"Varun Beverages Commences Soft Drink Production at Gorakhpur Facility"

Varun Beverages, a key bottler for beverage giant PepsiCo, has announced the initiation of commercial production for soft drinks and energy drinks at its Gorakhpur facility in Uttar Pradesh. The Jaipuria family-backed company revealed its plans to expand its product line to include juices and value-added dairy products at the same location.

In a regulatory filing, Varun Beverages Ltd (VBL) confirmed the commencement of carbonated soft drink and energy drink production at the Gorakhpur site. The company outlined its intention to introduce juices and value-added dairy products in the near future.

With an investment of approximately Rs 1,100 crore, VBL is undertaking this greenfield project, aiming to enhance its production capabilities significantly. The move aligns with VBL's strategy to expand its presence in the juices and value-added dairy segments, as highlighted in its latest annual report statement for 2024.

Operating across six countries, VBL's primary markets include India, Sri Lanka, Nepal, Morocco, Zambia, and Zimbabwe. Notably, the Indian Subcontinent contributes 83% of its net revenues, with the remaining 17% originating from African countries.

Varun Beverages holds a dominant position in PepsiCo's beverage sales volume in India, accounting for over 90% of its distribution. The company's product portfolio encompasses a wide range of PepsiCo-owned beverages, including carbonated soft drinks, juice-based beverages, energy drinks, sports drinks, and packaged drinking water.

In the financial year 2023, following the calendar year as its fiscal period, VBL reported net revenues totaling Rs 16,042.58 crore, underscoring its substantial presence and market performance in the beverage industry.

BS