ONE OF THE EARLY BETS on India’s consumption story after liberalisation was Ravi Kant Jaipuria’s strategic moves around Varun Beverages and Devyani International that have put both among top players in their sectors. Varun Beverages, the largest franchisee of PepsiCo outside U.S., clocked net revenue of ₹16,042 crore in calendar year (CY) 2023, 21% more than the previous year; net profit surged 35% to ₹2,102 crore. Devyani International, despite slowdown in the quick service restaurant (QSR) segment, reported an 18% jump in net revenue to ₹3,556 crore. It reported a net loss of ₹9 crore compared to a net profit of ₹263 crore the previous year. Devyani International is the largest franchisee for Yum Brands in India which operates KFC, Pizza Hut and Taco Bell. Both are subsidiaries of RJ Corp which, along with Jaipuria family, owns 63.09% in Varun Beverages and 62.75% in Devyani International.

The growth of these two companies has propelled Jaipuria into the ₹1 lakh crore club. His net worth jumped from ₹83,783 crore in 2023 to ₹1.29 lakh crore in 2024. “Ravi Jaipuria represents India’s private consumption story. He has tapped these trends for two decades,” says Ankur Bisen, senior partner and head, Consumer, Food & Retail at retail consultancy Technopak Advisors.

Expansion Spree

In December 2023, Varun Beverages announced a plan to acquire South African beverages major The Beverage Company (BevCo) and its subsidiary, Little Green Beverages, for ₹1,320 crore. BevCo holds PepsiCo Inc. franchise rights in South Africa and its satellites Lesotho and Eswatini, along with distribution rights for Namibia and Botswana. Axis Securities says this will provide significant synergy benefits. “This sets the stage for a substantial, long-term, sustainable growth trajectory,” it adds. Varun Beverages has also incorporated a subsidiary, VBL Mozambique, SA, in Mozambique for distribution. It commissioned several manufacturing lines in 2023, including two greenfield plants in Bundi in Rajasthan and Jabalpur in Madhya Pradesh with a capital expenditure of ₹850 crore. It also expanded existing facilities in Pathankot, Kosi, Bharuch, Tirunelveli, Begusarai and Guwahati and acquired land in Buxar in Bihar and Kangra in Himachal Pradesh. “The commissioning of multiple greenfield and brownfield beverage manufacturing lines in CY 2023 was a significant step in enhancing operational capabilities,” Jaipuria said in the annual report for 2023. The company spent ₹2,100 crore on these expansions in 2023 that are expected to increase capacity by 45% over 2022.

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