Varun Bearridge is rising again – Varun Beverages is Rising Again

The stock of Varun Beverridge Limited (VBL) recorded a great boom in March after the calendar fell to 32 per cent in the first two months of the year 2025. The stock increased by about 24 per cent in March. The decline in stock came due to concerns related to competition and slow sales growth in Indian business. The stock was almost flat around 539 with a minor loss on BSE today.

However, the market believes that there has been a significant decline and the company has many opportunities to grow in both Indian and African markets. Sales may increase in short -term with the onset of summer, which is a very busy period for Pepsi’s bottling and distribution company.

The main concern for this stock is the Reliance Consumer Products (RCPL) re -launched in March 2023. According to JM Financial Research, Reliance’s company is expected to cross a sales figure of Rs 1,000 crore in 2024-25. It shows market participation in 7 crore crates and lower one digit. The entire market of India is of 2.4 billion boxes (crates) with Coca-Cola and PepsiCo dominated and their combined partnership is 80–85 percent.

Ilara Capital believes that while Campa is increasing the presence, it is limited to 10 rupees (200 mL) offer. Brokerage analyst Amit Purohit says that the influence in short term may be higher on local/regional brands than existing brands such as Pepsi and Coca-Cola. He said that Campa’s aggression (especially in Orange and Cola Flavor) is important in major areas, but its long -term success depends on the implementation which is a challenge. A large part of the revenue of Varun Beverages comes from brands such as Mountain Dews and Sting, which does not show the effect of Campa.

According to JM Financial Research, Campa has focused on states like Tamil Nadu, Andhra Pradesh, Telangana, Uttar Pradesh and West Bengal. The company’s strategy is that through aggressive prices, attention should be paid to such common consumers who are sensitive to the price and are less loyal to the brand.

Brokerage analyst Mehul Desai believes that sales are largely associated with small stock keeping unit (SKU) and out-of-hom consumption that have high susceptibility to the price, not loyalty to the brand. There is no offer of PepsiCo/Coca Cola. He says that the position of PepsiCo/Coca-Cola in the big SKU (750 mL/2.25 liters) remains strong.

First Published – April 1, 2025 | 10:41 pm IST

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