Homeearnings News

Varun Beverages sees strong demand; opts for lightweight PET bottles to tackle raw material inflation

earnings | IST

Varun Beverages sees strong demand; opts for lightweight PET bottles to tackle raw material inflation

Mini

“As the market is opening up, we are seeing a strong demand coming in, much stronger than pre-pandemic times,” said Ravi Kant Jaipuria, Chairman at Varun Beverages, in an interview with CNBC-TV18. He further mentioned that the company has mitigated its gross margin by light weighting its PET bottles, in a bid to tackle raw material inflation.

“As the market is opening up, we are seeing a strong demand coming in, much stronger than our pre-pandemic times,” said Ravi Kant Jaipuria, Chairman at Varun Beverages, in an interview with CNBC-TV18.

He believes that on-the-go market has started picking up whereas in-home consumption has stayed pretty strong.
“Both in-home as well as on-the-go market, both have picked up quite significantly and the festive season is looking very promising,” he said.
Also Read:
“Now you are seeing both sides’ consumption happening, which is great for QSR (quick service restaurants) and soft drinks,” he stated.
Varun Beverages posted its Q3CY21 earnings. Profit after tax (PAT) is up 60 percent but margin is under pressure owing to high global PET prices.
The company has mitigated its gross margin by light weighting its PET bottles, which will help the company in the long run, he noted.
“We see strong margins being maintained and our volumes are looking very good,” he said.
Geographical territories are demarcated for both Sapphire Foods India and Devyani International.
“Our territories are clearly demarcated. In Devyani International, we have four brands whereas Sapphire has two brands, which is KFC and Pizza Hut,” he said.
Market is growing at a huge pace, both the companies are expected to do well. “We have enough room and enough scope to grow,” he mentioned.
The company is looking at more than double digit growth, which will be very healthy for both the businesses.
For the full interview, watch the accompanying video.
Catch all market updates here.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Most Read

Market Movers

View All
Top GainersTop Losers
CurrencyCommodities
CompanyPriceChng%Chng