Shares of Varun Beverages gained 1.50% to Rs 1459.30 after the company announced the signing of an exclusive deal with PepsiCo to manufacture and package 'Cheetos' in Morocco.
The company's subsidiary Varun Beverages Morocco SA has entered into an exclusive snacks appointment agreement with Premier Nutrition Trading L.L.C. Dubai, subsidiary of PepsiCo Inc., for the manufacturing and packaging of Cheetos in the territory of Morocco.
Varun Beverages will invest Rs 100 crore to build a dedicated manufacturing facility. Commercial production is expected to begin on 1st May 2025.
"This appointment is in addition to the existing distribution agreement for PepsiCos snacks portfolio consisting of Lays, Cheetos, Doritos in the territory of Morocco, Varun Beverages said in a statement.
Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.
The company's consolidated net profit jumped 76.34% to Rs 143.76 crore on 20.99% increase in revenue from operations to Rs 2,731 crore in Q4 CY23 over Q4 CY22.
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