Varun Beverages: 7x rise in five years

Varun Beverages has featured in nearly every "Hot Stocks" list for a while now. It has generated a mind-boggling 74 per cent annualised return in the last three years and presently has a market capitalisation of over Rs 1 lakh crore. While we usually stay away from the finance paparazzi, the success of this beverage behemoth deserves introspection. So, here's what fueled Varun Beverage's rise to become an FMCG giant. PepsiCo's trust PepsiCo, the beverages and snacks giant, operates in India through its various franchises, Varun Beverage being one. However, the company's efficiency and consistent performance over the last decade made PepsiCo take notice and grant it the exclusive rights of manufacturing and distribution in almost the entirety of India. Performance over the years The company has witnessed a steady topline and bottomline growth Metric Dec '18 Dec '19 Dec '20 Dec '21 Dec '22 Revenue (₹ cr) 5228 8631 7660 9310 13772 Sales volume (cases; in cr) 34 49.3 42.5 56.9 80.2 Profit af