Introduction :

 Varun Beverages Limited (“VBL” or the “Company”) is a key player in beverage industry and one of the
largest franchisee of PepsiCo in the world (outside USA) has its headquarter in Gurgoan , Haryana, India.
 VBL has been associated with PepsiCo since the 1990s & incorporated in the year of 1995 and have over
two and half decades consolidated its business association with PepsiCo, increasing the number of licensed
territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo
beverages, introducing various SKUs in the portfolio, and expanding the distribution network.
 The Company manufactures, distributes and sells a wide range of carbonated soft drinks (CSDs), as well as
a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under
trademarks owned by PepsiCO.
 PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-
Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo NCB brands produced and
sold by the Company include Tropicana Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz,
Gatorade as well as packaged drinking water under the brand Aquafina.

 VBL has been granted franchisees for various PepsiCo products across 27 States and 7 Union Territories in
India (responsible for ~90% beverage sales volume of PepsiCo India). VBL has also been granted the
franchise for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe. India is the largest
market and contributed ~80% of revenues from operations (net) in Fiscal 2022.
 VBL is part of the RJ Corp group, a diversified business conglomerate with interests in beverages, quick-
service restaurants, ice-creams and healthcare. VBL’s Promoter and Chairman Mr. Ravi Jaipuria has an
established reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCo’s
International Bottler of the Year award, which was awarded in 1997. He was also awarded the
‘Distinguished Entrepreneurship Award’ at the PHD Annual Awards for Excellence 2018.
 Companies Vision:

WE WILL BE THE MOST ADMIRED BEVERAGE COMPANY IN ALL OUR

MARKETS.

Companies Mission:

“WHILE REFRESHING BILLIONS OF CONSUMERS WITH A VAST PORTFOLIO OF

BEVERAGES TOUCHING ALL AGE GROUPS, WE SHALL ENSURE A SUITABLE
ECOSYSTEM WITH A POSITIVE IMPACT ON OUR PLANET AND WELL BEING.”

Evolution of the Company

1995

 Incorporation of our Company as public limited company.

1996

 VBL started operation at Jaipur in 1996

1999

 Started operations in Alwar, Jodhpur and Kosi

2004

 Merger of DBL with our Company pursuant to the order of High Court of Delhi dated October 6, 2004

2012

 Merger of VBIL with our Company pursuant to the order of High Court of Delhi dated ch 12, 2013

2013

 Our Company acquired the business of manufacturing and marketing of soft drink beverages in Delhi, India
 2015

 Business transfer agreement through which our Company acquired Pepsi India’s business of manufacturing,
marketing, selling and distributing soft drink beverages and syrup mix in the Indian states of Uttar Pradesh,
Uttarakhand, Himachal Pradesh, Haryana and the Union Territory of Chandigarh

 Incorporation of Varun Beverages (Zimbabwe) (Private) Limited

2016

 Our Company acquired entire shareholding of Arctic International Private Limited in Varun Beverages (Zambia)
Limited.

 VBL was successfully listed on Indian Stock Exchanges – NSE & BSE.

2017

 Increased stake in Zambia subsidiary, Varun Beverages (Zambia) Limited, to 90% from 60%.

 Concluded the acquisition of PepsiCo India’s previously franchised territories of the State of Odisha and parts of
Madhya Pradesh along with two manufacturing units at Bargarh (Odisha) and Mandideep (MP).

2018

 Concluded the acquisition of PepsiCo India’s previously franchised territory of the State of Chhattisgarh, Bihar and
Jharkhand along with two manufacturing units at Cuttack (Odisha) and Jamshedpur (Jharkhand).

 Entered into a strategic partnership for selling and distribution of the larger Tropicana portfolio that includes
Tropicana Juices (100%, Delight, Essentials), Gatorade and Quaker Value-Added Dairy in territories across North
and East India.

 Established a green field production facility in Zimbabwe, an untapped market with huge potential.

2019

 Concluded the acquisition of PepsiCo India’s previously franchised sub-territories of the State of Maharashtra
(designated parts), Karnataka (designated parts) and Madhya Pradesh (designated parts).

 Concluded the acquisition of West and South India sub-territories from PepsiCo.

2021

 Incorporated a new subsidiary – Varun Beverages RDC SAS in the Democratic Republic of Congo.
 2022

 Entered into an agreement to distribute and sell Lays, Doritos and Cheetos for PepsiCo in the territory of Morocco.

