Revenue distribution by industry:

• Beverage production: 100% (2025)

TOP 3 markets and their percentage shares:

1. India: approx. 70%
2. African markets: approx. 15%
3. Sri Lanka: approx. 10%

Varun Beverages Limited is mainly engaged in beverage production and operates as one of the largest bottlers of PepsiCo products. The majority of revenues are generated in India, attributed to the strong market presence and high consumption of soft drinks in the region.

Additionally, the company has expanded its presence in African markets and Sri Lanka, leading to a diversification of revenue sources. These markets offer growth opportunities through increasing consumption needs and strategic partnerships.

Production Sites of Varun Beverages Limited:

Varun Beverages Limited operates production facilities in several countries, with a focus on India. The company also has production plants in other Asian countries as well as in Africa.

In India, VBL operates numerous bottling plants in various states, including Uttar Pradesh, Rajasthan, and Haryana. Internationally, VBL has production sites in countries such as Nepal, Sri Lanka, Morocco, and Zambia.

This geographical diversification enables VBL to efficiently respond to demand in different markets and optimize logistics costs.

Revenue growth (estimated): 18% (2024) Profit growth (estimated): 15% (2024)

Varun Beverages Limited pursues a growth strategy focused on geographical expansion and product diversification. The company plans to strengthen its presence in underserved markets both in India and internationally. This includes expanding production capacities and optimizing distribution networks to increase market penetration.

In addition, Varun Beverages is investing in expanding its product portfolio, especially by introducing new beverage varieties and adapting existing products to local tastes and preferences. This strategy is intended not only to promote revenue growth but also to reduce dependence on individual products.

Another focus is on improving operational efficiency through technological innovations and sustainable practices to optimize cost structure and enhance margins.

Main Imported Raw Materials: Sugar, PET resin, aluminum cans

Countries of Origin:

• Sugar: Brazil, Thailand
• PET resin: China, Taiwan
• Aluminum cans: United Arab Emirates, South Korea

Varun Beverages Limited, a leading bottler of PepsiCo beverages, imports various raw materials essential for the production of soft drinks. Sugar, one of the main ingredients, is mainly sourced from Brazil and Thailand, as these countries are among the largest sugar producers in the world.

PET resin, used in the production of plastic bottles, is predominantly imported from China and Taiwan, as these countries are leading in plastics production. Aluminum cans, used for beverage packaging, come from the United Arab Emirates and South Korea, which have a strong aluminum industry.

These import strategies enable Varun Beverages to benefit from competitive prices and high quality, which are crucial for maintaining their production capacity and market position.

Market share in India: Over 85% in the PepsiCo beverage segment (2024)
Revenue growth: 18% (2024)
EBITDA margin: 21% (2024)

Varun Beverages Limited (VBL) has a significant competitive advantage, especially through its dominant market position in the Indian beverage market as one of the largest bottlers of PepsiCo products. With a market share of over 85% in the PepsiCo beverage segment in India, VBL can benefit from economies of scale, allowing it to reduce costs and improve margins.

The company experienced strong revenue growth of 18% in 2024, attributed to successful expansion into new markets and increased demand for its products. The EBITDA margin of 21% demonstrates the company's efficiency in cost control and its ability to maximize profits.

Additionally, VBL benefits from long-term contracts with PepsiCo, securing a stable source of income and reducing the risk of market fluctuations. Continuous investment in infrastructure and distribution channels further strengthens its market position and supports future growth.

Institutional Investor Share: approximately 44% (2025, estimated based on historical data)

Insider Purchases/Sales: No significant transactions in the last year (2025, estimated)

The institutional investor share in Varun Beverages Limited is approximately 44%. This demonstrates the confidence of large investors in the company and may indicate a stable financial performance.

In 2025, no significant insider purchases or sales were reported. This could suggest that the management has confidence in the current company strategy and does not expect any short-term changes.

Market share of Varun Beverages Limited (VBL): Estimated at around 35% in the Indian beverage market (2025)

Main competitors and their market shares:

1. Coca-Cola India: around 40%
2. PepsiCo India: around 25%
3. Parle Agro: around 15%
4. Hector Beverages (Paper Boat): around 5%
5. Dabur India: around 5%

Varun Beverages Limited is one of the largest bottlers of PepsiCo products in India and has secured a significant market share through its close partnership with PepsiCo. This partnership represents a significant moat as it provides VBL with access to an established brand portfolio and an extensive distribution network.

Compared to its competitors, Coca-Cola India has the strongest moat due to its wide range of products and strong brand awareness. PepsiCo India, as a direct partner of VBL, shares many of the same advantages, giving VBL an indirect edge.

While Parle Agro and Hector Beverages have innovative products, they do not have the same market penetration or distribution network as the major international brands. Dabur India benefits from its strong presence in the health and wellness segment, which, however, does not carry as much weight in the beverage market.

Overall, Varun Beverages Limited has a solid moat through its strategic partnership with PepsiCo, but the international brands Coca-Cola and PepsiCo themselves are difficult to surpass due to their global presence and brand strength.

Revenue Growth: 20% (estimated for 2024) Profit Growth: 18% (estimated for 2024) Market Share in India: 25% (2023)

Varun Beverages Limited has experienced strong revenue and profit growth in recent years, attributed to successful expansion and increasing demand for its products. The company has further expanded its presence in India and holds a significant market share of 25%, highlighting its market leadership in the region.

Additionally, Varun Beverages has expanded its production capacities and invested in new technologies to enhance efficiency. These strategic investments could further support future growth. The strong brand partnership with PepsiCo also provides a stable foundation for future development and market stability.

Overall, the fundamental data and strategic direction of the company suggest that Varun Beverages Limited could be a promising investment for investors interested in long-term growth.

Dividend Yield: 0.8% (2024)

Varun Beverages Limited has regularly paid out dividends in the past. The dividend yield for the year 2024 was approximately 0.8%. This indicates that the company follows a dividend policy aimed at returning a portion of profits to shareholders, although the yield is rather moderate compared to other companies in the industry.

The reliability of dividend payment can be considered stable as Varun Beverages has consistently paid dividends in recent years. The company's financial health and its ability to generate profits support this distribution policy. Analysts expect that the company will continue to pay dividends unless significant negative economic developments occur.