Varun Beverages, Devyani International shares close higher amid reports of Ravi Jaipuria’s succession plan for RJ Corp
Upstox
2 min read • Updated: April 23, 2024, 5:04 PM
Summary
As per media reports, Ravi Jaipuria has drawn the succession plan for its $3 billion group. The Jaipuria family and RJ Corp hold around 62.91% stake in Varun Beverages and 62.74% in Devyani International.
Shares of $3-billion RJ Corp group companies, Varun Beverages and Devyani International, gained up to 2% on Tuesday, April 23, after media reports emerged that promoter Ravi Jaipuria has finalised a succession plan for the conglomerate.
Varun Beverages Ltd, which is PepsiCo’s second-largest bottler outside the US, gained up to 1.39% to hit a high of ₹1,450 per share on the NSE.
Another group company Devyani International, which operates KFC, Pizza Hut and Costa Coffee outlets in India, rose up to 2.3% to an intraday high of ₹166.35 on the NSE.
Jaipuria family and RJ Corp hold around 62.91% stake in Varun Beverages and 62.74% in Devyani International.
According to an Economic Times report, promoter Ravi Jaipuria has drawn the succession plan at the $3 billion group.
As per the plan, Jaipuria’s son, Varun Jaipuria, would get the food and beverages business while his daughter, Devyani Jaipuria, would head the healthcare and education businesses. The two companies have been named after Ravi Jaipuria’s children.
“Succession planning at RJ Corp has been established, including a road map for Varun and Devyani to take on strategic leadership roles,” Ravi Jaipuria was quoted as saying in the ET report.
Devyani would take the charge of the healthcare businesses, which comprise maternity hospital chain Cocoon and stem cell banking. Under the education business, Devyani would be handling Delhi Public Schools in Jaipur and Gurgaon, DPS International School in Gurgaon and Dharav High School in Jaipur.
Daily operations reportedly would continue to be run by professionals.
According to the report, Ravi Jaipuria, 70, will remain at the helm of RJ Corp as chairman. He would oversee overall growth and policies.
The succession planning has been framed to ensure continuity and stability in the company and infuse fresh perspectives into new leadership.
Varun beverages shares closed flat at ₹1,433 apiece, up 0.19%, on the NSE while Devyani International shares settled 1.96% higher at ₹166.2 apiece on the NSE.