Varun Beverages Extends PepsiCo India License to 2049 as African Push Lifts Revenue to $2.4 Billion
Updated
Updated · Business Insider Africa · May 24
Varun Beverages Extends PepsiCo India License to 2049 as African Push Lifts Revenue to $2.4 Billion
1 articles · Updated · Business Insider Africa · May 24
Summary
A new agreement effective May 21 extends Varun Beverages’ PepsiCo bottling rights in India by 10 years to April 2049 and drops limits on pursuing non-PepsiCo businesses.
Rs222.25 billion in 2025 revenue—about $2.4 billion—helped underpin the move, with international volumes up 9% in the first nine months as African demand offset weather-hit consumption in India.
Africa has become the company’s main expansion engine: it now operates across seven countries there, holds wider distribution rights, and is setting up a wholly owned manufacturing and distribution unit in Kenya.
Recent deals and projects include Pepsi bottling acquisitions in Ghana and Tanzania, a $50 million plant in the Democratic Republic of the Congo, a $40 million Zimbabwe complex, and South African dairy and soft-drink buys.
The looser PepsiCo terms give Ravi Jaipuria’s group more room to diversify beyond soft drinks, building on its Carlsberg partnership and broader push into dairy, snacks and alcoholic beverages across Africa.
Why is Varun Beverages' stock lagging despite a multi-billion dollar African push and soaring profits?
Is India's 'Cola King' biting off more than he can chew with his massive African expansion?
Varun Beverages Accelerates Global Growth: License Extension, Africa Push, and Product Diversification in 2026
Overview
Varun Beverages Ltd (VBL) has secured a major strategic boost by extending its exclusive bottling and trademark license with PepsiCo in India until 2049. This long-term agreement deepens the partnership and gives VBL greater stability and a clear path for future growth. Importantly, the renewed deal removes previous restrictions, now allowing VBL to pursue non-PepsiCo ventures. This change is a significant advantage, giving VBL more freedom to partner with other brands and diversify its revenue streams. Together, these developments position VBL for stronger growth, resilience, and new opportunities in the years ahead.