Varun Beverages Enters Alcoholic beverage Market

Varun Beverages is set to diversify into the alcoholic beverages sector with plans to establish a wholly owned subsidiary, KIVA Spirits and Company Limited. The proposed company will manufacture and market ready-to-drink (RTD) alcoholic beverages and other related products, subject to the required regulatory approvals.

KIVA Spirits is yet to be incorporated and will have a proposed authorised share capital of Rs 10 crore and paid-up equity capital of Rs 9 crore, to be funded by Varun Beverages.

The move comes as India’s alcoholic beverages market continues to expand, with the domestic industry estimated at around 1,100 million cases. Beer and Indian-made foreign liquor (IMFL) each account for about 400 million cases, highlighting the scale of the opportunity.

To lead the new venture, Varun Beverages has appointed Prathmesh Mishra as CEO and Managing Director of the proposed subsidiary. Mishra brings more than three decades of experience in the consumer and alcoholic beverages industry, including senior leadership positions at Diageo and Pernod Ricard.

Separately, Varun Beverages has also approved plans for a Tunisia joint venture to manufacture and distribute carbonated soft drinks, juices, water and dairy products.