 Commenced commercial production of Kurkure Puffcorn at the manufacturing plant in Kosi, Uttar Pradesh for
PepsiCo.
ABOUT FOUNDER CHAIRMAN

 Mr. Ravi Kant Jaipuria is the promoter and founding Chairman of Varun beverages Limited
 Mr. Jaipuria has three decades of hands-on experience in conceptualizing, executing, developing and
expanding the Food, Beverages and Dairy business in South Asia & Africa.
 He is the only Indian bottler to be awarded the PepsiCo “International Bottler of the Year” award in the
year 1997. It was presented at PepsiCo’s centennial year and the award was presented by Mr. Donald M.
Kendall, founder of PepsiCo Inc. in presence of Mr. George Bush, the 41st President of USA.
 He is hands on, well connected and respected entrepreneur of the business community in South Asia and
Africa.

Overview:

We are pleased to share that we have delivered exceptional performance throughout the year. Strong demand for
our products across markets and normalcy in day-to-day activities translated to solid volume growth in CY 2022.
Furthermore, our investments in the business, despite pandemicled disruptions in the previous years, combined
with significant expansion in the distribution network contributed to increased sales. We also undertook price hikes
on select SKUs and rationalized discounts & schemes to address the cost pressures we faced during the year. These
efforts, coupled with higher sales volumes and a favorable product mix, resulted in a 49% increase in our net
revenues in CY 2022. In terms of profitability, despite the challenges posed by higher costs of raw materials, we
witnessed limited impact on our gross margins. Our prudent raw material sourcing strategy, as well as selective
price increases on specific products, helped us to improve our realization per unit and mitigate the impact of rising

costs on our margins. In addition, higher operating leverage due to high volume growth led to better EBITDA
margins. On the balance sheet front, our leverage ratios remained healthy as we registered strong cash flows during
the year. We are delighted to state that on the product portfolio front, Sting has emerged as a key growth driver for
the Company. It has outperformed expectations this year, recording remarkable sales volume. Furthermore, our
value-added Dairy and Juices segment received a positive reception from consumers. We are confident that these
products will continue to drive growth for our Company in the future.

Successfully Commissioned New Capacities

A key In development, we successfully commenced operations at our greenfield facilities in Bihar for
manufacturing beverages and in Jammu & Kashmir for backward integration during the year. This strategic move
enabled us to not only strengthen our reach and customer base but also enhance our presence in the under
penetrated markets.

Signed an Agreement to Distribute & Sell “Lays, Doritos and Cheetos”

During the year, the Board of Directors approved the proposal to enter into an agreement by Varun Beverages
Morocco SA (a wholly owned subsidiary of the Company) to distribute & sell “Lays, Doritos and Cheetos” for
PepsiCo in the territory of Morocco with effect from January 2023.

Emphasis on Sustainability
As a leading beverage company serving over 1.4 billion customers globally through an extensive network of over
3 million retail outlets, we are committed towards safeguarding our environment and promoting sustainability in all
our operations. One of the key ways is that we are doing this by investing in PET recycling and implementing
measures to improve energy and water efficiency. Our goal is to have a net positive impact on the environment,
and we are continuously evaluating and implementing new ways to minimize our ecological footprint.

Message to Stakeholders
Throughout the year, we have achieved good results by streamlining our operations, expanding our distribution,
and broadening our product offerings. As we move forward, we will capitalize on our strong market position,
including our presence in high-growth markets, solid infrastructure and well-established distribution network. In
the coming years, we will focus on consolidating our position as a key player in the beverage industry and are
confident in our ability to create sustainable value for all our stakeholders in the future.

Vote of Thanks
I would like to express my deepest appreciation to all of our stakeholders including shareholders, investors,
bankers, and creditors, for their unwavering support. I would also like to express our appreciation to our employees
for their tireless efforts, dedication, and commitment to making our Company stronger. I also extend my sincere
gratitude to our Board for their invaluable guidance and insights that have been instrumental in helping us navigate
new opportunities and move forward with confidence.

Warm regards,

Ravi Jaipuria
Non-Executive Chairman
Nature of business for Varun Beverages in India:

1. Beverage Production:

Varun Beverages is primarily involved in the production of a wide range of beverages. This includes
carbonated soft drinks, which are popular among consumers for their refreshing and fizzy qualities.

2. Brand Partnerships:

The company often forms partnerships with major beverage brands, such as PepsiCo. These partnerships
involve the manufacturing and bottling of popular beverages under the brand's name. Varun Beverages plays a
crucial role in bringing these products to the market.

3. Manufacturing Facilities:

Varun Beverages operates manufacturing facilities equipped with state-of-the-art technology for beverage
production. These facilities adhere to quality standards to ensure the production of high-quality and safe
beverages.

4. Packaging:

The company is involved in the packaging of beverages. This includes designing and producing packaging
materials that are not only visually appealing but also functional in preserving the freshness and quality of the
beverages.

5. Distribution Network:

Varun Beverages has an extensive distribution network across India. This involves the transportation and
delivery of its beverages to retailers, supermarkets, convenience stores, and other points of sale. The company's
distribution strategy is crucial for ensuring that its products reach a wide and diverse consumer base.

6. Market Presence:
 Varun Beverages actively participates in the competitive beverage market in India. It monitors market trends,
consumer preferences, and competitor activities to adapt its strategies and offerings accordingly.

7. Quality Control:

Ensuring the quality and safety of beverages is a key aspect of Varun Beverages' business. The company
likely has quality control measures in place, including regular testing of raw materials and finished products to
meet regulatory standards.

8. Innovation and Product Development:

The company may engage in continuous innovation and product development to introduce new and appealing
beverages to the market. This could involve the creation of unique flavors, healthier options, or products
tailored to specific consumer demographics.

9. Compliance and Sustainability:

Varun Beverages likely adheres to regulatory and environmental standards. This includes compliance with
food safety regulations and incorporating sustainable practices in its operations, such as eco-friendly packaging
initiatives.

Conclusion,

Varun Beverages' nature of business in India encompasses the end-to-end process of beverage
production, packaging, and distribution, with a focus on maintaining high quality, forming strategic
partnerships with major brands, and adapting to market dynamics.
Products of Varun Beverages:

Beverages:
 Sales 2022
7%

23% Carbonated Soft Drinks

Packaged Drinking Water
Carbonated Soft Drinks

70%
Competitors Of Varun Beverages Ltd:

1. Coca-Cola India:

Overview: The Coca-Cola Company is a global beverage giant, and in India, it has a strong presence with a
diverse product portfolio. The company offers a range of carbonated beverages, non-carbonated drinks, and
juices.

Popular Brands: Coca-Cola, Thums Up, Sprite, Fanta, Minute Maid, and Maaza.

2. Parle Agro:

Overview: Parle Agro is an Indian beverage company known for its innovative and iconic brands. It has a
significant presence in the fruit-based beverages segment.

Popular Brands: Frooti (mango drink), Appy (apple drink), Bailley (packaged drinking water), and Saint
Juice.

3. Dabur India Ltd.:

Overview: Dabur is a diversified company with interests in health care, personal care, and food products. In
the beverage segment, Dabur is known for its fruit juices and health drinks.

Popular Brands: Real (fruit juices), Réal Activ (functional beverages), and homemade juices.

4. Hindustan Unilever Limited (HUL):

Overview: HUL is a leading consumer goods company in India with a wide product portfolio. While it is
known for its dominance in the home and personal care segments, it also has a presence in the beverage sector.

Popular Brands: Lipton (tea), Bru (coffee), Red Label (tea), and Brooke Bond (tea).

5. Bisleri International Pvt. Ltd.:

Overview: Bisleri is a well-known brand in the packaged drinking water segment. It is recognized for
providing safe and clean drinking water.

Popular Brands: Bisleri (packaged drinking water), Vedica (premium natural spring water).
 6. Manpasand Beverages:

Overview: Manpasand Beverages is an Indian company that focuses on producing fruit juices and
beverages.

Popular Brands: Mango Sip (mango drink), Fruits Up (carbonated fruit drinks), and Manpasand ORS.

7. Patanjali Ayurved Ltd.:

Overview: Patanjali is a consumer goods company that emphasizes Ayurvedic and natural products. It has
expanded its presence to include beverages.

Popular Brands: Patanjali Ayurveda offers a range of juices, herbal drinks, and Ayurvedic beverages.

These above mentioned companies are the major competitors for Varun Beverages
Limited in India.
31 Manufacturing Facilities in India 6 Manufacturing Facilities in International
Geographies .

