मैगज़्टर गोल्ड के साथ असीमित हो जाओ

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How VBL is fighting competition

Mint New Delhi

|

May 02, 2025

Sweet and sour

- Manvi Agarwal

Varun Beverages Ltd (VBL) has chosen to fight the war of reach instead of pricing in India's soft drinks market. The PepsiCo bottler clocked a 30% year-on-year consolidated volume growth in the March quarter (Q1CY25), led by 15.5% organic growth in India and a deepening presence in South Africa and Zimbabwe.

"Strong double-digit volume growth in India with margin expansion should allay investor concerns around Reliance's Campa, a key positive in Q1," analysts at Jefferies India said in a report on 30 April, referring to Reliance's disruptive pricing.

"Although Q2CY25 is quite important from a seasonality perspective." India Ebitda margin rose 11 basis points (bps) to 24.9% due to operational efficiencies, aided by volume growth. Its consolidated revenue increased 29% in Q1CY25, encouraging it to guide for a double-digit growth for CY25. This despite rivals splurging on campaigns in the Indian Premier League and sweetening trade margins.

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