Image Source: Brand Equity
Varun Beverages Limited, a major player in the beverage industry and one of PepsiCo’s largest franchisees worldwide, has taken a strategic step to expand its manufacturing capabilities and supply chain infrastructure by incorporating a joint venture company named White Peak Refrigeration Private Limited. This new JV will focus on the manufacturing of visi-coolers and other refrigeration equipment, a crucial component for the beverage and retail industries.
Key Highlights Of The Joint Venture Formation
The JV company, White Peak Refrigeration Private Limited, has been incorporated in India and will primarily engage in manufacturing visi-coolers and refrigeration-related products.
Varun Beverages will hold a 50% stake in the joint venture, with the remaining 50% owned by Everest International Holdings Limited, making it an equal partnership.
The total paid-up capital of the JV is set at Rs 42.5 crore, with each partner contributing Rs 21.25 crore through cash consideration.
The incorporation follows prior regulatory disclosures made on July 29, 2025, in compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.
No regulatory approvals are pending for the setup of White Peak Refrigeration, indicating a smooth incorporation process.
The JV aims to boost Varun Beverages’ vertical integration efforts, enhancing control over quality, supply, and costs related to refrigeration equipment.
Strategic Importance And Business Objectives
Manufacturing visi-coolers in-house is a significant move for Varun Beverages, as it directly supports the company's cold chain infrastructure—a vital part of its operations to maintain the quality and freshness of beverages. The JV will reduce dependency on third-party suppliers and potentially lower costs associated with refrigeration equipment procurement.
The joint venture’s core objectives include:
Designing and manufacturing a range of visi-coolers tailored for the beverage and retail sectors.
Developing innovative refrigeration solutions that meet evolving market needs.
Strengthening supply chain resilience to ensure timely availability of refrigeration equipment across Varun Beverages’ production and distribution network.
Enhancing product customization and quality control through in-house manufacturing capabilities.
Industry Impact And Market Positioning
Visi-coolers are essential refrigeration units widely used in retail outlets, supermarkets, and food service establishments to display chilled beverages effectively. By venturing into manufacturing these units, Varun Beverages is positioning itself to capitalize on the growing demand for quality cooling solutions driven by expanding beverage consumption and retail modernization in India.
Expected benefits include:
Improved operational efficiency and supply chain logistics.
Enhanced ability to cater to customized refrigeration requirements across diverse markets.
Potential to leverage JV’s manufacturing capabilities for external sales beyond Varun’s internal consumption.
Strengthened competitive advantage through vertical integration and cost optimization.
Business Synergy With Everest International Holdings
The partnership with Everest International Holdings Limited brings together Varun Beverages’ deep understanding of beverage industry needs with Everest’s expertise, potentially in industrial manufacturing and refrigeration solutions. This collaboration is expected to foster innovation and operational excellence in producing advanced refrigeration equipment.
Future Outlook And Growth Prospects
White Peak Refrigeration is expected to become operational in the near term, with focus on ramping up production capacity and developing a robust product portfolio. This JV aligns with Varun Beverages’ broader strategy to enhance backward integration, support sustainable growth, and reinforce its market leadership.
Key forward-looking aspects:
Potential cost savings and margin improvements through supply chain control.
Expansion of refrigeration equipment offerings to complement evolving client and market demands.
Contribution to overall business resilience amid fluctuating external supplier dynamics.
Support for Varun Beverages’ sustainability initiatives by developing energy-efficient cooling solutions.
In conclusion, the incorporation of White Peak Refrigeration Private Limited as a joint venture between Varun Beverages and Everest International is a strategic milestone. It enhances Varun Beverages’ manufacturing capabilities, supply chain integration, and position in the beverage industry’s cold chain ecosystem, promising long-term operational and financial benefits.
Sources:
Moneycontrol, TradingView, Market Screener, News18, BW Retail World, ScanX Trade
Advertisement
Advertisement
