Global brokerage JPMorgan has retained its ‘Overweight’ rating on Varun Beverages and set a price target of ₹530, implying an upside of around 21% from Tuesday’s closing price.
VBL has announced plans to incorporate KIVA Spirits, a wholly owned subsidiary focused on ready-to-drink (RTD) and alcoholic beverages in India. The new entity will be led by Prathmesh Mishra, who has been appointed as its CEO and managing director.
Separately, the company plans to set up a joint venture in Tunisia for the manufacturing and distribution of carbonated soft drinks, juices, water and dairy products. Both initiatives are subject to regulatory approvals.
JPMorgan said the new initiatives could diversify Varun Beverages’ portfolio and create additional medium-term growth opportunities. However, investors are likely to seek greater clarity on the company’s alcobev strategy, including its approach to manufacturing versus distribution, potential partnerships or acquisitions, geographic priorities, capital expenditure requirements and target consumer segments.
Meanwhile, CLSA has maintained its ‘High Conviction Outperform’ rating on Varun Beverages with a price target of ₹629, implying an upside of around 44% from Tuesday’s close.
CLSA said Varun Beverages has formally entered India’s alcoholic beverage market through the incorporation of a dedicated subsidiary focused on RTD beverages, alcoholic beverages and allied categories.
According to the brokerage, the move marks a strategic diversification beyond the company’s core beverage portfolio and significantly expands its addressable market opportunity.
CLSA estimates India’s alcobev industry at around $50.8 billion, with premiumisation trends supporting long-term growth. The brokerage believes Varun Beverages could use the new venture to build a global alcobev business, ranging from Scotch whisky to local partnerships, while establishing a scalable presence in the domestic market.
VBL announcements
The company has announced plans to enter the RTD alcoholic beverages segment. VBL’s board has approved the incorporation of a wholly owned subsidiary, KIVA Spirits and Company Ltd., to undertake the business of RTD alcoholic beverages and allied products, subject to requisite approvals.
Varun Beverages will hold a 100% stake in the proposed subsidiary, which will have an authorised share capital of ₹10 crore and paid-up equity share capital of ₹9 crore.
The company has appointed Prathamesh Mishra, former Chief Commercial Officer at Diageo India, as CEO and Managing Director of the new subsidiary.
Mishra has more than 30 years of experience in the consumer business, having worked across global liquor companies including Diageo and Pernod Ricard.
He most recently served as Managing Director of Diageo’s Korea and Japan businesses, where he was responsible for growth and strategic leadership across the two markets.
Before his international assignment, Mishra spent several years at Diageo India, including seven years as Chief Commercial Officer, where he led the company’s commercial strategy and execution. He also served as Chief Operating Officer-West for three years.
Separately, Varun Beverages is also setting up a joint venture in Tunisia for the production and distribution of carbonated soft drinks, juices, water and dairy products.
The proposed venture, to be named Varun Beverages Tunisia SA or another name approved by regulators, will be owned 75% by Varun Beverages and 25% by Bevanda Tunisia.
The proposed share capital of the Tunisia venture is TND 9 million, the company said.
Varun Beverages shares ended 2.58% higher at ₹438 on Tuesday. The stock has declined 11% so far in 2026.
