Insights

Varun Beverages to manufacture Kurkure Puffcorn

2 March 2022 • Parikshit Singh

Varun Beverages on 28th February announced to the exchange that the company’s board has approved the plan to enter into an agreement to manufacture “Kurkure Puffcorn” for PepsiCo India Holding Private limited as a part of their network of co-packers.

This is the company’s first foray into the non-beverage segment. Kurkure is a brand of crunchy puffs made up of rice, lentil, and corn, produced and marketed by PepsiCo India.

Varun Beverages is an important player in the beverage industry and one of the largest franchisees of PepsiCo in the world (outside the USA). The company manufactures 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. Carbonated soft drinks, juice, and packaged drinking water accounted for 61%, 5%, and 34% of the company’s volume in Q4CY21.

Varun Beverages has received franchises for several PepsiCo brands in 27 Indian states and seven union territories so far. In Fiscal 2021, India was the largest market, accounting for 75% of total revenues from operations (net). VBL has also been granted the franchise for a number of PepsiCo goods in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.

In Q4CY21, Varun announced sales and EBITDA increases of 30.3% and 20.5%, respectively, over the previous quarter. Volume increased by 28.7% year over year, while net realizations per case increased by 1.2%.

Source: Exchange Filing

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