Varun Beverages bags rights to distribute PepsiCo drinks across India

The deal would mean that VBL would be able to operate in seven more states and five union territories in India

Varun Beverages (VBL), the largest bottler of PepsiCo drinks outside the US, has bagged the contract to bottle and distribute PepsiCo drinks across India, clearing the path for PepsiCo to exit the bottling business in the country. 

The Ravi Jaipuria-led RJ Corp company on Monday said in a regulatory filing it entered into a binding agreement with PepsiCo India - the local subsidiary of New York-headquartered beverages major PepsiCo. The agreement will allow VBL to bottle and market all PepsiCo drinks — both cola and non-cola — leaving the cola major with only rights to produce and distribute its snacks.