Annual Report 2024

WHAT’S INSIDE
PAGE 08

PAGE 54
CHAIRMAN’S COMMITTED TO A
MESSAGE CLEANER, GREENER
TOMORROW

Corporate Overview Driving Sustainable

Growth, Steadily
03 Future-ready. Eco-steady. 36 About the ESG Report
06 A Step Ahead Already 38 Promoter, Executive Vice-
Chairman and WTD’s
08 Chairman’s Message: Future- Message: Building a Future
ready with Sustainable and that’s Ready and Steady
Consistent Growth 40 Shaping a Future-ready,
12 Sipping Success at Every Value-driven Path
Step of Our Journey 42 Focusing More on
Empowering Our Pillars
14 Curating a Future-ready
44 Prioritizing What Matters
Product Line
48 ESG at a Glance
18 Pouring Refreshments across 50 Leading the Charge for a
Borders, Expansion in a Sustainable Tomorrow
World of Refreshment
Environment
20 Pioneers of Delivering
54 Committed to a Cleaner,
Refreshment Sustainably,
Greener Tomorrow
One Sip at a Time
56 Water Conservation
26 Subsidiaries, Associates and 58 Rejuvenation of Water Bodies
Joint Ventures (RWB) - A New Initiative
28 Driving Consistent Results 60 Water Bodies: Impact
Year after Year Assessment
66 Plastic Waste Management
32 Our Board: Enriched by
and Recycling
Diversity, Focused on Value
PAGE 84

PAGE 104

PAGE 126
FUTURE-READY EMBEDDING ESG IN INTERNATIONAL
WORKFORCE SHAPING OUR CORPORATE TERRITORIES
OUR FUTURE DNA

70 Enhancing Energy
Performance
International Statutory Reports
72 Sustained Climate Action: Territories
Reducing our Carbon
Footprint 128 Growing Stronger in the 150 Management Discussion &
76 VBL’s Commitment to International Business Analysis Report
Sustainability and Carbon 159 Board’s Report
Reduction
137 Awards and Recognition 176 Corporate Governance Report
78 Sourcing with Care
138 Corporate Information 197 Business Responsibility and
Social Initiatives Sustainability Report
139 GRI Index
84 Future-ready Workforce
Shaping our Future
93 Employee Health and Safety
Financial Statements
97 Augmenting Product Safety
and Quality 226 Consolidated Financial
Statements
99 Consumer Health and
Nutrition 332 Standalone Financial
Statements
Governance
104 Embedding ESG in our
Corporate DNA
Assurance Statements
112 Information System and
VBL Code of Conduct 437 BRSR Assurance Statement
114 CSR Initiatives: Making
Read or download 441 GRI Assurance Statement
a Sustainable Difference the report at:
117 Risk and Opportunities www.varunbeverages.com
Management
122 Sustainable Tax Practice:
Furthering our ESG
Commitment
02 Varun Beverages Limited
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

FUTURE-READY.
ECO-STEADY.
Imagine a future where every sip quenches more than thirst – it
sustains life, preserves the planet, and inspires change. At Varun
Beverages Limited (VBL), India’s leading PepsiCo franchisee, the
act of serving a drink has evolved into a profound responsibility
– one of fueling lives, driving innovation, and safeguarding the
planet. For over three decades, we have refreshed millions while
steadily redefining what it means to be a responsible industry
leader. From crowded cities to remote rural markets, each bottle
we deliver carries not only the promise of refreshment but also
our commitment to a greener and more sustainable future.
Our operations delivered robust growth across key markets, with consolidated
revenues rising by 24.7% in CY 2024. We also made significant strides in
expanding our global and domestic footprint. The acquisition of South Africa
based Beverage Company (BevCo) and its subsidiaries has strengthened our
international footprint and marks a key milestone in expanding our presence in
the African market. Domestically, we commissioned three greenfield facilities
in Supa (Maharashtra), Gorakhpur (Uttar Pradesh), and Khordha (Odisha),
boosting production capacity in India. Additionally, our Kinshasa facility in the
DRC now operates at full capacity on a three-shift basis.
These key milestones along with our commitment to net-zero GHG emissions
by 2050, enhanced efficiency through backward integration across 17
production plants and a strong focus on water stewardship, circular economy
through plastic waste management, and the adoption of renewable energy,
reinforce our Future Ready growth strategy.
As we grow, we continue to push boundaries – expanding our reach across
continents, embracing innovations that lower environmental footprints, and
nurturing communities through sustainable practices.
With a future-ready portfolio and an eco-steady approach, we are not just
meeting today’s demands but shaping a resilient and sustainable tomorrow.

AT VBL, THE FUTURE IS NOT JUST

SOMETHING WE ANTICIPATE – IT’S
SOMETHING WE BUILD. AND WE
ARE READY.

Annual Report 2024 03

CORPORATE
OVERVIEW
A STEP AHEAD ALREADY

Revenue

Financial ` 200,077
Million

EBITDA

` 47,111 Million

Net Profit

` 26,343
Million

Capex

` ~45,000
Million

06 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Operational

Cases sold in CY 2024

1,124 Million

State-of-the-art production
Water usage ratio
facilities around the globe

48 1.56^ Times

rPet recycled plastic used

Pepsi Zero and Sting

~7,300 MT

^ Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of
2 new greenfield plants in 2023 and 3 new greenfield plants in 2024.

Annual Report 2024 07

 Chairman’s Message

Future-ready with Sustainable

and Consistent Growth

Dear Stakeholders,
It gives me immense
pleasure to present the
30th Annual Report of
Varun Beverages Limited
(VBL).

