Shares of Varun Beverages surged over 3% on Friday, May 22 after the extension of exclusive partnership with PepsiCo in India.
Varun Beverages share price advanced 3.49% to Rs 538 apiece. The scrip traded 2.91% higher at 9:31 am, while the benchmark Nifty 50 index was 0.39% up.
As per the partnership deal informed in an exchange filing on Thursday, May 21, Varun Beverages will be acting as the exclusive bottling and trademark partner for PepsiCo until 2049, according to a regulatory filing by the company on Wednesday.
The revised agreement replaces the earlier arrangement that was scheduled to remain valid until April 30, 2039.
“Varun Beverages Limited (“VBL”) and PepsiCo Inc. and its affiliates (“PepsiCo”) have entered into a revised Exclusive bottling appointment and trademark license agreement for India (“EBA”) on May 21, 2026,” the company said in its filing.
PepsiCo has also removed a clause that earlier restricted Varun Beverages from pursuing businesses outside PepsiCo-related operations.
“The earlier EBA restricted VBL from carrying out any activity other than to act as an SPV for PepsiCo business, now this requirement is deleted in the revised EBA,” the filing said.
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