Varun Beverages shares rise 2% as company to acquire S African firm Crickley Dairy; all you need to know

The Beverage Company Proprietary Ltd (Bevco) "has executed an agreement dated March 17, 2026, for the acquisition of a 100 per cent equity stake of Crickley Dairy Proprietary Ltd, which is incorporated in South Africa", said a regulatory filing by Varun Beverages Ltd (VBL).

It will acquire it from Clark Holdings Proprietary Ltd, the parent entity of Crickley Dairy Proprietary.

This acquisition aligns with the company's strategy to diversify its product portfolio into new categories, including value-added dairy and juice-based drinks.

However, the deal will be subject to regulatory and other approvals, including from the Competition Commissions of South Africa, VBL said.

Earlier in December, Varun Beverages, PepsiCo's largest franchise bottler, announced it would completely acquire South Africa-based firm Twizza through Bevco.

In March 2024, VBL acquired The Beverage Company, South Africa, along with its wholly owned subsidiary, BevCo.

This acquisition allowed the company to consolidate its presence in franchised territories in South Africa, Lesotho, and Eswatini, as well as territories with distribution rights in Namibia, Botswana, Mozambique, and Madagascar.

Recent updates

Last week, Varun Beverages said in its latest annual report that the Indian soft drinks industry, which was badly hit in 2025, is well-positioned for a healthy recovery this year.

Moreover, the industry continues to see a gradual "diversification of consumption" with carbonated soft drinks remaining the largest category, while non-carbonated beverages, juice-based drinks, sports and energy drinks continue to gain traction, it said.

Brands are expanding their portfolios with low- and no-sugar options, juice-based functional beverages, and differentiated offerings, enabling them to cater to evolving consumer preferences.

"The growing focus on health is further driving innovation in organic and natural ingredient-based drinks, supporting sustained category relevance and growth," it said.

These segments are being supported by evolving consumer preferences, broader product portfolios, and improved availability across retail channels, as brands expand their offerings to cater to a wider range of consumption occasions, Varun Beverages Ltd (VBL) said.

VBL stated that young demographics, rising disposable income, and growing urbanisation will contribute to the industry's growth.

"Looking ahead, the Indian soft drinks industry remains well-positioned for a healthy recovery, with a stronger season on the horizon, supported by low per-capita consumption, favourable demographics, and sustained investments in manufacturing capacity, distribution reach, and cold-chain infrastructure," VBL said.

While addressing shareholders, VBL's Promoter & Non-Executive Chairman Ravi Jaipuria said the company remains confident of the long-term growth potential of the beverage industry in India and across its international markets.

"Low per capita consumption, favourable demographics, expanding distribution infrastructure, and increasing penetration across semi-urban and rural markets continue to provide a strong foundation for growth," Jaipuria said.

Varun Beverages' December quarter earnings

Varun Beverages on Tuesday reported a 32.9% increase in consolidated net profit to ₹260 crore for the December quarter 2025 (Q4 FY26), helped by volume growth.

The company, which follows the calendar year as its financial year, had posted a net profit of ₹195.64 crore for the October-December period a year ago, according to a regulatory filing from Varun Beverages Ltd (VBL).

Revenue from operations was up 13.54% to ₹4,334.79 crore in the December quarter 2025. It stood at ₹3,817.61 crore a year ago.

Consolidated sales volume in the quarter grew by 10.2% to 237.1 million cases from 215.1 million cases in Q4 CY2024. Sales volumes in India grew 10.5%, and international markets grew by 10%," said an earnings statement by the company.

Its EBITDA in the quarter increased by 10.2% to ₹639.26 crore in Q4 2025 from ₹579.97 crore in Q4 2024.

Total profit for the year 2025 for VBL, one of the largest franchisees of PepsiCo in the world (outside the US), was at ₹3,062.04 crore, up 16.23%. It was at ₹2,634.28 crore in 2024.

"PAT increased by 16.2%, driven by volume growth, lower finance costs and higher other income, which includes interest on deposits in India and favourable currency movement in the international territories," it said.

About Varun Beverages

Varun Beverages Limited (“VBL” or the “Company”) is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world (outside the USA).

VBL has been associated with PepsiCo since the 1990s and has, over two and a 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.

VBL has been granted franchises for various PepsiCo products across 27 states and 7 union territories in India (responsible for nearly 90% of the 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 nearly 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 cream, and healthcare.