Summary:
PepsiCo’s key bottling partner Varun Beverages Ltd (VBL) has announced the formation of a joint venture with White Peak Refrigeration Pvt. Ltd. to manufacture visi-coolers and refrigeration equipment in India. The move comes shortly after the company reported its Q1 FY26 results, with revenue rising 2.5% YoY to ₹7,017.4 crore and net profit up 5% YoY at ₹1,317 crore, despite a dip in sales volumes due to unseasonal rainfall.
Joint Venture Details
Varun Beverages, PepsiCo’s second-largest global bottling partner, has incorporated a new company in partnership with White Peak Refrigeration Pvt. Ltd. The JV will focus on manufacturing visi-coolers and refrigeration equipment, critical infrastructure for beverage storage and distribution.
The company noted that this development builds on its earlier disclosure in July under SEBI’s LODR regulations, where it had already shared initial details with the stock exchanges.
By investing in local manufacturing capacity, VBL aims to strengthen its backward integration strategy, reduce dependency on external suppliers, and enhance supply chain resilience.
Q1 FY26 Performance
The JV news comes on the heels of VBL’s financial results for the quarter ended June 2025 (Q1 FY26 / Q2 CY2025).
Key Highlights:
- Sales Volumes: Consolidated sales volumes fell 3% YoY to 389.7 million cases, hit by unseasonal rains across India.
- Domestic vs. International: Domestic volumes declined 7.1%, while international volumes grew 15.1%, led by South Africa (+16.1%).
- Revenue: Consolidated revenue increased 2.5% YoY to ₹7,017.4 crore, aided by operational efficiencies.
- Net Profit: Profit after tax rose 5% YoY to ₹1,317 crore, supported by lower finance costs.
Strategic Outlook
Industry watchers note that refrigeration is a vital element in beverages distribution, ensuring product quality and availability across retail channels. With this JV, VBL is expected to secure reliable access to cooling equipment, which could prove crucial in scaling up volumes once weather-related disruptions normalize.
While short-term headwinds such as rainfall-driven volume declines impacted the latest quarter, strong international growth and steady profitability indicate VBL’s ability to adapt and sustain margins.
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