Varun Beverages Ltd (VBL), PepsiCo’s second-largest global bottling partner, has announced the incorporation of a joint venture with White Peak Refrigeration Pvt Ltd to manufacture visi-coolers and other refrigeration equipment in India. The move marks a strategic diversification for VBL, aimed at strengthening its supply chain infrastructure and reducing dependence on third-party cooling equipment vendors.
The JV, which was formally incorporated on September 4, 2025, follows VBL’s earlier disclosure in July under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements. With a 50% shareholding in the new entity, VBL will co-own and co-operate the business alongside Everest International Holdings, the parent company of White Peak Refrigeration.
🧭 Strategic Objectives of the JV
| Objective | Description | Expected Impact |
|---|---|---|
| In-house Manufacturing | Production of visi-coolers and refrigeration units | Cost efficiency, quality control |
| Cold Chain Expansion | Strengthen cooling infrastructure for beverages | Improved distribution and shelf life |
| Import Substitution | Reduce reliance on imported cooling systems | Boost domestic manufacturing |
| Operational Synergy | Leverage VBL’s distribution and White Peak’s tech | Faster rollout and scalability |
| ESG Compliance | Energy-efficient cooling solutions | Sustainability and regulatory alignment |
The JV is expected to begin commercial production by Q2 2026, with initial capacity focused on high-demand regions such as North India, Maharashtra, and South Africa.
🔍 Why Visi-Coolers Matter for Beverage Distribution
Visi-coolers are transparent-door refrigeration units used extensively in retail outlets to store and display beverages. For companies like VBL, which distribute carbonated drinks, juices, and packaged water, visi-coolers are critical for maintaining product quality and driving impulse purchases.
| Feature of Visi-Coolers | Business Benefit |
|---|---|
| Temperature Control | Maintains optimal beverage quality |
| Visual Merchandising | Enhances brand visibility and consumer appeal |
| Energy Efficiency | Reduces operational costs |
| IoT Integration (future-ready) | Enables remote monitoring and predictive maintenance |
By manufacturing these units in-house, VBL aims to reduce procurement costs, improve turnaround time, and customize units for regional climate and retail formats.
📉 VBL’s Q2 Performance and Strategic Context
The JV announcement comes shortly after VBL reported its Q2 CY2025 results. Despite a 3% year-on-year decline in consolidated sales volumes to 389.7 million cases—largely due to unseasonal rainfall—revenue grew 2.5% to ₹7,017.4 crore, and net profit rose 5% to ₹1,317 crore.
| Metric | Q2 CY2024 | Q2 CY2025 | YoY Change |
|---|---|---|---|
| Consolidated Volume | 401.5 million | 389.7 million | –3.0% |
| Domestic Volume | 278.5 million | 258.7 million | –7.1% |
| International Volume | 123.0 million | 141.7 million | +15.1% |
| Revenue | ₹6,847.2 crore | ₹7,017.4 crore | +2.5% |
| Net Profit | ₹1,254 crore | ₹1,317 crore | +5.0% |
The JV is seen as a strategic response to operational challenges and a step toward long-term cost optimization.
🔥 White Peak Refrigeration: Profile and Capabilities
White Peak Refrigeration, backed by Everest International Holdings, specializes in commercial cooling solutions and energy-efficient refrigeration systems. The company has R&D facilities in Singapore and Pune, and supplies to retail chains, food service providers, and beverage companies across Asia and Africa.
| Capability Area | Description |
|---|---|
| Product Portfolio | Visi-coolers, deep freezers, display chillers |
| Technology Focus | Low-emission compressors, smart cooling systems |
| Manufacturing Footprint | Plants in Pune, Noida, and Durban |
| Certifications | ISO 9001, CE, RoHS, BEE Star Rating |
The JV will leverage White Peak’s design and engineering expertise to develop customized cooling units for VBL’s product categories.
🧠 Expert Commentary and Industry Sentiment
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | FMCG Supply Chain Analyst | “This JV is a smart move—cooling is a critical cost center in beverage logistics.” |
| Rajiv Bansal | Manufacturing Consultant | “In-house visi-cooler production will improve VBL’s margins and inventory control.” |
| Dr. Rakesh Sinha | ESG Strategist | “Energy-efficient cooling aligns with India’s green manufacturing goals.” |
Industry experts believe the JV could set a precedent for other beverage companies to localize their cooling infrastructure.
📦 Competitive Landscape: Cooling Equipment in FMCG
| Company | Cooling Strategy | Market Position |
|---|---|---|
| Coca-Cola India | Outsourced to Haier, Voltas | High dependency on third-party vendors |
| PepsiCo India | Mixed model via bottlers like VBL | Transitioning to hybrid model |
| Parle Agro | In-house + OEM partnerships | Regional customization focus |
| VBL (Post-JV) | In-house via White Peak JV | Strategic control and cost optimization |
With this JV, VBL becomes one of the few beverage bottlers in India to directly manufacture its own cooling equipment.
📌 Conclusion
Varun Beverages’ joint venture with White Peak Refrigeration marks a strategic leap in its supply chain evolution. By manufacturing visi-coolers and refrigeration units in-house, VBL aims to enhance operational efficiency, reduce costs, and support its expanding domestic and international footprint. As beverage consumption grows and cold chain infrastructure becomes more critical, this JV positions VBL to lead with innovation, sustainability, and scale.
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Disclaimer: This article is based on publicly available corporate filings, media reports, and financial disclosures as of September 4, 2025. It is intended for informational purposes only and does not constitute investment or business advice.