Manufacturing Facilities:

INDIA INTERNATIONAL

Pathankot Phillaur Nepal- I

Nuh Panipat Nepal-II

Greater Noida I Greater Noida II Srilanka

Jainpur Bazpur Morocco

Sathariya Sathariya II Zambai

Kosi Sandila Zimbabwe

Jodhpur Bhiwadi

Mandideep Jamshedpur

Cuttack Kolkata

Guwahati Unit I & II Goa

Tirunelveli Dharwad

Bharuch Begusarai

Aurangabad Mahul

Nelamangala Palakkad

Mamandur Sangareddy

Sri City
Manufacturing Proficiencies:

As on December 31, 2022, we have a total of 31 plants across our territories, with state-of-the-art technologies .
FuAwards & Achievements:

Business Brand Award CFI.CO (UK) for the 4th Consecutive Year for

for Best Corporate Governance – 2022. Best FMCG Corporate Governance (India) 2018-22.

Business Leader Awards Golden Peacock National Quality Award – 2022.

for Best Corporate Governance Practices – 2022.

India Achievers’ Award 2022 PepsiCo Award for Bigger-Better-Stronger for Best
Corporate Governance. Partnership -2022.

National Best Employer – 2019. Best Employer Sri Lanka – 2019

Future plans:
About Soft Drinks (Beverages) Industry:

Introduction:
The non-alcoholic beverages industry is involved in the production and marketing of all beverages which are free
from alcohol. This can range from products such as water, tea, and coffee to sweet drinks like soft drinks and
juices. The industry provides not only ready-to-drink beverages but mixes and concentrates as well. One segment
that all the biggest companies service is bottled water, which is the largest segment of the industry globally.
Between convenience, taste preference, and sometimes no other source of potable water, the bottled water industry
is a staple of the non-alcoholic beverages market.

The largest companies involved in the market operate in multiple sub-segments. Nestlé, the largest of such
companies, has brands in water, coffee and tea, and dairy beverages. Other giants of the industry like PepsiCo and
Coca-Cola likewise have products spanning the width of sub-segments.

1. Carbonated Soft Drinks (CSD):

Cola drinks like Coca-Cola and Pepsi continue to dominate the carbonated soft drinks market.

Despite concerns about the health impacts of sugary beverages, colas remain popular, especially among the
youth and urban population.

These companies often introduce limited edition or seasonal flavors to keep consumers engaged.

2. Non-Carbonated Beverages:

There is a growing demand for non-carbonated alternatives, including fruit juices, iced tea, flavored water, and
energy drinks.

Health-conscious consumers are driving the demand for beverages with natural ingredients, reduced sugar
content, and functional benefits.

3. Health and Wellness Trends:

In response to the increasing emphasis on health and wellness, soft drink manufacturers are diversifying their
product portfolios.

Low-sugar, diet, and zero-calorie variants are becoming more common. Companies are also incorporating
natural sweeteners and fortifying drinks with vitamins and minerals.
4. Packaging Innovations:

Packaging plays a vital role in the soft drinks industry. Companies are investing in sustainable and eco-friendly
packaging solutions to address environmental concerns.

PET bottles, cans, and tetra packs are popular choices. Some companies are experimenting with novel packaging
designs to enhance consumer appeal.

5. Distribution Strategies:

Soft drinks are distributed through extensive networks that reach both urban and rural areas.

Distribution channels include traditional retail outlets, supermarkets, convenience stores, vending machines,
and e-commerce platforms.

The accessibility of soft drinks in various formats contributes to their widespread availability.

6. Advertising and Marketing Strategies:

Advertising and marketing are critical components of the soft drinks industry, with companies investing heavily
in promotional campaigns.

Celebrity endorsements, sponsorships of events, and interactive social media campaigns are common strategies to
connect with consumers.

Companies often tailor marketing efforts to suit regional preferences and cultural nuances.

7. Regulatory Compliance:

- The soft drinks industry is subject to regulations set by the Food Safety and Standards Authority of India
(FSSAI) to ensure product safety and quality.

- Compliance with labeling requirements and adherence to permissible ingredient levels are essential for market
access.

8. Economic Factors:
 Economic factors such as disposable income and purchasing power influence consumer spending on soft drinks.

Economic fluctuations and changes in consumer sentiment can impact overall sales and demand for premium
versus budget-friendly options.

