Varun Beverages has secured a ten-year extension of its exclusive bottling and trademark licence deal with PepsiCo in India.
In a regulatory filing, the India-based PepsiCo bottler said the revised pact extended the licence to 30 April 2049 from its earlier expiry of 30 April 2039.
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The revision, effective 21 May, also removes the clause that has prevented Varun Beverages from pursuing non-PepsiCo operations.
“The earlier EBA restricted VBL from carrying out any activity other than to act as an SPV for PepsiCo business, now this requirement is deleted in the revised EBA,” the filing read.
Varun Beverages has been building its presence in Africa through a series of acquisitions.
It includes a March agreement to purchase South Africa-based Crickley Dairy from Clark Holdings for R238m (then $14.3m), which followed a December deal to acquire Twizza, a South African producer and distributor of sodas, energy drinks, and mixers.
In November 2024, Varun Beverages announced the full acquisition of PepsiCo’s bottling operations in Ghana and Tanzania.
Additionally, December 2023 saw the company paying Rs13.2bn (then $158m) for The Beverage Company (Bevco), securing PepsiCo franchise rights in South Africa, Lesotho, and Eswatini, alongside distribution rights in Namibia and Botswana.
Meanwhile, in October, Varun Beverages entered the alcoholic beverage sector through a distribution pact with Carlsberg in Africa.
For the year ended 31 December, Varun Beverages reported revenue from operations up 8.5% year-on-year to Rs222.25bn ($2.40bn). EBITDA rose 7.2% to Rs50.49bn, while net profit after tax increased 16.2% to Rs30.62bn.
The company’s revenue from operations amounted to Rs65.74bn in the first quarter, up 18.1% from the same period a year ago, while net profit after tax soared 20.1% year-on-year to Rs8.78bn.
