1 week ago
Varun Beverages Forms Subsidiary to Enter India’s Alcoholic Drinks Market
Varun Beverages, which makes and sells PepsiCo drinks, wants to start selling alcoholic drinks in India.
It plans to do this through a new company called KIVA Spirits and Company.
KIVA may sell ready-to-drink alcoholic beverages and other related products.
The business cannot begin until it receives the required government approvals.
Varun Beverages has chosen Prathmesh Mishra to lead KIVA.
Mishra previously held senior jobs at Diageo in India, Korea, and Japan.
The company is also planning a beverage joint venture in Tunisia, where it would own 75 percent.
Varun Beverages reported higher profit, sales, and beverage volumes in the June 2026 quarter.
Varun Beverages approved KIVA Spirits and Company, a wholly owned Indian subsidiary for RTD alcoholic beverages and allied products.
The venture’s operations require applicable regulatory approvals; reports differ on whether incorporation approval from the Ministry of Corporate Affairs is complete.
Prathmesh Mishra, a former Diageo executive, was appointed KIVA Spirits’ chief executive officer and managing director.
The board also approved Varun Beverages Tunisia SA, with Varun Beverages owning 75% and Bevanda (Tunisia) holding 25%.
For the June 2026 quarter, net profit rose 15% to ₹1,525.35 crore and revenue increased 20.7% to ₹8,650.57 crore.
- Who
- Varun Beverages, KIVA Spirits and Company, Prathmesh Mishra, and Bevanda (Tunisia).
- What
- Varun Beverages approved an Indian alcoholic-beverages subsidiary and a Tunisia beverage joint venture.
- Where
- KIVA Spirits will target the Indian domestic market, while the joint venture will operate in Tunisia.
- When
- The announcements were made on Tuesday; the reported results cover the quarter ended June 2026.
- Why
- Varun Beverages is diversifying beyond soft drinks and expanding into additional beverage categories and markets.
Key facts
- New subsidiary
- KIVA Spirits and Company, a wholly owned subsidiary of Varun Beverages.
- Planned products
- Ready-to-drink products, alcoholic beverages, and allied products for India.
- Regulatory status
- The business remains subject to applicable approvals. One report says Ministry of Corporate Affairs approval for incorporation was granted, while another says prior approval remains required.
- Proposed capital
- KIVA Spirits has proposed authorized share capital of ₹10 crore and paid-up equity share capital of ₹9 crore, with shares valued at ₹10 each.
- KIVA leadership
- Prathmesh Mishra was appointed chief executive officer and managing director.
- Tunisia ownership
- Varun Beverages will hold 75% of Varun Beverages Tunisia SA, while Bevanda (Tunisia) will hold 25%.
- June 2026 results
- Net profit rose 15% to ₹1,525.35 crore and revenue increased 20.7% to ₹8,650.57 crore.
- Sales volume
- Consolidated sales volume increased 19.8% year over year to 66.7 million cases, with growth in India and international markets.
Quotes
Varun Beverages
Company making the announcement in an exchange filing
“The Board of Directors of the Company at their meeting held today approved: To incorporate a wholly-owned subsidiary company in India, inter-alia to carry on the business of Ready to Drink (RTD), Alcoholic Beverages and allied products, subject to receipt of applicable requisite approvals”
financialexpress.com
Sources
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