Cola King's wealth surges with ventures in South Africa, Thailand.

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Beverage Baron Ravi Jaipuria's Wealth Soars Over $3 Billion Amid Expansion Moves

Introduction:

In the last three months, Ravi Jaipuria, the 68-year-old chairman and Cola King of India, has witnessed a remarkable surge in his fortune, with a staggering increase of over $3 billion. The driving force behind this surge is primarily the 38% surge in shares of his flagship company, Varun Beverages. According to Forbes’ Real-Time Billionaires Ranking, Jaipuria's net worth now hovers around $15 billion.

Expanding Empire at Home and Abroad:

Ravi Jaipuria, known for his soft drinks-to-fast foods empire, has been strategically expanding both domestically and internationally. Investors are responding favorably to his expansion initiatives, evident in the rising shares of his two main listed companies—Varun Beverages and Devyani International.

Strategic Acquisitions:

Varun Beverages recently announced its acquisition of South Africa’s BevCo for a significant amount of 13.2 billion rupees ($158 million). BevCo holds the rights to produce PepsiCo’s non-alcoholic beverages in South Africa, making it a strategic move for Varun Beverages. The news of this acquisition propelled Varun Beverages' stock by 7%, reaching an all-time high of 1,253.40 rupees.

Devyani International, another company under Jaipuria's umbrella and a franchisee of Pizza Hut, KFC, and Costa Coffee in India, also made a significant announcement. Devyani revealed its acquisition of a 50% stake in Restaurants Development Company (RDC) for 3.4 billion rupees. RDC operates 274 KFC restaurants in Thailand, further diversifying Devyani's portfolio. This acquisition boosted Devyani International's stock by 5.3%.

Global Expansion Strategies:

Varun Beverages, already one of PepsiCo’s major bottlers outside the U.S., set up a new South African subsidiary earlier this year, anticipating expansion in the market. The acquisition of BevCo adds a licensed manufacturer and distributor for PepsiCo in South Africa, Lesotho, and Eswatini, with distribution rights for Namibia and Botswana.

Domestic Growth Plans:

Back home, Varun Beverages is actively setting up new plants in Uttar Pradesh, Maharashtra, and Odisha, equipped for manufacturing carbonated soft drinks and non-carbonated beverages. This domestic expansion supports Varun Beverages' recent foray into energy drinks, sports drinks, fruit juices, and milkshakes.

Legacy and Growth:

Ravi Jaipuria's business empire traces its roots back to a Coca-Cola bottling business started by his father and uncle in the 1960s. Despite initially running a small real estate and textiles business in Montreal, Jaipuria returned to India in 1985 after a family division, taking over a bottling plant in Agra. Four years later, he transitioned to PepsiCo, propelling the business's growth over the next three decades.




Conclusion:

Ravi Jaipuria's strategic moves in both domestic and international markets, coupled with well-timed acquisitions, have not only propelled his personal wealth to new heights but have also solidified his position as a major player in the global beverage industry. As his empire continues to expand, investors and industry watchers are keenly observing the next chapters in Jaipuria's entrepreneurial journey.

Disclaimer: This article is a pure understanding of Gyaanleikh Team, and we don't allow to rely on the same.

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