Varun Beverages, a leading bottler of PepsiCo beverages, announced on Saturday that it has commenced commercial production of soft drinks and energy drinks at its new facility in Gorakhpur, Uttar Pradesh. The company, promoted by the Jaipuria family, also disclosed plans to introduce juices and value-added dairy products at the same location, according to a regulatory filing.
The firm stated, “Our company has initiated commercial production of carbonated soft drinks & energy drinks (with juices and value-added dairy products to follow) at its production facility in Gorakhpur, Uttar Pradesh.”
This endeavor represents a substantial investment of approximately Rs 1,100 crore for the greenfield project.
In its most recent annual report, Varun Beverages highlighted its intention to expand production capacities within the juices and value-added dairy products segments in 2024.
Varun Beverages operates across six countries, with its primary markets being India, Sri Lanka, Nepal, Morocco, Zambia, and Zimbabwe. Notably, the Indian Subcontinent (India, Sri Lanka, and Nepal) contributed 83 per cent of its net revenues in 2023, while three African countries (Morocco, Zambia, and Zimbabwe) contributed the remaining 17 per cent.
Varun Beverages plays a pivotal role in PepsiCo’s operations in India, accounting for over 90 per cent of the beverage giant’s sales volume in the country.
The company’s product portfolio includes a diverse range of PepsiCo-owned beverages, such as carbonated soft drinks, carbonated juice-based beverages, juice-based beverages, energy drinks, sports drinks, and packaged drinking water.
Varun Beverages, which aligns its financial year with the calendar year, reported net revenues of Rs 16,042.58 crore in 2023.