Ravi Jaipuria
Promoter & Non-Executive Chairman

Overview of the year by 23.2%, largely led by new territories resulting in

We are delighted to share that CY 2024 has been a consolidated revenues increase by 24.7%, EBITDA
year of healthy operational and financial performance growth of 30.5%, and PAT growth of 25.3% for the year.
for VBL. Our revenue growth was supported by
Throughout the year, we focused on expanding our
organic volume expansion, improved product mix, and
manufacturing footprint and improving our on-ground
contributions from recent acquisitions. India volumes
execution capabilities. The commissioning of multiple
grew 11.4%, reflecting the strength of our distribution
greenfield facilities across India and Africa, along
network and operational execution during a dynamic
with strategic partnerships to diversify our portfolio
market environment. Our international business also
into snacks and value-added beverages, reflects our
maintained strong momentum, with particularly
commitment to capitalizing on emerging consumer
encouraging results from the African markets following
trends. Additionally, we took steps to further
the successful integration of BevCo in South Africa
strengthen our international presence by signing share
and the commissioning of our Democratic Republic of
purchase agreements to acquire PepsiCo’s business in
Congo (DRC) facility. Consolidated volumes increased

08 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Tanzania and Ghana, subject to regulatory and other CY 2024 was marked by significant
approvals. Integration of these acquisitions, along with
our operations in South Africa, shall strengthen our
progress in expanding our
presence in key international markets. manufacturing footprint to meet
growing demand across key
Strengthening growth capabilities markets. In India, we commissioned
CY 2024 was marked by significant progress in
three new greenfield facilities in
expanding our manufacturing footprint to meet growing
demand across key markets. In India, we commissioned
Supa (Maharashtra), Gorakhpur
three new greenfield facilities in Supa (Maharashtra), (Uttar Pradesh), and Khordha
Gorakhpur (Uttar Pradesh), and Khordha (Odisha). (Odisha). These state-of-the-art
These state-of-the-art plants have enhanced our
plants have enhanced our capacity
capacity to cater to the increasing demand in under-
penetrated markets.
to cater to the increasing demand
in under-penetrated markets.
Internationally, our Democratic Republic of Congo (DRC)
facility became operational and rapidly scaled to 100%
utilization within months. This remarkable performance
has reinforced our belief in the untapped potential of
the region, and we are now preparing for backward
integration and the commissioning of a second facility to Accelerating growth in international markets
strengthen our operations further.
CY 2024 was a year of remarkable progress in
strengthening our presence in the African market. A
Furthermore, a key aspect of our growth strategy
key milestone was the successful integration of The
is the continuous expansion and enhancement of
Beverage Company Proprietary Limited (BevCo) in
our distribution network and chilling infrastructure.
South Africa, enhancing our operational capabilities
Strengthening these areas is crucial for deepening our
and accelerating growth across the continent. This
presence in both established and under-penetrated
acquisition enabled the Company to consolidate its
markets. These strategic investments reflect our
presence in franchised territories in South Africa,
proactive approach to capturing growth opportunities
Lesotho, and Eswatini, while also securing distribution
and ensuring we are well-prepared to meet
rights in Namibia, Botswana, Mozambique, and
future demand.
Madagascar. Building on this momentum, we further
expanded our footprint through strategic acquisitions in
Expanding partnership with PepsiCo
key African regions.
During the year, we deepened our collaboration with
PepsiCo, venturing into new segments and geographies We also entered into share purchase agreements to
to diversify and grow our product portfolio. In CY 2024, acquire PepsiCo’s business in Tanzania and Ghana,
we entered into an Exclusive Snacks Appointment subject to regulatory and other approvals. This includes
Agreement to manufacture and package Cheetos in 100% stake in SBC Beverages Tanzania Limited (SBCT),
Morocco by May 2025. Building on this momentum, a market leader with five manufacturing facilities. SBCT’s
we signed another exclusive snacks franchising strong operational infrastructure and diverse product
appointment for “Simba Munchiez” in Zimbabwe and portfolio, including PepsiCo brands and its own energy
Zambia, with distribution starting in February 2025, and drink, Supa Komando, position us to effectively address
manufacturing set to commence by October 2025 and the growing consumer demand in East Africa.
April 2026, respectively. Our expansion into the snacks
market in these three countries marks a key milestone in Similarly, our acquisition of SBC Beverages Ghana Limited
enhancing our portfolio and leveraging synergies with (SBCG) will solidify our footprint in West Africa.
our existing infrastructure.

Annual Report 2024 09

 At VBL, sustainability is a cornerstone of our strategy. This year,
we furthered our commitment to environmental stewardship
by broadening the scope of initiatives like PET recycling, PET
light-weighting, energy-efficient manufacturing, increasing
renewable energy contribution and water conservation. A key
focus is achieving a “net positive” water balance by replenishing
more water than we use through conservation, recycling,
and groundwater recharge projects.

Sustainability Initiatives QIP issue

At VBL, sustainability is a cornerstone of our In November 2024, we successfully raised ` 75,000
strategy. This year, we furthered our commitment to Million through a Qualified Institutional Placement
environmental stewardship by broadening the scope (QIP). Over 13.27 crore equity shares were allotted
of initiatives like PET recycling, PET light-weighting, at an issue price of ` 565 per share. This significant
energy-efficient manufacturing, increasing renewable capital raise demonstrates the trust and confidence
energy contribution and water conservation. A key of investors in the Company’s strategic direction and
focus is achieving a “net positive” water balance long-term potential.
by replenishing more water than we use through
conservation, recycling, and groundwater recharge The proceeds from this QIP have strengthened our
projects, thereby ensuring a positive impact on water financial position and provided the flexibility to
resources. These efforts align with PepsiCo’s global pursue our ambitious growth plans. These funds will
PEP+ objectives, reinforcing our shared commitment to support our expansion into new geographies, strategic
a sustainable future. acquisitions, and further investment in enhancing our
operational capabilities.
Through these strategic initiatives, we have established
a clear roadmap for long-term sustainability. As part Dividend & share-split
of this commitment, we have set ambitious Net-Zero At VBL, managing our business efficiently for the benefit
targets, officially validated by the Science Based Targets of all stakeholders is a cornerstone of our philosophy.
initiative (SBTi), aiming to achieve net-zero greenhouse A critical element in delivering value to our shareholders
gas emissions across our entire value chain by 2050. and securing their long-term confidence is through a
consistent and transparent return of capital. In alignment
Additionally, our dedication to environmental
with this approach, our Board of Directors established
stewardship has earned us a spot on the prestigious
a formal dividend distribution policy following the
CDP A List based on the 2024 CDP scores:
Company’s listing in November 2016.
• A for Climate
• A- for Water Security To broaden our shareholder base and increase the
accessibility of our shares to a diverse range of investors,
This recognition underscores our commitment to we have sub-divided/split the existing equity shares of
sustainable practices and our ongoing efforts to VBL. Each equity share, previously with a face value
drive meaningful change. We continue to integrate of ` 5 and fully paid-up, was sub-divided/split into two
environmentally responsible practices across our equity shares each having a new face value of ` 2.
operations, minimizing our footprint while delivering
value to stakeholders. Sustainability remains central to During the year under review, the Board of Directors in
our growth, enabling us to make a lasting impact in the their meeting held on July 30, 2024 declared an interim
communities and regions we serve. dividend of ` 1.25 per Equity Share (face value of ` 5/-

