Varun Beverages Expanding Production Capacity and Market; Know Why?
Varun Beverages Ltd (VBL), a leading bottler for PepsiCo, is focusing on expanding its production capacity and distribution network to capitalize on growing market opportunities.
In the annual report for CY2023, Ravi Jaipuria, Promoter and Non-Executive Chairman of VBL, highlighted the company’s strategy to enhance manufacturing facilities, particularly in the juices and dairy product segments.
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VBL has recently commissioned new production facilities in Rajasthan and Madhya Pradesh, while also increasing capacity in existing plants across India.
These expansions are aimed at meeting rising consumer demand and exploring new market opportunities. The company’s focus on strengthening its distribution network and chilling infrastructure is crucial for expanding its presence in both existing and untapped markets.
Despite challenges such as unseasonal rains impacting sales, VBL reported a 21.8% growth in net revenues in CY23, reaching ₹16,042.58 crore.
In addition to its operations in India, VBL is also expanding geographically by acquiring South Africa’s Beverage Company Ltd (BevCo).
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This acquisition aligns with VBL’s strategic goals and offers a significant opportunity to enhance its presence in the African market, known for high demand for soft drinks.
Overall, VBL’s emphasis on increasing production capacity, improving distribution, and expanding into new markets positions the company for continued growth and success in the beverage industry. Varun Beverages Expanding Production Capacity and Market; Know Why?
