Varun Beverages Limited (BSE: 540180, NSE: VBL EQ), a key player in the beverage industry, today announced the inauguration of its greenfield production facility at Pathankot by the Hon'ble Chief Minister of Punjab. This facility will create in-house production capacity for Tropicana fruit juices, dairy based products, carbonated soft drinks, Aquafina water, Gatorade and Lipton ice tea. Spread over ~41 acres in Pathankot district of Punjab, it will be the first fully backward integrated facility in India to manufacture the complete range of above products at a single location.
According to Mr. Ahmed ElSheikh, President & CEO, PepsiCo India "We are grateful to the Government of Punjab under the guidance of the Hon'ble Chief Minister for their support to this project. PepsiCo started its India journey from Punjab over 30 years ago and this latest investment by the PepsiCo ecosystem is a reiteration of our commitment to our Indio business growth story. PepsiCo's new facility will act os a hub to address the growing demand for our well-loved beverage portfolio amongst consumers in the State and beyond."
Commenting on the development, Mr. Ravi Jaipuria, Chairman, Varun Beverages Ltd. said, "The inauguration of this production facility is in-line with our endeavor to strengthen our presence in fast growing categories. The addition of these product categories to our portfolio will result in better asset usage as the seasonality in these categories is relatively lower and will augment our return ratios and profitability metrics going forward. The facility is strategically located close to target markets which will reduce time to market and enable optimization of freight & logistics costs, aiding margin expansion. The creation of another world class production facility will be a huge boost for the local economy creating and securing jobs well into the future."
Shares of Varun Beverages Ltd was last trading in BSE at Rs.818.25 as compared to the previous close of Rs. 821.6. The total number of shares traded during the day was 2768 in over 187 trades.
The stock hit an intraday high of Rs. 820.4 and intraday low of 810. The net turnover during the day was Rs. 2254708.