10 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

per Equity Share) to the eligible equity shareholders As we navigate dynamic market environments, we stay
of the Company. Further, the Board of Directors have focused on delivering sustainable growth and value while
also recommended a final dividend of ` 0.50 per Equity upholding our standards of excellence. We look forward
Share (face value of ` 2/- per Equity Share) for the to a future of continued success and shared prosperity.
Current Year 2024.
Vote of thanks
Message to stakeholders We express our deepest appreciation to our
As we reflect on another year of significant shareholders, investors, bankers, and creditors for
achievements, I extend my heartfelt gratitude to all our their support and belief in our vision. A special thanks
stakeholders for their trust and support. Your confidence to our dedicated employees, whose tireless efforts
in VBL has been instrumental in driving our success. and commitment have been instrumental in our
achievements. We are also immensely grateful to our
As we move forward, we remain focused on Board of Directors for their guidance and strategic
strengthening our market position, leveraging growth insights, helping steer the Company towards new
opportunities in both domestic and international opportunities and sustained growth. Your collective
markets, and maintaining our commitment to contributions have been invaluable in our journey, and
sustainable practices. Our dedication to innovation, we look forward to your continued partnership.
strategic expansion, and sustainability continues to
guide our journey. Warm regards,

Ravi Jaipuria
Promoter & Non-Executive Chairman

Annual Report 2024 11

Our Journey

Sipping Success at Every Step

of Our Journey
Since our inception in the 1990s, we have been a leading name in the industry,
pouring our efforts into sustained growth and strong stakeholder relationships.
Over three decades, we’ve evolved with every milestone, creating value and
fostering inclusive, sustainable progress – one sip at a time

2014 &
2012 2015
2004 •C
 onsolidated the sub-
territories of Goa, three
Capital infusion of
` 4,500 Million by
1996 districts of Maharashtra promoter group
Devyani
1991 Commenced Beverages
and North-East India
subsequent to merger of
operations in Limited merged a group company
Received licensing with VBL in
Jaipur
agreement from •T
 hree companies having
2004
PepsiCo through the territories of Nepal,
a group Company Sri Lanka and Morocco
for trademark and became Subsidiaries
bottling •P
 epsiCo sold 26% stake
in VBL to VBIL

1995 1998 2011 & 2015

Incorporated as PepsiCo
2012 • Received
investment from
a public limited
company
acquired 26%
stake in Varun
Investment made 2013 AION Investment
by Standard •A
 cquired sub-
Beverages
Chartered PE in Acquired the territories (Parts
Limited
Varun Beverages Delhi sub-territory of Uttar Pradesh
(International) (remaining parts) and Haryana,
Limited (VBIL)* along with
(*Merged with Uttarakhand,
VBL in 2012) Himachal Pradesh,
Punjab and the
Union Territory of
Chandigarh)

12 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

2024
•A
 cquired BevCo along with its
2022 wholly-owned subsidiaries

2018 •E
 ntered into an
•E
 ntered into binding
agreements to acquire 100%
agreement to distribute
•A
 cquired sub- stake inTanzania and Ghana,
2016 territories in the
and sell Lays, Doritos
and Cheetos for PepsiCo
further enhancing its African
State of Jharkhand, market presence
in the territory of
• Acquired 60% Chhattisgarh and Morocco •S
 ecured exclusive snacks
shareholding in Bihar franchising rights for PepsiCo’s
• Commenced commercial
Varun Beverages brands in Morocco, Zimbabwe,
•G
 ranted sales and production of Kurkure
(Zambia) Limited and Zambia
distribution rights Puffcorn at the
• Got listed on NSE of Tropicana and manufacturing plant in
and BSE Gatorade Kosi, Uttar Pradesh for
•S
 et up a Greenfield PepsiCo
production facility in
Nepal and Zimbabwe

2017 2019 2023

• Acquired sub- •A
 cquired subterritories • Incorporated new subsidiary
territories across in the parts of - VBL Mozambique, SA, South
the States of Maharashtra (14 Africa, to carry on the business
Madhya Pradesh districts), parts of of distribution
(certain parts) and Karnataka (13 districts)
Odisha and parts of Madhya
Pradesh (3 districts)
• Acquired the
incremental 30% •A
 cquired sub territories
shareholding in across seven States*
Varun Beverages
* Gujarat, parts of Maharashtra, parts of Karnataka, Kerala, Tamil Nadu, Telangana and parts
(Zambia) Limited of Andhra Pradesh and five union territories of Daman & Diu, Dadra and Nagar Haveli,
Puducherry (except Yanam), Andaman & Nicobar Islands and Lakshadweep

Annual Report 2024 13

Product portfolio

Curating a Future-ready
Product Line
We are focused on expanding our portfolio
with high-growth products. By aligning with
emerging consumer preferences and trends,
we are strategically positioning both global and
regional brands for significant scalability.

Share of Segment-wise Sales Volume

20%

6%

74%

Carbonated Juice Water

soft drinks

14 Varun Beverages Limited

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Annual Report 2024 15

 Brands Licensed by PepsiCo

Carbonated Soft Drinks

Pepsi Pepsi Zero Mountain Dew Mirinda 7UP

Fruit Pulp / Juice-based Drinks Club Soda Energy Drinks

Slice Tropicana
Sting

Evervess Duke’s

Tropicana Nimbooz
Delight Rockstar

Sports Drinks Carbonated Juice Ice Tea Packaged Drinking Water

Based Drinks

Gatorade Gatorade Gatorade 7UP Nimbooz Lipton Aquafina Aquavess

Blue Bolt Lemon Orange Masala Soda Ice Tea

16 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Snacks#

TM

FritoLay Cheetos Doritos Simba Kurkure

Own Brands^

Carbonated Soft Drinks Packaged Drinking Water

Refreshhh Coo-ee Jive Refreshhh Aquaclear

Energy Drink Value-added Dairy-based Beverages*

Reboost Energy Cream Bell Mango Belgian Kesar Cold Elaichi Rose Butter Vanilla
Shake Choco Badam Coffee Scotch

#
 anufacturing of Cheetos (underway) & Distribution of Frito Lay, Doritos and Cheetos in Morocco; Manufacturing (underway) &
M
Distribution of Simba Munchiez in Zambia and Zimbabwe; Co-manufacturing of Kurkure Puffcorn in India.
^
Manufacturing & Distribution of own brands is restricted in select territories.
*
“CreamBell” trademark has been licensed to be used by VBL for ambient temperature value added dairy based beverages.

