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Varun Beverages to up PepsiCo territories in India

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Indian PepsiCo franchisee Varun Beverages has confirmed plans to acquire additional PepsiCo territory in the country.

Varun Beverages is one of the largest PepsiCo franchisees outside the US

Varun Beverages is one of the largest PepsiCo franchisees outside the US

The firm said yesterday that it intends to take on the state of Odisha and parts of Madhya Pradesh. The deal also includes three manufacturing units at Cuttack, Bargarh and Bhopal.

A spokesperson for Varun told just-drinks that these territories are "currently being managed by other franchisees of PepsiCo". Financial details behind the switch were not disclosed.

Upon completion, Varun will be the franchisee for PepsiCo across 18 states and two union territories in India.

"This is part of our strategy to consolidate our presence in contiguous territories and garner market share," said Varun's chairman, Ravi Jaipuria. "These are highly under-penetrated markets that offer long term, sustainable growth opportunities. Further, the manufacturing facilities are strategically located close to target markets, which will reduce time-to-market and enable optimisation of freight and logistics costs, aiding margin expansion."

The deal is subject to PepsiCo's final approval, Varun said.

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