Varun Beverages Limited , a key player in the beverage industry, has announced plans for a significant expansion of its business activities. The company has issued a postal ballot notice seeking shareholder approval to alter its Memorandum of Association, allowing it to venture into new sectors including alcoholic beverages and renewable energy.

Proposed Business Expansions

Varun Beverages is seeking to expand its operations into three main areas:

1. Packaging Materials: Manufacturing and marketing of packaging materials such as preforms, bottles, and containers.
2. Renewable Energy: Generating and supplying solar, wind, and other forms of renewable energy.
3. Alcoholic Beverages: Manufacturing, processing, and distributing Ready-to-Drink (RTD) and alcoholic beverages, including beer, wine, liquor, spirits, brandy, whisky, gin, rum, and vodka, both in India and abroad.

Voting Process and Timeline

Varun Beverages has outlined the following timeline for the voting process:

Shareholders will be able to cast their votes through remote e-voting during this period.

Board Approval and Rationale

The Board of Directors of Varun Beverages approved this proposal at their meeting held on October 29, 2025. The company cites the growing popularity of RTD and alcoholic beverages as a key factor behind this expansion opportunity.

Implications for Shareholders

This move represents a significant shift in Varun Beverages' business strategy. If approved, it would allow the company to diversify its portfolio beyond its current focus on non-alcoholic beverages. The expansion into renewable energy also signals the company's intent to participate in the growing sustainable energy sector.

Shareholders are advised to carefully consider the implications of this expansion on the company's future direction and potential risks and opportunities associated with entering new markets.

Conclusion

The proposed alterations to Varun Beverages' Memorandum of Association mark a potentially transformative moment for the company. As the voting process unfolds, all eyes will be on the shareholders' decision, which could set the stage for a new chapter in Varun Beverages' corporate journey.

Shareholders are encouraged to participate in the voting process and make their voices heard on this significant corporate action.

Varun Beverages Limited (VBL), a key player in the beverage industry and one of the largest franchisees of PepsiCo worldwide, anticipates robust growth in the coming quarters, buoyed by improved weather conditions and strong international performance.

Projected Growth and Capacity

The company projects early-to-mid teens growth for its international operations in the next quarter. This optimistic outlook is supported by VBL's statement that it can handle a 50% growth in capacity, indicating strong operational readiness to meet increased demand.

Q3 CY2025 Financial Highlights

Despite challenging weather conditions in India, VBL has reported steady performance for the third quarter of 2025:

Key Performance Indicators

• International Growth: International volumes grew by 9.0%, led by a strong performance in South Africa.
• Product Mix: CSD constituted 74%, NCB 4%, and Packaged Drinking Water 22% in Q3 CY2025.
• Gross Margins: Improved by 119 basis points to 56.7% in Q3 CY2025.
• EBITDA Margins: Slightly declined by 53 basis points to 23.4% in Q3 CY2025.

Strategic Developments

1. Kenyan Expansion: VBL is incorporating a wholly-owned subsidiary in Kenya to manufacture, distribute, and sell beverages, furthering its international presence.

2. Product Diversification: Certain African subsidiaries of VBL will test market beer through an exclusive Distribution Agreement with Carlsberg Breweries A/S for their Carlsberg brand.

3. Expansion into Alcoholic Beverages: VBL is adding alcoholic beverage business to its main objects, eyeing opportunities in Ready To Drink (RTD) and various alcoholic beverages.

4. Manufacturing Joint Venture: Formation of White Peak Refrigeration Private Limited in India, a joint venture to manufacture visi-coolers and other refrigeration equipment.

Outlook

Ravi Jaipuria, Chairman of Varun Beverages Limited, expressed confidence in the company's growth trajectory: "While the extended monsoon season impacted consumption trends in India, we remain confident in the significant long-term potential of the domestic beverage industry. With low per capita consumption and rising penetration in semi-urban and rural markets, the opportunity for growth continues to be immense."

VBL's ongoing investments in capacity expansion, distribution reach, and cold-chain infrastructure are expected to strengthen on-ground execution, positioning the company to capture demand recovery in the upcoming season and deliver sustainable growth for stakeholders.

As Varun Beverages continues to expand its international footprint and diversify its product portfolio, the company appears well-positioned to capitalize on improving market conditions and drive growth across its operations.