Varun Beverages Ltd

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NSEBSE

1060.850.90 (0.08%)

03:53 PM,29th Nov 2023

1061.803.90 (0.37%)

04:01 PM,29th Nov 2023

BSE : 540180

NSE : VBL

Sector : Agri and agri inputs

ISIN Code : INE200M01021

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Last Updated: Nov 29 2023 | 04:01 PM IST

Market Cap (₹ Cr)

137827

Turnover (₹ Cr)

7.79

Volume (Shares)

734545

Face Value

5

52-WK High

1075.00

52-WK High Date

28 Nov 2023

52-WK Low

550.00

52-WK Low Date

03 Feb 2023

All Time High

1075.00

All Time High Date

28 Nov 2023

All Time Low

50.37

All Time Low Date

14 Mar 2017

Varun Beverages Ltd

Varun Beverages Ltd part of the RJ Corp group a diversified business conglomerate with interests in beverages quick-service restaurants dairy and healthcare is the second largest franchisee in the world (outside US) of carbonated soft drinks ('CSDs') and non-carbonated beverages ('NCBs') sold under trademarks owned by PepsiCo. The company produces and distributes a wide range of CSDs as well as a large selection of NCBs including packaged drinking water. The Company has presence in 27 States and 7 Union Territories in India and 5 other countries across the world viz. Nepal Sri Lanka Morocco Zambia & Zimbabwe. Further It is is having 37 manufacturing facilities of which 31 are in India and 6 in International Geographies with more than 2500 owned vehicles more than 2000 primary distributors and more than 100 depots.PepsiCo CSD brands produced and sold by the company include Pepsi Diet Pepsi Seven-Up Mirinda Orange Mirinda Lemon Mountain Dew Seven-Up Nimbooz Masala Soda Evervess Soda Sting and Gatorade. PepsiCo NCB brands produced and sold by the company include Tropicana (100% Essentials & Delight) Tropicana Slice Tropicana Frutz Seven-Up Nimbooz and Quaker Oat Milk as well as packaged drinking water under the brand Aquafina. In addition the company has also been granted the franchise for Ole brand of PepsiCo products in Sri Lanka.The company has been associated with PepsiCo since the 1990s and over two and half decades consolidated its business association with PepsiCo increasing the number of PepsiCo licensed territories and sub-territories covered by the company producing and distributing a wider range of PepsiCo beverages introducing various SKUs in the company's portfolio and expanding the company's distribution network. As of March 2018 the company has been granted franchises for various PepsiCo products spread across 21 States and two Union Territories in India. The company's share of PepsiCo beverages volume sales based on sales to end customers increased from 26.46% in Fiscal 2011 to ~51% in Fiscal 2018. Although India is the company's largest market the company has also been granted the franchise for various PepsiCo products for the territories of Nepal Sri Lanka Morocco Zambia and Zimbabwe.As of March 2018 the company has 20 manufacturing plants in India and five production facilities in the international geographies (one each in Nepal Sri Lanka Morocco Zambia and Zimbabwe). In addition the company has set up backward integration facilities for production of preforms crowns corrugated boxes plastic crates and shrink-wrap films in certain of the company's production facilities to ensure operational efficiencies and quality standards.The company's Promoter and Chairman Mr. Ravi Kant Jaipuria has an established reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCo's International Bottler of the Year award which was awarded in 1997.The company was incorporated as Varun Beverages Limited on 16 June 1995 at New Delhi as a public limited company under the Companies Act 1956. The company obtained a certificate of commencement of business on 4 July 1995. The company started its operations at Jaipur in 1996. In 1999 the company started operations at Alwar Jodhpur and Kosi. Devyani Beverages Limited was merged with Varun Beverages pursuant to the order of High Court of Delhi dated 6 October 2004. Varun Beverages (International) Limited was merged with Varun Beverages pursuant to the order of High Court of Delhi dated 12 March 2013. In 2013 Varun Beverages acquired the business of manufacturing and marketing of soft drink beverages and syrup mix in Delhi India.In 2015 through a business transfer agreement Varun Beverages acquired PepsiCo India's business of manufacturing marketing selling and distributing soft drink beverages and syrup mix in the Indian states of Uttar Pradesh (excluding certain territories) Uttarakhand Himachal Pradesh Haryana (excluding certain territories) and the Union Territory of Chandigarh. During the year the company through a business transfer agreement acquired PepsiCo India's business of manufacturing marketing selling and distributing soft drink beverages and syrup mix in Bazpur Jainpur Satharia and Panipat. During the year the company acquired the business of selling and distribution of soft drinks beverages and syrup mix in one district undertaking situated in Punjab.In 2016 Varun Beverages acquired entire shareholding of Arctic International Private Limited in Varun Beverages Mozambique Limitada. During the year the company acquired entire shareholding of Arctic International Private Limited in Varun Beverages (Zambia) Limited. During the year Varun Beverages acquired 85% shareholding of Varun Beverages (Zimbabwe) (Private) Limited (VBZPL).Varun Beverages came out with an initial public offer (IPO) during the period from 26 October 2016 to 28 October 2016. The IPO was a combination of fresh issue of 1.5 crore shares and offer for sale of 1 crore shares from the promoters. The IPO was priced at Rs 445 per share. The company's shares were listed on the bourses on 8 November 2016.On 23 February 2017 Varun Beverages announced that it has increased its stake in its Zambia subsidiary Varun Beverages (Zambia) Limited to 90% from 60%. VBL has been successfully running the Zambia operations since its acquisition in 2016. The increase in stake reflects the company's confidence in the future growth prospects of the subsidiary and will be an effective catalyst to drive further business growth in a fast-growing emerging market.On 9 March 2017 Varun Beverages Limited (VBL) announced that it has divested 41% stake in its Mozambique