VBL – Varun Beverages Ltd.
CMP Rs. 784, on 07-08-2021
Company Website : https://varunpepsi.com/
Varun Beverages 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 and a key player in the beverage industry.
The company produces and distributes a wide range of CSDs, as well as a large selection of NCBs, including packaged drinking water. PepsiCo CSD brands sold by company include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Evervess Soda, Duke’s Soda, and Sting.
PepsiCo NCB brands sold by us include Tropicana (100%, Essentials & Delight), Tropicana Slice, Tropicana Frutz, Seven-Up Nimbooz, Gatorade, and Quaker Oat Milk as well as packaged drinking water under the brand Aquafina.
The company has been associated with PepsiCo since the 1990s and has over two and half decades of business association.
The company has been granted franchisees for various PepsiCo products spread across 27 states and 7 union territories (except Jammu & Kashmir and Andhra Pradesh) in India.
Varun Beverages Ltd has 30 manufacturing plants in India (Gr. Noida 1, Gr. Noida 2, Kosi, Sathariya 1, Sathariya 2, Bazpur, Jainpur & Hardoi in Uttar Pradesh, Bhiwadi & Jodhpur in Rajasthan, Nuh & Panipat in Haryana, Phillaur and Pathankot in Punjab, Kolkata in West Bengal, Guwahati Unit 1 & 2 in Assam, Goa, Mandideep in Madhya Pradesh, Bargarh & Cuttack in Odisha, Jamshedpur in Jharkhand, Bharuch in Gujarat, Mahul, Roha and Paithan in Maharashtra, Nelamangala in Karnataka, Palakkad in Kerala, Sri City in Andhra Pradesh, Sangareddy in Telangana and Mamandur in Tamil Nadu) and 6 manufacturing plants in international geographies (two in Nepal and one each in Sri Lanka, Morocco, Zambia and Zimbabwe). In addition, company have set up backward integration facilities for production of preforms, crowns, corrugated boxes, plastic crates and shrink-wrap films in certain of our production facilities to ensure operational efficiencies and quality standards.
The group manufactures and markets carbonated and non-carbonated soft drinks and package drinking water under the PEPSI brand umbrella.
VARUN BEVERAGES Announces Quarterly Results (1QFY22); Net Profit Up 123.0% – For the quarter ended June 2021, VARUN BEVERAGES has posted a net profit of Rs 3 bn (up 123.0% YoY). Sales on the other hand came in at Rs 25 bn (up 49.1% YoY).
While the company ended CY2020 on a strong note, with better-than-expected December-quarter results, revenues for the year have declined by 9.5% year-on-year to ₹6450 crore, as demand was hit due to the pandemic.
The stock has been trading as per the Momentum Triple Pattern theory in all time frames such as daily, weekly and monthly chart which indicates that the trend is up and the stock could further accelerate its upward journey.
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