PepsiCo Extends India Bottling License to 2049, Lifts Restrictive Clause
Varun Beverages secured a ten-year extension of its exclusive PepsiCo bottling and trademark license in India to April 2049, while removing restrictions on pursuing non-PepsiCo operations. The India-based bottler reported FY revenue of Rs222.25bn, up 8.5%, and Q1 net profit rose 20.1% year-over-year to Rs8.78bn.
1. Ten-Year License Extension in India
The revised exclusive bottling and trademark licence between PepsiCo and Varun Beverages in India has been extended by ten years to 30 April 2049, up from its original expiry on 30 April 2039, with the amendment taking effect on 21 May.
2. Removal of Operational Restrictions
The new agreement eliminates the earlier requirement that Varun Beverages act solely as a special purpose vehicle for PepsiCo business, allowing the India-based bottler to pursue non-PepsiCo operations alongside its core franchise.
3. Financial and Growth Highlights
Varun Beverages delivered FY revenue of Rs222.25bn (up 8.5%) and net profit of Rs30.62bn (up 16.2%), and Q1 revenue grew 18.1% to Rs65.74bn with net profit up 20.1% to Rs8.78bn, driven by international expansion through acquisitions like South Africa-based Crickley Dairy for R238m and Twizza.