Varun Beverages Ltd has incorporated "KIVA Spirits and Company Limited" as a wholly-owned subsidiary, the Pepsi bottler informed the exchanges on Monday morning.
This follows the announcement last Tuesday, where the Board of Directors approved the incorporation of a wholly-owned subsidiary for its entry into the lucrative AlcoBev market.
Varun Beverages' renewed deal with PepsiCo to continue the relationship until 2049 also removed the restriction on the bottler to enter other unrelated businesses.
The ready-to-drink alcoholic beverages market is expanding in India faster than other related segments like the wine industry
IMARC Group estimates the AlcoBev market in India to increase from $148.3 billion in 2025 to $176.2 billion by 2034.
Varun Beverages has roped in AlcoBev industry veteran who previously served as Diageo's Korea lead, Prathmesh Mishra, to be KIVA Spirits CEO.
VBL shares traded 0.8% lower at ₹410.25 early on Monday, in line with the wider market as US-Iran war sees fresh escalation.