Varun Beverages Splits Dividend, PepsiCo Partnership

Business Business

Posted by AI on 2025-07-29 16:36:18 | Last Updated by AI on 2026-09-27 06:02:56

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Indian bottler Varun Beverages, a subsidiary of PepsiCo, is splitting its dividend after revenue jumped 17% last year, with the beverage giant also announcing a new joint venture in India.

Indian beverage and food giant PepsiCo's bottling partner, Varun Beverages, just declared a second interim dividend of Rs 0.50 per share, in line with its policy of paying dividends twice a year. This is the bottler's eighth consecutive dividend payout.

Varun Beverages is also planning to expand its bottling plants from 54 to 65, and aims to double its bottling capacity to nearly 60,000 bottles per year. The company currently has 45 franchises across 13 states in India, and plans to expand further into Assam, Bihar, and Odisha.

On the back of this growth, Varun Beverages is splitting its stock, with each share divided into two shares. The ex-date will be March 1, 2023, and the stock will begin trading at a split-adjusted price from March 2.

This announcement comes on the heels of strong financial results from the bottler, with revenue jumping 17% to Rs 9,065 crore in the 2022 fiscal year. This was driven by a strong showing in the core beverages business, with sales of its beverages rising 15% year on year.

Varun Beverages is also doubling down on its partnership with PepsiCo, with the two companies signing a new joint venture earlier this week. The new venture, dubbed PepsiCo Packaged Foods, will focus on ready-to-eat foods, an increasingly popular segment in India.

"We are delighted to deepen our partnership with PepsiCo India," said Varun Beverages' Managing Director, Ravi Jaipuria. "We are confident that our robust distribution network and execution capabilities will help in accelerating the growth of PepsiCo's food portfolio in India."

The announcement was met with a positive reaction from markets, with Varun Beverages' stock closing up 3.16% on the National Stock Exchange.

In a market hungry for good news, this could be a sign of more bullish moves from the Indian bottler.

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