subsidiary Varun Beverages Mozambique Limitada. The divestment of the stake is in view of limited opportunity to scale-up operations which would have enabled the company to turnaround the loss making subsidiary. VBL continues to hold a residual stake of 10% in the unit. On 4 May 2017 Varun Beverages announced that the company has set up a new unit for manufacturing of Pepsi range of products at District Hardoi Uttar Pradesh and the commercial production/operation has started with effect from 3 May2017.On 28 September 2017 Varun Beverages announced that the company has concluded the acquisition of PepsiCo India's previously franchised territories in the state of Odisha and parts of Madhya Pradesh along with two manufacturing units at Bargarh and Bhopal (Mandideep). On 4 January 2018 Varun Beverages announced that it has further deepened its relationship with PepsiCo by entering into a strategic partnership for the larger Tropicana portfolio along with Gatorade and Quaker Value-Added Dairy in territories across North and East India. This is part of VBL's strategy to expand its product portfolio through its valued relationship with PepsiCo.On 11 January 2018 Varun Beverages announced that it has concluded the acquisition of PepsiCo India's previously franchised rights for the state of Chhattisgarh. The Board of Directors of Varun Beverages at its meeting held on 17 January 2018 considered and approved to acquire franchisee rights for PepsiCo India's previously franchised sub-territory in the State of Bihar. Varun Beverages' subsidiary Varun Beverages (Zimbabwe) (Private) started Commercial Production at a Greenfield facility for Pepsico's products with effect from 16 February 2018.On 23 March 2018 Varun Beverages announced that it has concluded the acquisition of PepsiCo India's previously franchised sub territory in the State of Jharkhand along with one manufacturing unit at Jamshedpur. The company is now a franchisee for PepsiCo products across 21 States and 2 Union Territories of India.On 5 April 2018 Varun Beverages announced its plans to set-up a greenfield production facility (subject to receipt of necessary approvals) to create in-house production capacity at Pathankot district of Punjab for Tropicana fruit juices Quaker Oats Milk based Beverages and Gatorade. Spread over ~41 acres it will be the first fully backward integrated facility in India to manufacture the complete range of above products including carbonated soft drinks (CSD) at a single location. The expansion is to take advantage of the growing demand of Juice Based beverages for health conscious consumers.On 3 May 2018 Varun Beverages informed the stock exchanges that a new unit at Nawalparasi District in Napal under Varun Beverages (Nepal) Private Limited a wholly owned subsidiary of the company started commercial production with effect from 2 May 2018.The Board of Directors in their meeting held on February 18 2019 approved its intent to enter into a binding agreement with PepsiCo India Holdings Private Limited to acquire franchise rights in South and West regions o f India from PepsiCo for a national bottling sales and distribution footprint in 7 States and 5 Union Territories. In May 2019 the Company acquired franchise rights in South and West regions from PepsiCo for a national bottling sales and distribution footprint in 7 States and 5 Union Territories of India. It acquired franchise rights in the states of Gujarat Telangana Kerala Tamil Nadu and parts of Maharashtra Karnataka Andhra Pradesh and in Union Territories of Daman & Diu Dadra & Nagar Haveli Andaman & Nicobar Islands and Lakshadweep and Puducherry except Yanam. In February 2019 it acquired territorial rights from SMV Group for parts of Maharashtra (14 districts) Karnataka (13 districts) and Madhya Pradesh (3 districts). The Company acquired an additional 20% stake in Lunarmech Technologies Private Limited during the year which makes and sells PET bottle caps and crown caps increasing their shareholding to 55% of the effective equity share capital. Post-acquisition Company holds 55% of the effective equity share capital of Lunarmech. Subsequently Company acquired control of Angelica Technologies Private Limited by appointment of majority of Directors on the Board of Angelica. Post acquisition of control both Angelica and Lunarmech (in which Angelica holds 74% equity share capital) became subsidiaries of the Company. Additionally it acquired two production facilities one at Dharwad Karnataka for a total consideration of Rs. 747.25 million; and the second at Tirunelveli Tamil Nadu for a total consideration of Rs. 200 million. Apart from these it launched 3 new variants of ambient temperature value-added dairy beverages Belgian Choco Shake Cold Coffee and Mango Shake in 200ml PET bottle with a 180-day shelf life during year 2019-20.As of December 31 2021 the Company had 31 state-of-the-art manufacturing facilities in India and 6 globally. During the year 2021 the Company incorporated a new company with the name `Varun Beverages RDC SAS' in Democratic Republic of Congo (DRC) to initially import finished products like carbonated and non-carbonated beverages distribute to test and establish the market before setting up a manufacturing facility locally. A new plant in Bihar was set up to improve market presence and gain a foothold in the territory. Apart from this a new plant was set up for manufacturing of plastic preforms and plastic closures in Jammu & Kashmir.During the year 2022 Company issued and allotted 216516540 Bonus Equity Shares in the proportion of 1:2 (i.e. one equity share for every two equity shares). As part of the aforesaid allotment 38418 Bonus Equity Shares representing fractional entitlement(s) of 76836 eligible Members were consolidated and allotted to Varun Beverages Limited and the aforesaid 38418 Equity Shares were sold by the Trust on June 23 2022 & June 24 2022 and the net sale proceeds of the same were distributed to the eligible Members.During the year 2022 the Company commenced manufacturing carbonated soft drinks juice-based drinks and packaged drinking water in Bihar; manufacturing plastic preforms and closures at plant in Jammu & Kashmir and established a business line for production of Kurkure Puffcorn for PepsiCo in Kosi Uttar Pradesh.