Annual Report 2024 17

 Our Presence

Pouring Refreshments across Borders,

Expansion in a World of Refreshment
Over the years, we have strengthened our global presence to become one of
the foremost franchisee of PepsiCo, with India as our primary revenue driver.
Beyond India, our operations now span international markets, including Nepal,
Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini, the
Democratic Republic of Congo (DRC), Namibia, Botswana, Mozambique &
Madagascar.
We successfully completed the Continental Presence
acquisition of South Africa-based
Beverage Company (BevCo) and South Asia India Nepal Sri Lanka
its wholly-owned subsidiaries,
strengthening our global portfolio.
Simultaneously, we advanced domestic
growth by commissioning three Africa Morocco Zambia Zimbabwe
greenfield production facilities in
India – located in Supa (Maharashtra), DRC South Africa Eswatini
Gorakhpur (Uttar Pradesh), and
Khordha (Odisha) — demonstrating
our commitment to high-growth
Lesotho Namibia* Botswana*
opportunities. Our greenfield facility
in Kinshasa, DRC, has achieved 100% Mozambique* Madagascar*
utilization on a three-shift basis, with
further expansion planned. We also
Note: *Distribution rights
hold the franchise for various PepsiCo
products in these markets, along with
distribution rights in Namibia, Botswana,
Mozambique, and Madagascar,
reinforcing our position as a key player
in the global beverage industry.

Nepal
Morocco

Ghana

DRC Tanzania
Mozambique

Madagascar
Eswatini
Zambia Lesotho
VBL India Sub-territories
Namibia Botswana
VBL International territories
Zimbabwe
South Africa Other Franchised Sub-territories

Sri Lanka WIP territories

Map not to scale. For illustrative purposes only.

18 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Presence Across Sub-territories

• Punjab • Manipur • Madhya Pradesh • Telangana
• Himachal Pradesh • Mizoram • Odisha • Dadra & Nagar Haveli,
• Uttarakhand • Nagaland • Chhattisgarh and Daman & Diu
• Delhi • Tripura • Jharkhand • Puducherry
(except Yanam)
• Haryana • Uttar Pradesh • Bihar
• Andaman & Nicobar
• Rajasthan • West Bengal • Gujarat
Islands
• Arunachal Pradesh • Maharashtra • Karnataka
• Lakshadweep
• Assam • Goa • Kerala
• Meghalaya • Chandigarh • Tamil Nadu

Manufacturing Facilities
India
• Pathankot • Goa
• Phillaur • Tirunelveli
• Nuh • Dharwad
• Panipat • Bharuch
• Greater Noida I • Begusarai
• Greater Noida II • Aurangabad
• Jainpur • Mahul#
• Bazpur • Nelamangala
• Sathariya • Palakkad
• Sathariya II • Mamandur
• Kosi • Sangareddy
• Sandila • Sri City
• Jodhpur • Bundi
• Bhiwadi • Jabalpur
• Mandideep • Supa
• Jamshedpur • Gorakhpur
• Cuttack • Khordha
• Kolkata
• Guwahati #
For land & building,
Unit I & II company has short-term
leasehold rights

Map not to scale.

International For illustrative purposes only.
• Nepal I • South Africa –
• Nepal II Durban
VBL India Sub-territories
• Sri Lanka • South Africa –
East London VBL International territories
• Morocco
• South Africa – Other Franchised Sub-territories
• Zambia
Cape Town
• Zimbabwe WIP territories
• Democratic Republic
• South Africa – of Congo (DRC) VBL Manufacturing facilities
Johannesburg
• South Africa –
Johannesburg 2

Annual Report 2024 19

Who we are

Pioneers of Delivering Refreshment

Sustainably, One Sip at a Time
At Varun Beverages Limited (‘VBL’ or ‘We’ or ‘Our’), we are committed
to revitalizing lives by quenching thirst, holding a prestigious position
as one of PepsiCo's largest franchisees and a leading force in the
beverage industry.

In association with

PEPSIC
With over three decades of
partnership, we are a key player
globally and the second-largest
PepsiCo franchisee (outside the US).
We produce and distribute an
extensive range of carbonated
and non-carbonated beverages
under PepsiCo trademarks, steadily
expanding our footprint and product
offerings year-on-year.

20 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

VISION
To be the most admired
beverage company in all
VBL our markets
- Demand delivery
• Production facilities
• Sales and distribution – GTM VALUES
and logistics
• In-outlet management –
visi-coolers
• Consumer push management
(BTL) - Market share gains
Community Inclusivity and
responsibility diversity

ICO
engagement
Symbiotic Relationship

Customer Partnership and

satisfaction collaboration

Social Employee
responsibility empowerment

PepsiCo
- Demand creation
• Trademarks Integrity and Environmental
transparency responsibility
• Formulation through
concentrate
• Product and packaging
innovation through investment
in R&D
• Consumer pull management Ethical business
(ATL) - Brand development practices

Annual Report 2024 21

Who we are

As part of our strategic growth in Africa, we have strengthened our

presence by acquiring a 100% stake in The Beverage Company Proprietary
Limited (BevCo), South Africa, for manufacturing and distribution.

