The Ravi Jaipuria-led Varun Beverages Ltd is planning to acquire PepsiCo India’s franchisee rights in three states from SMV Group. The company eyes buying the rights in 13 districts of Karnataka, 14 districts of Maharashtra and 3 districts of Madhya Pradesh.
Post acquisition, Varun Beverages will be a franchisee for PepsiCo products across 22 states and two union territories.
The company is acquiring the rights for areas that are highly under-penetrated and offer a huge opportunity to raise the volume and gain market share.
This acquisition is in line with Varun Beverages’ strategy to expand into contiguous territories for garnering better operating leverage and asset utilisation through economies of scale.
Varun Beverages, one of the largest franchisee of PepsiCo in the world (outside the USA), produces and distributes beverages like Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Tropicana Slice and Nimbooz. In addition, the company produces and distributes packaged drinking water under the brand Aquafina.
