Varun Beverages Limited (VBL), one of the world’s largest franchisees of PepsiCo, has announced its official entry into the alcoholic beverages industry, marking a significant diversification move beyond its traditional non-alcoholic beverage portfolio. The company’s Board of Directors, in a meeting held on October 29, 2025, approved an amendment to its Memorandum of Association (MOA) to include the business of brewing, distilling, bottling, and trading alcoholic drinks such as beer, whisky, rum, gin, vodka, and wine.
Business Expansion Plans
As per the exchange filing, the board approved the inclusion of new clauses allowing the company to manufacture, process, blend, bottle, sell, and export alcoholic beverages both in India and overseas. This development will enable Varun Beverages to expand its product mix into the Ready-to-Drink (RTD) and spirits category — a move aligned with its parent RJ Corp’s broader diversification strategy.
The proposal will be placed before shareholders for approval through a postal ballot. Upon shareholder clearance, the company will have legal authority to commence operations in the alcoholic beverage space.
Financial Performance Snapshot (Q3 2025)
Varun Beverages also reported its unaudited financial results for the quarter ended September 30, 2025.
- Consolidated revenue from operations: Rs 50,477 crore
- Net profit after tax: Rs 7,451 crore
- Earnings per share (EPS): Rs 2.19
The company continues to post steady growth across India, Africa, and other emerging markets.
Global Expansion
In addition to entering the alcoholic beverages space, Varun Beverages has announced plans to incorporate a wholly-owned subsidiary in Kenya to expand its beverage business across Africa. The new entity, Varun Food and Beverages (Kenya) Limited, will be set up with a capital infusion of KSH 1.25 crore, fully owned by the parent company.
Conclusion
Founded in 1995 and part of the RJ Corp conglomerate, Varun Beverages currently manufactures and distributes popular PepsiCo brands such as Pepsi, 7UP, Mirinda, Mountain Dew, Slice, Tropicana, and packaged water Aquafina. Its latest move into the alcoholic beverages segment signals a major strategic shift, positioning the company for entry into one of India’s fastest-growing consumer categories.
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