Ravi Jaipuria, Chairman, Varun Beverages feels juice market in India is expected to show strong double digit growth.
Varun Beverages share price gained 2 percent intraday Thursday as the company plans to set up a greenfield production facility for Tropicana juices.
The company will create in-house production capacity for Tropicana fruit juices, Quaker Oats milk based beverages and Gatorade.
"Spread over around 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 including carbonated soft drinks (CSD0 at a single location. The expansion is to take advantage of the growing demand of Juice based beverages for health conscious consumers," the carbonated soft drinks maker said.
Ravi Jaipuria, Chairman, Varun Beverages feels juice market in India is expected to show strong double digit growth.
"The addition of these product categories to portfolio will result in better asset usage as the seasonality in these categories is relatively lower and will augment return ratios and profitability metrics going forward," he said.
Varun Beverages is one of the largest franchisee of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking wafer sold under trademarks owned by PepsiCo.
At 11:57 hours IST, the stock price was quoting at Rs 642.50, up Rs 5.60, or 0.88 percent on the BSE.