Building on this momentum, we signed a share purchase appointed the exclusive manufacturer and packager
agreement with Tanzania Bottling Company SA and of Cheetos in Morocco, complementing our existing
Ghana Bottling Company Limited to acquire 100% share distribution of Lay’s, Cheetos, and Doritos.
capital of SBC Tanzania Limited and SBC Beverages
Furthering this growth, Varun Zimbabwe and Varun
Ghana Limited respectively, subject to regulatory and
Zambia have partnered with Premier Nutrition Trading
other approvals, including but not limited to PepsiCo Inc.
LLC, Dubai (a subsidiary of PepsiCo Inc.) to manufacture,
Our expansion goes beyond beverages, as we deepen distribute, and sell Simba Munchiez in Zimbabwe and
our presence in the snacks segment. Varun Beverages Zambia, where distribution has already begun.
Morocco SA, a wholly-owned subsidiary, has been

We hold franchises across

26 states and
6 union territories ,
India with India contributing approximately
- The primary zone
72% of our net
operational revenues
in CY 2024.

Our international operations span

9 countries with
franchise rights ,

Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe,

International South Africa, Lesotho, Eswatini & DRC
- The evolving zone
4 countries with
distribution rights
for Namibia, Botswana, Mozambique and
Madagascar

Map not to scale

22 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Share of revenue Numbers that define our legacy

28%
33+ Years 90%+
Of business association Accountability of
with PepsiCo sales volumes of
PepsiCo in India

72%
1.4+ Billion 4.0+ Million
Target consumers Retail outlets catered
India International

14 Countries 16,000+
Geographical presence Employees

Key player in the global beverage industry

and the second-largest franchisee of
PepsiCo in the world (outside US)

Annual Report 2024 23

Who we are

We are embedding sustainability at the core of our operations and growth

strategy. As a company, we prioritize sustainable practices that extend beyond
the business we do on a day-to-day basis, positively impacting the environment
and society around us.

Throughout our long-standing

partnership as

PEPSICO’S 2ND LARGEST

FRANCHISEE OUTSIDE USA
our focus remains committed to sustainability.
Every initiative we undertake is aligned with fostering inclusive growth, benefiting both our
organization and the communities we serve. This holistic approach ensures that our growth
as a business is responsible and contributes to broader societal well-being. Our philosophy of
collective prosperity drives us to balance business success with our environmental and social
responsibilities, ensuring long-term value creation for all stakeholders.

24 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Stakeholders impacted

Consumers Investors Business partners

Delivering wide range Providing best-in-class Fostering an inclusive
of carbonated and non- returns on investment growth culture for
carbonated beverages to to maintain the all-round benefit
cater the dynamic demands ecosystem of trust

Employees Communities Environment

Providing growth Supporting initiatives that Adhered to prudent
opportunities to become enhance local livelihoods, water management
the future leader promote education, and methodologies to offset
foster social development the environment footprint

Water
stewardship
Refer to 56 pg

People and Energy

community efficiency
Refer to 114 pg Refer to 70 pg

Our pillars of
sustainability
Corporate Waste
governance management
Refer to 104 pg Refer to 66 pg

Human capital
management
Refer to 84 pg

Annual Report 2024 25

Subsidiaries, Associates & Joint Ventures

Subsidiaries, Associates and

Joint Ventures
Subsidiary
Varun Beverages (Nepal) Varun Beverages Lanka Varun Beverages Ole Spring Bottlers
Private Limited (Private) Limited Morocco SA (Private) Limited

100% 100% 100% 100%

Shares Held Shares Held Shares Held Shares Held

Varun Beverages Varun Beverages Varun Beverages Lunarmech Technologies

(Zambia) Limited (Zimbabwe) (Private) RDC SAS Private Limited
Limited
90% 85% 99.9% 100%
Shares Held Shares Held Shares Held Shares Held

Varun Beverages Varun Beverages South VBL Mozambique, SA The Beverage Company
International DMCC Africa (PTY) Ltd. Proprietary Limited

100% 100% 99% 95%

Shares Held Shares Held Shares Held Shares Held

Varun Foods (Zimbabwe) The Beverage Company Little Green Beverages Softbev Proprietary
(Private) Limited Bidco Proprietary Limited Proprietary Limited Limited

100% 100% 100% 100%

Shares Held Shares Held Shares Held Shares Held

Joint Venture Associate

IDVB Recycling Operations Clean Max Tav Private Huoban Energy 7 Private
Private Limited Limited Limited

50% 26% 26.34%

Shares Held Shares Held Shares Held

26 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Membership Associations & Business Relationships

Name of the Trade & Industry Reach of Trade & Industry

Chambers/Associations Chambers/Associations
(State/National)

Federation of Indian Chambers National

of Commerce and Industry

PHD Chamber of Commerce National

and Industry

The Associated Chambers of National

Commerce and Industry of India

Action Alliance for Recycling National

Beverage Cartons

Confederation of Indian Industry National

Annual Report 2024 27

Performance Highlights

Driving Consistent Results Year after Year

We have shown strong performance, driven by strategic growth initiatives and
operational excellence. Our expanded distribution, market penetration, and
product offerings have fueled robust results. This performance positions us well
for continued growth and value creation moving forward.

Financial
Profit and loss indicators
Net revenue (` in Million) EBITDA (` in Million)

200,077 47,111

160,426 36,095

131,731 27,881

88,232 16,546
71,296 14,477 12,019
64,501

2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024

6-year CAGR: 22.9% 6-year CAGR: 26.6%

Y-o-Y: 24.7% Y-o-Y: 30.5%

EBITDA margin (%)

23.5
22.5
21.2
20.3
18.6 18.8

2019 2020 2021 2022 2023 2024

Y-o-Y: 105 bps

28 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

PAT (` in Million) PAT margin (%)

26,343 13.2
13.1
11.8
21,018

15,501 8.5

6.6
5.5
7,461
4,722
3,573

2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024

6-year CAGR: 41%

Y-o-Y: 6 bps
Y-o-Y: 25.3%

Net worth (` in Million)

167,396

70,847
52,155
41,967
33,591 35,888

2019 2020 2021 2022 2023 2024

6-year CAGR: 37.9%

Annual Report 2024 29

Business developments for CY 2024

Acquisition of South Africa and Acquisition of Tanzania and

neighbouring territories: Ghana territories:
• On March 26, 2024, VBL consummated the • On November 13, 2024, your Company entered
acquisition of The Beverage Company Proprietary into share purchase agreements with Tanzania
Limited, South Africa along with its wholly-owned Bottling Company SA and Ghana Bottling
subsidiaries ("BevCo"). Accordingly, BevCo Company Limited to acquire 100% share capital
became the subsidiary of the Company of SBC Tanzania Limited and SBC Beverages
• This acquisition allowed the Company to Ghana Limited respectively, subject to regulatory
consolidate its presence in franchised territories and other approvals, including but not limited to
in South Africa, Lesotho, and Eswatini, as well PepsiCo Inc. at an Equity value of ~ USD 154.50 mn
as territories with distribution rights in Namibia, for Tanzania and ~ USD 15.06 mn for Ghana
Botswana, Mozambique, and Madagascar

