Hotline: 1800 102 2007
X
Search Business Opportunities
Feb, 08 2018

Ravi Jaipuria eager to own PepsiCo's bottling operations

PepsiCo already owns nine manufacturing facilities in the south and west.

Ravi Jaipuria, the endorser of RJ Corp, is keen to acquire PepsiCo’s bottling operations in India that his group doesn’t already own.

Jaipuria, promoter of the $1.6-billion diversified RJ Corp replied when asked about the national interest in bottling rights of Cola Company, “Whether PepsiCo wants to give us more is a call they have to take. We are keen. But it depends on themterested in acquiring the bottling rights of the cola company nationally. RJ Corp is PepsiCo’s second-biggest bottler globally.

He said, PepsiCo contributes close to half of the group’s business now. RJ Corp owns the bottling business of PepsiCo in north and east India through listed entity Varun Beverages, which acquired bottling franchises in five more states over the past three-four months.

A top official directly involved with PepsiCo said opinion is divided internally on whether the entire bottling operations should be managed by one franchisee or split between different companies.

Last month, PepsiCo said it was handing over the distribution of some products in northern and eastern India to RJ Corp.

Jaipuria said, “PepsiCo has already transferred distribution of Tropicana, Gatorade and Quaker Oats. So obviously they have faith in us — that’s why they are transferring more and more business to us. What we’ve got in the five states is 320 million people. But we have to first consolidate that.”

For aerated drinks, RJ Corp manages the franchisee for PepsiCo products across 20 states and two Union Territories, besides overseas markets such as Sri Lanka, Mozambique, Zambia and Morocco.

In October that PepsiCo is looking to divest its bottling, sales and distribution operations to franchisees in the south and west, the two regions where it bottles soft drinks on its own, to focus on foods. PepsiCo owns nine manufacturing facilities in the south and west.

A majority of PepsiCo’s bottling is run by franchisee partners in the US and Europe, with companies increasingly opting to be asset-light.

Jaipuria, whose association with PepsiCo spans over two decades, said the soft drinks category, which went through a rough patch over the past couple of years, is now looking positive.

“After the rollout of the goods & services tax last year, it’s been positive. Ultimately, consumers are not going to stop drinking beverages. The question is what will they drink? PepsiCo is getting into flavoured water, juice variants. You can’t ignore if people are conscious about wanting less sugar or other products. Companies are already making those changes,” he said.

PepsiCo, which makes Pepsi cola, Mountain Dew lemon drink, Kurkure snacks and Quaker oats, sold the India bottling operations of its fizzy drinks in the north and east to Jaipuria three years ago. RJ Corp’s businesses also include restaurants and dairy besides soft drinks.

RJ Corp is also handling the franchise for Pizza Hut, KFC and Costa Coffee. Group Company Devyani International has inked a franchise deal for Singapore-based luxury tea brand TWG in India and the UK. RJ Corp also sells Cream Bell ice-creams and runs grocery retail chain JMart. The company has other interests like healthcare and education.

Comment
Related opportunities
  • Others Food Service
    About Us: Dhaba Cafe is a complete food hub with two..
    Locations looking for expansion Madhya pradesh
    Establishment year 2008
    Franchising Launch Date 2012
    Investment size Rs. 5lac - 10lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Indore Madhya pradesh
  • Others Food Service
    About Us: Kake Di Hatti, serving since 1942. Times of India..
    Locations looking for expansion Delhi
    Establishment year 1950
    Franchising Launch Date 2009
    Investment size Rs. 20lac - 30lac
    Space required 900
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi Delhi
  • Bars, Pubs & Lounge
    About Us: House Of Mandarin offers delicious dining, takeout and delivery..
    Locations looking for expansion Maharashtra
    Establishment year 2000
    Franchising Launch Date 2018
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 2500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • E-Commerce & Related
    About Us: Incepted in 1955 by Shri. Madhavrao Ashtekar, who hailed..
    Locations looking for expansion Delhi
    Establishment year 1955
    Franchising Launch Date 2018
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities