The intensifying competition between Reliance Consumer Products’ Campa Cola, The Coca-Cola Company and PepsiCo is creating an unexpected beneficiary in India’s beverage market — commercial refrigerator manufacturers.
As the three beverage giants aggressively expand distribution across kirana stores and small eateries, demand for visi-coolers and commercial refrigeration units has surged sharply, industry executives said.
Reliance’s re-entry into the soft drinks market with Campa Cola, priced aggressively at Rs 10, has intensified competition in India’s carbonated beverage segment, forcing rivals to accelerate retail expansion and cooler installations across urban and rural markets.
According to Mohit Sud, the cola battle is creating a strong growth tailwind for the commercial refrigeration segment.
“There is a certain tailwind in the segment,” Sud said, noting that demand for visi-coolers is growing faster than the company’s overall annual growth.
The expansion drive has benefited manufacturers such as Blue Star Ltd, Voltas Ltd, Haier Appliances India and Western Refrigeration Pvt. Ltd..
Industry estimates suggest India’s commercial refrigeration market could grow from $2.8 billion in 2025 to nearly $3.9 billion by 2034, driven by rising beverage consumption and retail penetration.
The latest round of cola wars has revived a decades-old strategy in India’s beverage industry — controlling refrigerator space at retail outlets to drive visibility and sales.
Unlike developed markets dominated by supermarkets, India’s retail landscape still relies heavily on neighbourhood kirana stores and small food outlets, many of which lack refrigeration infrastructure. Beverage companies, therefore, provide branded coolers as both a distribution and marketing tool.
Ravi Jaipuria, PepsiCo’s largest India bottling partner, said the industry is adding nearly half a million chilling units collectively through Campa Cola, Coca-Cola and PepsiCo initiatives.
“We are adding close to half a million and maybe more chilling equipment,” Jaipuria said during a recent earnings call, adding that retailers themselves are also purchasing an additional 400,000 to 500,000 coolers independently.
Varun Beverages Ltd last year entered a joint venture with Everest International Holdings to manufacture visi-coolers and refrigeration equipment.
Market analysts say distribution reach is becoming central to the battle for beverage market share in India’s rapidly expanding soft drinks sector.
“Every brand wants to put this, whether you are a Coke or a Pepsi. Of course, it helps when there’s a fight for market share,” said Arvind Singhal.
Reliance said Campa Cola crossed Rs 4,700 crore in sales during the year ended March 31, emerging as India’s fourth-largest carbonated soft drink brand with double-digit market share in several regions.
The strong summer forecast for India this year is also expected to support demand for carbonated beverages, encouraging companies to continue investing in production capacity and refrigeration infrastructure.
However, industry executives cautioned that geopolitical tensions in West Asia and the ongoing Iran conflict could disrupt supply chains and increase costs for refrigeration manufacturers and beverage companies alike.
Despite the risks, companies remain optimistic about long-term growth due to low penetration levels and rising cold beverage consumption across India’s smaller towns and rural markets.