Varun Beverages Ltd - Key Fundamentals

PARAMETER VALUES
Market Cap (₹ Cr)

137827

EPS - TTM (₹) [S]

13.20

P/E Ratio (X) [S]

20.58

Face Value (₹) 5
Latest Dividend (%)25.00
Latest Dividend Date 14 Aug 2023
Dividend Yield (%) 0.17
Book Value Share (₹) [S]51.56
P/B Ratio (₹) [S]20.58
[*C] Consolidated [*S] Standalone

Funds Owing this Stock

Scheme Name Amount Invested ( ₹ Cr ) No Of Shares Net Asset (%)
Sundaram Debt Oriented Hybrid Fund (G) 0.51 5000 1.81
Sundaram Debt Oriented Hybrid Fund - Dir (G) 0.51 5000 1.81
Groww ELSS Tax Saver Fund (G) 0.43 4198 1.10
Groww ELSS Tax Saver Fund (IDCW) 0.43 4198 1.10
Groww ELSS Tax Saver Fund - Direct (G) 0.43 4198 1.10
Groww ELSS Tax Saver Fund - Direct (IDCW) 0.43 4198 1.10
Groww Nifty Total Market Index Fund-Regular (G) 0.12 1207 0.34
Groww Nifty Total Market Index Fund-Direct (G) 0.12 1207 0.34

Research Reports

Date BrokerActionPrices(Rs)Report
14-10-2022Motilal Oswal Buy 1045
22-03-2022Kotak Securities Buy 943

Stock Strength

Today's Low/High

1054.55

1074.60

Week Low/High

1016.25

1075.00

Month Low/High

877.00

1075.00

Year Low/High

550.00

1075.00

All time Low/High

50.56

1075.00

Share Price Returns

Period BSENSE SENSEXNIFTY
1 Week2.81%2.86%1.331.44%
1 Month15.08%15.13%4.895.51%
3 Month19.41%19.34%2.813.90%
6 Month25.50%25.41%6.458.05%
1 Year85.21%85.11%6.737.94%
3 Year446.66%447.82%51.5354.96%

Company Info

Company Information

Chairman (Non-Executive) : RAVI KANT JAIPURIA

Executive Vice Chairman : Varun Jaipuria

Whole-time Director : RAJ PAL GANDHI

Independent Director : Naresh Kumar Trehan

Independent Director : Pradeep Sardana

Company Sec. & Compli. Officer : Ravi Batra

Independent Director : Sita Khosla

Independent Director : Ravi Gupta

Independent Director : Rashmi Dhariwal

Whole-time Director : Rajinder Jeet Singh Bagga

Addtnl Independent Director : Abhiram Seth

Addtnl Independent Director : Anil Kumar Sondhi

Registered Office: F-2/7 Okhla Industrial Area, Phase-I,New Delhi,New Delhi-110020 Ph: 91-124-4643100/41706720-25

Email:complianceofficer@rjcorp.in

URL:http://www.varunpepsi.com