Varun Beverages saw a strong revenue and volume growth in the quarter gone by. They also acquired PepsiCo franchisee rights in various other regions in the country. Ravi Kant Jaipuria, Chairman of the company spoke about the latest details and future outlook of the company.
Jaipuria said that PepsiCo has received almost a pan-India franchisee, in a deal size of Rs 1,850 crore. He added that the company will expand to 7 states and 5 union territories as a part of the deal.
Furthermore, he mentioned, “We are going to fund the deal partly by debt and internal accruals. So, approximately Rs 900 crore would be debt and Rs 900 crore would be through qualified institutional placement (QIP).”
According to him, revenue contribution from new franchises will be Rs 2,000 crore.