Varun Beverages enters ₹1,100-crore alcobev market with KIVA Spirits; appoints ex-Diageo executive Prathmesh Mishra as CEO

Varun Beverages is entering India’s alcoholic beverages market with a wholly owned subsidiary focused on ready-to-drink (RTD) alcoholic beverages.

The company’s board approved the incorporation of KIVA Spirits and Company Ltd on Tuesday, subject to requisite regulatory approvals. The proposed subsidiary will have an authorised share capital of ₹10 crore and paid-up equity capital of ₹9 crore, funded in cash by Varun Beverages.

The company said the proposed subsidiary would undertake the RTD and alcoholic beverages business “subject to receipt of applicable requisite approvals.”

KIVA Spirits to target RTD alcohol segment

“The Board of Directors of the Company at their meeting held today approved to incorporate a wholly-owned subsidiary company in India, inter-alia to carry on the business of Ready to Drink (RTD), Alcoholic Beverages, subject to receipt of applicable requisite approvals,” Varun Beverages said in a regulatory filing.

The entry gives the Ravi Jaipuria-led RJ Corp company a new growth avenue beyond its core soft-drink and non-alcoholic beverage operations. India remains a high-volume alcoholic beverages market even as consumption growth in several global markets has moderated.

According to JM Financial, India’s alcoholic beverages industry has a market size of around 1.1 billion cases. Beer and Indian-made foreign liquor (IMFL) each account for about 400 million cases, highlighting the scale of the domestic opportunity.

Mishra brings 30 years of consumer industry experience

Varun Beverages has appointed Prathmesh Mishra as chief executive officer and managing director of KIVA Spirits, with more than three decades of consumer-sector experience.

Mishra most recently served as managing director for Korea and Japan at Diageo. Before that, he spent seven years as chief commercial officer at Diageo India and three years as chief operating officer-West.

He previously spent 14 years at Pernod Ricard India. Mishra also served as chairman of Royal Challengers Bengaluru, where he was involved in the franchise’s commercial expansion.

Varun Beverages’ move follows its growing engagement with the broader beverage ecosystem. Late last year, it partnered with Carlsberg Breweries to distribute its products in Africa.

Separately, the company’s board approved plans for a joint venture in Tunisia. The proposed entity will manufacture and distribute carbonated soft drinks, juices, water and dairy products, extending Varun Beverages’ international footprint.

Meanwhile, Varun Beverages shares were trading nearly 2% lower at ₹429.30 apiece on the NSE in morning trade on Wednesday, despite the company's aforementioned announcements.