New Delhi: Varun Beverages Ltd (VBL), one of PepsiCo’s largest bottling partners globally, is set to enter India’s alcoholic beverages market with the incorporation of a wholly owned subsidiary, KIVA Spirits and Company Ltd. The company’s board approved the proposal on August 25, 2026, marking a significant diversification beyond its traditional carbonated soft drinks and non-alcoholic beverage business. The new subsidiary will focus on ready-to-drink (RTD) alcoholic beverages and allied products, subject to receipt of the required regulatory approvals.
VBL has proposed an authorised share capital of ₹10 crore and paid-up equity share capital of ₹9 crore for KIVA Spirits, with Varun Beverages holding the entire stake. The company has also appointed Prathmesh Mishra as Chief Executive Officer and Managing Director of the proposed alcohol-focused entity. Mishra brings more than three decades of experience in the consumer and alcoholic beverages industry, including senior leadership roles at Diageo and Pernod Ricard. He most recently served as Managing Director of Diageo’s Japan and Korea businesses and previously held senior commercial and operational roles at Diageo India.
The move comes after VBL entered into a fresh agreement with PepsiCo that removed earlier restrictions on diversification into other beverage categories. The company’s expansion into RTD alcohol gives it an opportunity to participate in a rapidly evolving Indian alcobev market, where demand for premium and convenient beverage formats is increasing. Industry estimates cited by JM Financial put India’s alcoholic beverages market at around 1.1 billion cases, with beer and Indian-made foreign liquor each accounting for roughly 400 million cases.
Alongside its alcohol foray, Varun Beverages has also approved the incorporation of Varun Beverages Tunisia SA, a joint venture for producing and distributing beverages including carbonated soft drinks, juices, water and dairy products. VBL will hold 75% in the Tunisia venture, while Bevanda Tunisia will hold 25%. The proposed share capital is Tunisian dinar 9 million.
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The entry of a major beverage bottler into the RTD alcoholic beverages segment could intensify competition in India’s emerging ready-to-drink alcohol market. With KIVA Spirits being led by an experienced alcobev executive, VBL is positioning the new business as a dedicated platform for its planned alcoholic beverage portfolio
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