Varun Beverages Limited (VBL) has disclosed a business alliance agreement with Asahi Group Holdings, Ltd. of Japan for franchising the CALPIS brand in India. The disclosure is made pursuant to Regulation 30 of SEBI LODR Regulations.

Key Partnership Details

  • Asahi Group Holdings, Ltd. (Japan) enters franchise agreement with Varun Beverages Limited
  • Agreement covers introduction of CALPIS brand ready-to-drink, non-alcohol/non-carbonated dairy based products in Indian market
  • Launch timeline: Second half of 2026 or thereafter
  • Initial product offerings: Two flavors - Original and Mango

Roles and Responsibilities

  • Asahi Group Holdings: Product development and technical support for production
  • Asahi Local Subsidiary: Marketing and brand management oversight
  • Varun Beverages: Manufacturing, distribution, and sales operations

Market Context

  • India represents promising market with population over 1.4 billion (world's largest)
  • Non-alcohol beverage market expanded approximately 2.3 times in volume over past decade through 2025 (Source: GlobalData)
  • Growth drivers include population growth, expansion of wealthy middle-class, and rising health-consciousness

Company Background - Varun Beverages

  • Second largest franchisee of PepsiCo outside United States
  • 53 production facilities across India and international markets
  • Presence in 27 states and six union territories in India
  • International markets include: Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, DRC, South Africa, Lesotho, Eswatini, Namibia, Botswana, Madagascar, Mozambique
  • Part of RJ Corp Group with diversified business interests

Product Background - CALPIS

  • Japan's pioneering fermented milk-based beverage
  • First created in 1919 by Kaiun Mishima
  • Registered trademark of Asahi Soft Drinks Co., Ltd.
  • Available in more than 10 countries and regions, primarily in Asia and North America
  • Core values: deliciousness, nourishment, safety, and affordability

Strategic Rationale

  • Enables Asahi Group to focus on product development and marketing while leveraging Varun's production capabilities
  • Varun Beverages adds product with unique value to its portfolio
  • Partnership expected to deliver mutual benefits through combined strengths

Management Commentary

Atsushi Katsuki, President and Group CEO at Asahi Group Holdings, Ltd.: "We are delighted to introduce the CALPIS brand, which has been enjoyed in Japan for more than a century, to consumers in India. India is one of the world's most dynamic and promising beverage markets, and we are pleased to partner with Varun Beverages, a leading beverage company with strong manufacturing capabilities and extensive market reach."

Varun Jaipuria, Executive Vice Chairman at Varun Beverages Limited: "We are honored to partner with Asahi Group, one of the world's leading beverage companies, renowned for its iconic brands and deep understanding of consumer preferences across markets. CALPIS is a brand with over a hundred years of heritage and consumer trust, and we are excited to introduce it to India."

Financial Impact

Financial impact not quantified in the disclosure.