Varun Beverages Limited has extended its exclusive bottling and trademark licensing agreement with PepsiCo in India till April 30, 2049, marking a major strengthening of the long-standing partnership between the two companies.
The revised agreement, signed on May 21, 2026, replaces the earlier pact that was valid until 2039. The development comes as Varun Beverages continues aggressive expansion across beverages, snacks, and international markets.
In a regulatory filing, the company said the revised Exclusive Bottling Appointment and Trademark License Agreement (EBA) extends VBL’s rights to manufacture, bottle, sell, and distribute PepsiCo beverages in India for another decade.
A significant change in the new agreement is the removal of a long-standing restriction that prevented Varun Beverages from pursuing businesses outside PepsiCo operations.
The earlier EBA restricted VBL from carrying out any activity other than to act as an SPV for the PepsiCo business. Now this requirement is deleted in the revised EBA,” the company said in the filing.
The move is expected to provide greater strategic flexibility to the Ravi Jaipuria-led company as it explores adjacent growth opportunities beyond traditional carbonated beverages.
The investment pipeline is also expected to support the company’s ongoing expansion plans, particularly for its concentrates plant in Madhya Pradesh and snacks manufacturing facilities in Assam and Tamil Nadu.
Varun Beverages has steadily evolved into PepsiCo’s largest franchise bottler outside the United States and one of the beverage giant’s most important global partners. The partnership dates back to the late 1980s and expanded significantly after PepsiCo transferred its company-owned bottling operations in South and West India to VBL in 2019.
The company currently holds PepsiCo franchise rights across 27 Indian states and several overseas markets, including Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa and the Democratic Republic of the Congo.
VBL bottles and distributes major PepsiCo brands including Pepsi, Mountain Dew, Sting, Mirinda, 7UP and Tropicana.
Industry observers believe the revised agreement could pave the way for deeper collaboration between the two companies in emerging categories, including ready-to-drink alcoholic beverages and value-added beverage segments, both in India and international markets.