9. Technological Advancements:

Technology plays a role in the production and distribution processes. Advances in bottling technology, quality
control, and supply chain management contribute to operational efficiency.

10. Impact of Global Trends:

Global trends, such as the rise of health-conscious consumer behavior, the push for sustainability, and the
impact of the COVID-19 pandemic, have repercussions in the Indian soft drinks market.

In conclusion,

The soft drinks industry in India reflects a dynamic landscape shaped by evolving consumer preferences,
health consciousness, and sustainability concerns. As global giants, local players, and regional flavors coalesce, the
market continues to diversify beyond traditional carbonated beverages. With a concerted focus on innovation,
health-conscious formulations, and eco-friendly packaging, industry players are adapting to changing trends. The
interplay of economic factors, technological advancements, and regulatory compliance underscores the complexity
of the market. As the industry navigates challenges and explores opportunities, staying attuned to these
multifaceted dynamics is crucial for both established and emerging players seeking success in India's vibrant soft
drinks sector.
Market Size/Value:
The global non-alcoholic beverages market was valued at over 1.2 trillion U.S. dollars in 2019 but shrank to just
over 1.1 trillion in 2020 due to the impact of the coronavirus outbreak. By 2025, the market is expected to peak at a
value of nearly 1.7 trillion U.S. dollars.

The United States were the biggest consumer of packaged beverages in the world in 2022, outpacing entire regions.
In terms of brands, Coca-Cola had the greatest brand value in the non-alcoholic beverages market.

Water was the most widely-consumed packaged beverage in the world in 2022, accounting for over 470 billion
liters in consumption that year, surpassing both soft drinks and alcoholic beverages.

Bottled water's popularity can be attributed to both convenience and tap water safety. In developed nations,
consumers choose bottled water primarily for taste and convenience, whereas in less developed nations, bottled
water consumption may be a necessity due to the lack of potable tap water.

Energy and sports drinks are one of the biggest trends in non-alcoholic beverages currently. Energy drinks contain
caffeine and legal stimulants with sugar protein and other additives to boost your energy. Sports drinks are
functional beverages containing carbohydrates minerals and electrolytes. They are designed to hydrate during
exercise.

In 2022, global energy and sports drinks sales stood at 166 billion U.S. dollars and are expected to increase to 233
billion dollars in 2027.
Major Players or Competitors in the Non-alcoholic Beverage Industry in India:

1. Coca-Cola India:

Products: Coca-Cola offers a wide range of products, including carbonated soft drinks (Coca-Cola, Thums Up,
Sprite), fruit juices (Maaza, Minute Maid), and water (Kinley).

Market Presence: Coca-Cola is one of the most recognized and widely distributed beverage brands in India, with
a strong market presence in urban and rural areas.

2. PepsiCo India:

Products: PepsiCo's portfolio includes popular carbonated drinks (Pepsi, Mirinda), non-carbonated beverages
(Tropicana, Slice), and snacks.

Diversification: In addition to beverages, PepsiCo has a significant presence in the snacks category with brands
like Lay's and Kurkure.

3. Parle Agro:

Products: Parle Agro is known for its fruit-based beverages, including Frooti (mango drink), Appy (apple drink),
and Appy Fizz (a sparkling apple drink).

Innovation: The company is often recognized for its innovative marketing strategies and introducing new
beverage variants.

4. Dabur:

Products: Dabur's Real brand offers a variety of fruit juices, nectars, and drinks made from natural fruits.

Focus on Ayurveda: Dabur, as a company, has a strong association with Ayurveda, and this is often reflected in
its product offerings.

5.Bisleri:

Products: Bisleri is a prominent player in the packaged drinking water segment in India, providing safe and
purified drinking water.
Distribution Network: The brand has a widespread distribution network, making it easily accessible across the
country.

6. Red Bull India:

Products: Red Bull is globally recognized for its energy drinks, providing a boost of energy and refreshment.

Target Audience: Red Bull often targets a younger demographic and is associated with sports and adventure
events.

7. Paper Boat (Hector Beverages):

Products: Paper Boat specializes in traditional Indian beverages, offering a nostalgic and authentic taste with
drinks like Aam Panna and Jaljeera.

Storytelling: The brand is known for its storytelling approach, connecting beverages with memories and cultural
experiences.

These are the few major players in the non- alcoholic beverages in India.