Exclusive Snacks Franchising Appointment with PepsiCo for

Morocco, Zimbabwe and Zambia:

• Varun Beverages Morocco SA (a wholly-owned Franchising Appointment with Premier Nutrition

subsidiary of the Company) entered into an Trading LLC, Dubai (subsidiary of PepsiCo Inc.) to
Exclusive Snacks Appointment Agreement to manufacture, distribute, and sell “Simba Munchiez”
manufacture and package Cheetos in the territory in the territory of Zimbabwe & Zambia
of Morocco. This appointment is in addition to • Distribution in Zimbabwe and Zambia has started
the existing distribution agreement for PepsiCo’s w.e.f. February 1, 2025. Manufacturing facilities
snacks portfolio consisting of Lays, Cheetos, are expected to be operational for Morocco on
Doritos in the territory of Morocco or before May 1, 2025, Zimbabwe on or before
• Varun Zimbabwe and Varun Zambia (subsidiaries October 1, 2025 and for Zambia on or before
of the Company) entered into an Exclusive Snacks April 1, 2026

Qualified Institutions Placement

(QIP) Issue:
• The Company raised ~ ` 75,000 Million through
fresh issue of 132,743,362 equity shares

30 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Details of Business Activities (Accounting for More Than 90% of the Turnover)

Description of Main Activity Description of Business Activity % of Turnover of The Entity

Manufacturing of Beverages Manufacturing of carbonated, Non-carbonated

99.2%*
beverages and packaged drinking water

*on consolidated basis

Economic Value Generated CY 2024 CY 2023

Direct Economic Value Generated 2,00,076.5 1,60,425.8

(Refer note 1)

Economic Value Distributed 1,76,166.6 1,41,083.4

Employee Wages and Benefits 18,850.3 14,465.9

Operating Costs (Refer note 2) 1,43,271.5 1,16,504.7

Payments to providers of capital (Refer note 3) 7,752.4 4,954.5

Payments to Governments (Refer note 4) 5,974.5 4,988.9

Community Investments (CSR) 317.9 169.4

Economic Value Retained = 23,909.9 19,342.4

Direct Economic Value Generated Less
Economic Value Distributed

Note: 1 Revenue generated net of excise duty excluding other income

2. Operating cost includes Raw material consumed, Purchase of finished goods, increase/decrease in WIP, depreciation & other
expenses excluding CSR
3. Payment to providers of capital includes finance cost paid and dividend paid to shareholders
4. Payments to government includes Corporate tax (excluding Interest u/s 234A/234B/234C) for the financial year

Annual Report 2024 31

Our Board: Enriched by Diversity, Focused
on Value
Ravi Jaipuria He is the Promoter & Chairman of the Company and has over four decades
Promoter & Non- of experience in conceptualizing, executing, developing and expanding
Executive Chairman food, beverages and dairy business in South Asia and Africa. He has
an established reputation as an entrepreneur and business leader and
is the only Indian Company’s promoter to receive PepsiCo’s award for
International Bottler of the Year, awarded in 1997. He was also awarded
the ‘Distinguished Entrepreneurship Award’ at the PHD Chamber Annual
Awards for Excellence 2018.

He is the Promoter & Executive Vice Chairman of the Company. He has

been actively working with the Company since 2009 and has been
Varun Jaipuria instrumental in comprehensive development of Company’s business
Promoter, Executive including acquisitions and integration of acquired territories. Under his
Vice-Chairman and leadership, Varun Beverages was awarded PepsiCo’s International Bottler
Whole-time Director of the Year in 2023 and Best Bottler in AMESA (Africa, Middle East and
South Asia) sector in 2021 in recognition of Company’s operational
excellence, governance practices and sustainability initiatives. He
attended Bachelor’s degree program in international business from the
Regent’s University, London. He is a Harvard Alumni and had attended
Program for Leadership Development (PLD), 2018-2019 batch from
Harvard Business School, Boston.

Raj Gandhi He is a Chartered Accountant of 1980 batch. He also participated in a

residential management program on Venture Capital and Private Equity at
Whole-time Director
Harvard Business School. Out of his experience of 44 years, 32 years are
with the current group namely RJ Corp. As a member of its core team, he
is on the Board and several committees of NSE & BSE listed entities namely
Varun Beverages Limited and Devyani International Limited. Being a Whole
Time Director, he is instrumental in formulating company’s growth strategy.
He oversees M&As, expansion and diversification activities of the Group.
He spearheaded the public listing of Group’s two companies. He enjoys
longstanding relationship with institutional investors and lenders and meets
FIIs on regular basis as a part of investor relations.

Rajinder Jeet He holds a master’s degree in mechanical engineering from the Indian
Singh Bagga Institute of Technology, Kanpur. He has been associated with the
Whole-time Director Company since 1996 and is currently heading technical operations since
2003. He has an experience of 28 years with the Company in managing
technical operations and execution of projects. Prior to this, he was
associated with Eveready Industries India Limited for approximately
10 years and was last working in the capacity as their production manager.

Dr. Naresh Trehan He is a Graduate from King George Medical College and a renowned
Non-Executive Non- Cardiothoracic Surgeon by the American Board of Thoracic Surgery. He has
Independent Director trained & practised at New York University Medical Center at Manhattan
USA from July 1, 1971 to June 30, 1975 and is an honorary fellow at the
Royal Australasian College of Surgeons. He has received many prestigious
awards, including the Padma Bhushan Award, presented by the Government
of India. He is a Diplomate from the American Board of Surgery and the
American Board of Cardiothoracic Surgery and has around 50 years of
vast experience.

