Pepsi manufacturer Varun Beverages will enter the alcohol beverage industry in India, as the FMCG major announced the incorporation of a wholly owned subsidiary, KIVA Spirits and Company, to manufacture and sell Ready-to-Drink (RTD) alcoholic beverages and related products, the company said on Tuesday.
“The Board of Directors of the Company at their meeting held today approved: To incorporate a wholly-owned subsidiary company in India, inter-alia to carry on the business of Ready to Drink (RTD), Alcoholic Beverages and allied products, subject to receipt of applicable requisite approvals,” Varun Beverages said in an exchange filing on Tuesday, post-market hours.
The incorporation date of KIVA Spirits is yet to be announced, and Varun Beverages will be the parent company of the alcoholic beverage entity. However, the business is subject to prior approval from the Ministry of Corporate Affairs.
The Gurugram-based firm has proposed an authorized share capital of Rs 10 crore and paid-up equity share capital of Rs 9 crore for KIVA. Every share of the alcobev company will be subscribed at a face value of Rs 10 each.
Prathmesh Mishra appointed as CEO
The Ravi Jaipuria-led firm has appointed Prathmesh Mishra as the CEO & Managing Director of KIVA Spirits, Varun Beverages said. Mishra will be in charge of undertaking KIVA’s diversification into India’s alcobev market.
Mishra holds years of experience in the alcobev industry, having served as the Managing Director of Diageo’s Korea and Japan business. He also held several leadership positions at Diageo India.
Additionally, Mishra has worked with Pernod Ricard India and Royal Challengers Bangalore (RCB), bringing over 30 years of experience across the consumer business.
Varun Beverages share price
Varun Beverage ended Monday’s trade session flat at Rs 438. Over the past one month, its stock has declined 5%, while over the past six months, its share price has fallen 4%.