Varun Beverages still has fizz

Pepsi’s India bottler has grown its business consistently and profitably while generating lots of free cash. Things could get even more interesting, with the company about to go on a major diversification and expansion drive.

This is the second part in our year-end Public Markets Special for 2023. Read more about it here.

Consumption has always been deemed a strong theme in India. Players are fond of quoting low penetration figures to advertise consumption’s growth potential. While it may be too far-fetched to expect India to reach the per capita consumption levels of more developed countries, the low base and expanding middle class do offer many opportunities. This is especially true for low-value but high-aspiration categories. Such as branded beverages.

First, a quick look at the numbers. Household penetration of cold beverages in the …

Author

Ujval Nanavati

Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.

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ujval@mailtmc.com

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