Varun Beverages is expanding into India’s alcoholic beverages and ready-to-drink (RTD) segment after its board approved the incorporation of a wholly owned subsidiary, KIVA Spirits and Company, to undertake the business of alcoholic beverages, RTD products and allied categories, subject to applicable regulatory approvals.

The Ministry of Corporate Affairs has approved the incorporation of the new subsidiary, the PepsiCo bottler said in a regulatory filing. The company has appointed Prathmesh Mishra, who most recently served as Managing Director for Korea and Japan at Diageo, as Chief Executive Officer and Managing Director of KIVA Spirits.

The move marks a significant expansion for Varun Beverages beyond its core portfolio of carbonated soft drinks and non-alcoholic beverages in India.

Mishra brings extensive experience from the alcoholic beverages industry. In his most recent role at Diageo, he was responsible for business growth and strategic leadership across the Korean and Japanese markets.

Before moving to the international role, he held several senior positions at Diageo India. Mishra served as Chief Commercial Officer for seven years, overseeing the company’s commercial strategy and execution. Earlier, he worked as Chief Operating Officer–West for three years, with responsibility for regional operations and business performance, according to the regulatory filing.

Portfolio Expansion Continues
The entry into alcoholic beverages comes amid Varun Beverages’ efforts to widen its presence across beverage categories and geographies. Earlier this year, the company partnered with Japan’s Asahi Group to manufacture and distribute CALPIS, enabling the Japanese beverage maker to enter India’s non-alcoholic ready-to-drink market.

Varun Beverages had also expanded its presence in international alcohol distribution last year through an agreement with Carlsberg to exclusively distribute the brewer’s beer portfolio in select African markets.

Separately, the board approved the incorporation of a joint venture company in Tunisia to produce and distribute beverages, including carbonated soft drinks, juices, water and dairy products, subject to regulatory approvals.

The proposed entity, Varun Beverages Tunisia SA, will be 75 per cent owned by Varun Beverages, while Bevanda (Tunisia) will hold the remaining 25 per cent stake.

June Quarter Growth
The company reported a 15 per cent year-on-year rise in consolidated net profit to Rs 1,525.35 crore in the quarter ended June 2026, supported by double-digit volume growth across its Indian and international operations.

Varun Beverages, which follows the calendar year as its financial year, had reported a consolidated net profit of Rs 1,325.48 crore in the corresponding quarter a year earlier.

Revenue from operations rose 20.7 per cent year-on-year to Rs 8,650.57 crore during the quarter. Consolidated sales volume increased 19.8 per cent to 66.7 million cases in Q2 CY2026, driven by volume growth of 14.4 per cent in India and 38.4 per cent across its international territories.

The proposed entry through KIVA Spirits adds a new business vertical for Varun Beverages in India, while its planned Tunisian joint venture is expected to further extend the company’s international manufacturing and distribution footprint.