Varun Beverages rallies 9% on strategic deal with PepsiCo
It is part of VBL's strategy to expand product portfolio through its relationship with PepsiCo.
By ETMarkets.com | Updated:
NEW DELHI: Shares of Varun Beverages shot up 9 per cent in Friday's trade after the company entered into strategic partnership with PepsiCo for the larger Tropicana portfolio along with Gatorade and Quaker Value-Added Dairy in territories across North and East India.
This is part of VBL's strategy to expand its product portfolio through its valued relationship with PepsiCo.
Following the development, the counter witnessed block deals in opening trade, ET Now reported.
The stock rose 8.98 per cent to hit a high of Rs 750.40 on BSE. However, it pared the gains and settled 1.74 per cent up at Rs 700.50 on Friday.
According to the deal, PepsiCo is transferring distribution of its juices portfolio to its biggest bottler in South Asia, Ravi Jaipuria-promoted RJ Corp, two people with direct knowledge of the matter said. Varun Beverages is a RJ Corp group company.
Industry insiders view this deal as a precursor to the beverages and snacks maker divesting its capital-intensive business nationally to franchisees.
Varun Beverages had recently signed an agreement with PepsiCo India's previously franchised sub-territory in Jharkhand.
The company is among the largest franchisee in the world (excluding US) of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo.
This is part of VBL's strategy to expand its product portfolio through its valued relationship with PepsiCo.
Following the development, the counter witnessed block deals in opening trade, ET Now reported.
The stock rose 8.98 per cent to hit a high of Rs 750.40 on BSE. However, it pared the gains and settled 1.74 per cent up at Rs 700.50 on Friday.
According to the deal, PepsiCo is transferring distribution of its juices portfolio to its biggest bottler in South Asia, Ravi Jaipuria-promoted RJ Corp, two people with direct knowledge of the matter said. Varun Beverages is a RJ Corp group company.
Industry insiders view this deal as a precursor to the beverages and snacks maker divesting its capital-intensive business nationally to franchisees.
ADVERTISEMENT
Varun Beverages had recently signed an agreement with PepsiCo India's previously franchised sub-territory in Jharkhand.
The company is among the largest franchisee in the world (excluding US) of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