32 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Dr. Ravi Gupta He holds a Bachelor’s degree and a Master’s degree in commerce from
Independent Director the University of Delhi. He also holds a Bachelor’s degree in law from the
University of Delhi, a diploma in labor law from the Indian Law Institute, a
Master’s degree in business administration from the Faculty of Management
Studies, University of Delhi and a doctorate in philosophy for his thesis
on ‘Country Risk Analysis in Investment Financing Decision Making’ from
the University of Delhi. He was employed as an Associate Professor in the
commerce department of Shri Ram College of Commerce, University of
Delhi. He was appointed by the Government of India as a member of the
committee constituted for simplification of Income Tax Act. He was also
nominated by the government to the Central Council of the Institute of
Chartered Accountants of India. He is Founder and President of Tax Law
Educare Society, a non-profit making voluntary organization, with the main
objective to educate general public and professionals on Taxation, Law and
Allied Matters for last 16 years.

Sita Khosla She holds Bachelor’s of Arts degree from St. Stephen’s College and LLB
Independent Director from the Faculty of Law, University of Delhi and is enrolled with the Bar
Council of Delhi. She practices in the areas of corporate, contract and
commercial laws since 1992. She has been involved in providing advice on
a wide range of issues from company formation, corporate governance
and regulatory compliance to mergers and acquisitions, corporate
restructuring, joint ventures, foreign investments, exchange control
regulations and securities laws. She has acted as India legal advisor to
major players in the civil aviation sector including international commercial
airlines, MRO organizations and ground handling operators in respect of
their operations in India.

She holds a bachelor’s degree in Arts from the University of Delhi and is a
Rashmi Dhariwal
practising advocate at the Calcutta High Court since 1978. She is also the
Independent Director chairperson of a non-profit organization called Prayatn which provides
education to underprivileged children. She has also worked in several
leading firms in India including Khaitan & Co, Calcutta and Delhi, Mulla &
Mulla, Mumbai and also in the Philippines.

He is a graduate in Economics from Delhi University and Masters in

Management Studies from Jamnalal Bajaj Institute, Bombay University
Abhiram Seth with specialization in marketing. He is the Managing Director of Aquagri
Independent Director since 2008 that is focused on promoting Aqua Agriculture through
self-help groups amongst the coastal communities. He started his career
with Hindustan Lever Limited in 1975 where he worked in the Sales and
Marketing function and then moved on to the MGF group, where he looked
after the industrial gases business. Since 1993, he was the Executive
Director – Exports and External Affairs for PepsiCo India and in 2001, at
PepsiCo he took on additional responsibility of driving the sustainability
agenda and external affairs.

He is B.Tech from IIT Delhi and Master of Business Administration from

Anil Kumar Sondhi Faculty of Management Studies, Delhi University. He has more than 45
Independent Director years experience in the areas of Projects, Manufacturing & Technical
operations of process industry. He has worked as Director – Projects,
Director – Quality & Food Safety for PepsiCo India Holdings Pvt. Ltd.,
Chief of Technical Operations & Supply Chain for NourishCo Beverages
Pvt. Ltd. (Tata PepsiCo JV) and Vice President – Operations of Safe Water
Network. During the early years of career, he worked for manufacturing
as well as projects for heavy chemicals like Acids, Oleums, Caustic Soda,
Chlorine, Edible Oils, Fats and Calcium Carbide with Shriram Industrial
Enterprises Limited.

Annual Report 2024 33

DRIVING
SUSTAINABLE
GROWTH,
STEADILY
Sustainability is firmly rooted in our business, driving
impactful practices and global partnerships for a
greener future. This year, our strengthened efforts
further improved energy and water efficiency while
advancing plastic waste recycling, reinforcing our
commitment to carbon positivity.
 About the
ESG Report

36 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Content of the report For detailed disclosure mapping, please refer

We have identified 10 specific areas in which our ESG to the GRI index in the report’s appendix.
issues can be classified. These are Water Management, The report is also available on our Company’s
Carbon Footprint & Emissions, Product Safety & Quality, website: www.varunbeverages.com. We value our
Consumer Health & Nutrition, Corporate Citizenship, stakeholders and the relationship we share.
Employee Health & Safety, Packaging Lifecycle
Management, Business Performance, Corporate Please direct your concerns and feedback on this report
Governance, and Business Ethics. to complianceofficer@rjcorp.in

Reporting guidelines and principles This report serves as a platform to showcase our
Environmental, Social, and Governance (ESG) initiatives
This report discloses the sustainability initiatives taken
and accomplishments for the reporting year, along with
by Varun Beverages Limited across the identified
outlining our future roadmap.
material topics and captures their impact on our
stakeholders. Our performance against such initiatives
ESG: Our approach
have also been measured and recorded. We have also
gathered comprehensive data on the measures followed Being a responsible corporate citizen, we understand
by us as a responsible corporate citizen, a trusted the long-term impact that diverse aspects may have
beverage business, a people-centric organization, and a on our business and the communities that we operate
sustainability advocate. in as well as recognize the need to manage such issues
for delivering higher value to our consumers. To achieve
We have also made disclosures of our data and this, we actively engage with our consumers, employees,
processes in line with SEBI’s new mandate through communities, government, and other stakeholders,
our Business Responsibility and Sustainability Report enabling suitable handling of the issues and taking
exclusive of our ESG report. sustainable action.

Details of it can be found in our Business Responsibility Refer to Page 42 for more information on how we
and Sustainability Report. engage with our stakeholders.

Reporting reference Scope and boundary of reporting and its

period
This report is prepared in accordance with the GRI
reporting standard. The foundation of this report rests The Report covers financial and non-financial
on the principles of transparency, consistency, reliability, information and activities of subsidiaries of Varun
completeness, and materiality as outlined by the GRI Beverages Limited for the period January 1, 2024 to
reporting standards. December 31, 2024. This Annual Report 2024 with GRI
Index is externally assured by an independent assurer,
Additionally, the report aligns with the United Deutsch Quality Systems (DQS) India) Pvt. Ltd in
Nations Sustainable Development Goals (UN SDGs) accordance with:
recommendations. In compliance with SEBI’s
ISAE 3000 (Revised):
new mandate, our Business Responsibility and
Sustainability Report disclosed, is distinct from our ESG International Standard on Assurance Engagements
sustainability report. (Assurance on Non-Financial Information)

ISO 14064:2019 Part 3:

In presenting this information, we aim for
comprehensive transparency, relying on the integrity Specification with guidance for the verification and
and robustness of the disclosed data to provide validation of greenhouse gas statements.
consolidated insights. This report showcases our
The financial information has been audited by M/s.
progress in communicating various sustainability
J.C. Bhalla & Co and M/s. O.P. Bagla & Co LLP, our joint
initiatives to our stakeholders, symbolizing the
statutory auditors.
collaborative efforts within our organization to advance
our sustainability goals. As we continue this journey, The reporting scope and boundary for our disclosures,
our team, in collaboration with leadership, has carefully unless otherwise stated, covers the operations of Varun
reflected and consolidated our commitment and efforts Beverages Limited.
toward sustainability.
Geographies covered
Our entire operations in India and International markets.

