound in the beverages market. Maharashtra accounts for 6-7 per cent of the firm’s sales. The other segment that could see impact from restrictions over hours of operation and capacity is Horeca, which contributes about 7 per cent to sales. 

Analysts at ICICI