Popping The Cork With VBL: 480% Returns In Just 5 Years
If you had invested ₹1 lakh in VBL in August 2017, then you could have had ₹5.8 lakhs today! This multibagger gave its investors 480% returns in just 5 years. Here’s a closer look at the company.
🍹 Stock: Varun Beverages Ltd.
🍹 NSE: $VBL
🌱 About the Company
The story of RJ Corp began more than three decades ago, with a vision that remained ahead of the times. Under the dynamic leadership of Ravi Kant Jaipuria, the company has risen to commendable heights. Varun Beverages is a part of the RJ group, which is also the largest franchisee for Pizza Hut, KFC, Cream Bell and Costa Coffee in India.
🪢 PepsiCo Tie-Up
Varun Beverages has been associated with PepsiCo since the 1990s and is a key player in the beverage industry. It is also one of the largest franchisees of PepsiCo in the world. In 2019, VBL concluded the acquisition of franchise rights from PepsiCo for a national bottling, sales and distribution footprint in the Southern and Western parts of India (seven states and five union territories). With these acquisitions, the company has significantly reinforced its partnership with PepsiCo, which now accounts for over 80% of India’s beverage sales.
The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo. These include Pepsi, Seven-up, Mirinda, Mountain Dew, Tropicana Juices etc.
🌏 Countries With VBL
VBL’s operations take place in 6 countries:
◾ 3 in the Indian Subcontinent—India, Sri Lanka and Nepal.
◾ 3 in the African Continent—Morocco, Zambia and Zimbabwe.
♻️ Recycling Initiative
The company has 32 state-of-the-art manufacturing facilities in India and 6 on international soil. They are engaged with GEM Enviro Management Pvt. Ltd. for phased implementation of 100% recycling of used PET bottles through collection from end users by placing dustbins opposite vending machines and direct collection from institutions.
On August 23, 2017, the shares of the company were trading at ₹158.31, while they were priced at ₹919.75 as of August 22, 2022.