Annual Report 2024 37

Promoter, Executive Vice-Chairman and WTD’s Message

Building a Future that’s Ready and Steady

Dear Stakeholders,
At Varun Beverages, sustainability
is not a choice; it is an imperative
that underpins how we operate and
grow. As one of the world’s leading
beverage manufacturers, our role
extends beyond quenching thirst.
We ensure that every step of our
value chain contributes positively
to the planet, our people, and the
communities we serve.

Varun Jaipuria
Promoter, Executive Vice-Chairman and
Whole-time Director

The world around us is changing rapidly. Consumers water positivity, and enhancing our renewable energy
today demand more than just refreshing beverages. mix. In alignment with our sustainability roadmap, we
They actually seek for responsible brands that stand for continued integrating responsible sourcing, increasing
environmental stewardship, social progress, and ethical PET bottle recycling rates, and fostering social equity
governance. At VBL, we recognize this shift and remain through workforce inclusion and community initiatives.
persistent in our ESG commitments, ensuring that our
business scales sustainably while leaving a positive Demonstrating our commitment to
impact on society. environmental stewardship
We took significant strides in reducing our ecological
Growing responsibly, sustaining progress
footprint. We continued our efforts to integrate
In CY 2024, we reinforced our footprint across global
renewable energy into our operations, with 16% of
markets, expanding operations into South Africa and
our total energy consumption now derived from
securing distribution rights in Namibia, Botswana,
sustainable sources, reinforcing our dedication to
Mozambique, and Madagascar. Our entry into the
clean energy adoption. Water conservation remained
Democratic Republic of Congo (DRC), along with
a key priority, and through targeted initiatives, we
pending acquisitions in Tanzania and Ghana, marks
another stride toward becoming a stronger global achieved a 19% reduction in water usage per liter
player. In India, we deepened our distribution network, of beverage production compared to the base year
added new Greenfield facilities, and strengthened last- 2020 further strengthening our position as a water-
mile reach, all while embedding sustainability into our positive organization. Our approach to plastic waste
growth model. management also saw substantial progress as we moved
closer to our goal of 100% PET bottle recycling by 2025,
Our ESG focus remains consistent. This year, we
achieving 88% recycling in CY 2024 – an improvement of
accelerated our sustainability efforts with a clear
2% points over the previous year.
emphasis on optimizing our carbon footprint, advancing

38 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Additionally, our focused measures on energy efficiency,

Our near-term targets, validated
sustainable sourcing, and operational improvements
have reinforced our commitment to climate action. Our by the Science Based Targets
collaborations with sustainability partners, including GEM initiative (SBTi), set a clear path
Enviro Management Ltd. and Deutsch Quality Systems, to reduce absolute Scope 1 and 2
have played a vital role in monitoring and enhancing
our waste management systems, carbon footprint
GHG emissions by 60% by 2033
tracking, and water conservation efforts. These collective from a 2023 baseline, alongside a
initiatives reaffirm our pledge to balance business growth 60% reduction in absolute Scope 3
with environmental responsibility, ensuring that we
operate in a manner that is both resource-efficient and
emissions. Furthermore, we are
future-focused. committed to reaching net-zero
Upholding social responsibility emissions across our value chain
People remain at the heart of our sustainability journey. by 2050. Our efforts have been
We promised to shape a safe, inclusive, and empowering recognized with a strong CDP
environment for our employees and the communities
score, reflecting our transparency
we serve. Workplace safety remained a top priority, and
through our collaboration with DuPont Safety Solutions, and dedication to sustainability.
we further strengthened best practices across our This validation reinforces our
manufacturing plants, ensuring a safer and more secure
ambition to drive meaningful
work environment.
change and lead the industry
In our continued efforts to align business growth with
responsible employment practices, we introduced
towards a lower-carbon future.
structured ESG-linked incentive programs, motivating
our employees to actively contribute to our sustainability
goals. Diversity and inclusion remained key focus
areas, as we worked towards building a workforce that
promotes gender equity, fosters innovation, and enables
holistic professional growth. engagement. Our focus on regulatory compliance and
risk management remains unwavering, ensuring that we
Beyond our organization, we continued to create uphold the highest standards of corporate responsibility.
meaningful social impact through targeted community
development initiatives. Our collaboration with Shiksha Future-ready, eco-steady
Kendra School enabled access to quality education for Looking ahead, we remain committed to driving
over ~34,000 underprivileged students till now, while impactful change through our sustainability agenda.
our AARU Clinics provided essential healthcare services Our journey towards becoming a net-zero organization
to more than 3,40,000+ individuals across India and will be shaped by continuous innovation, responsible
Nepal. Additionally, our skill development initiative, resource management, and collaboration with
Pravah, empowered over 17,000+ young individuals stakeholders who share our vision. By 2025, we aim to
with the tools and training needed to secure sustainable achieve 100% PET bottle recycling and further accelerate
livelihood opportunities. By prioritizing the well-being of our efforts in water positivity and renewable energy
our employees and the broader community, we remain adoption.
committed to creating a future that is both ready for As we move forward into yet another transformative
change and steady in its focus on social progress. year, we stay true to our promise to grow responsibly,
Strengthening governance and ethical act decisively, and build a future that is not only
leadership prosperous but also sustainable.

Governance remains a cornerstone of our sustainability Warm Regards,

philosophy. We continued to strengthen our governance
framework to ensure transparency, accountability, and Varun Jaipuria
ethical business conduct. By expanding ESG-centric Promoter, Executive Vice-Chairman &
policies across our supply chain, we have reinforced Whole-time Director
our commitment to responsible sourcing and supplier

Annual Report 2024 39

Value creation model

Shaping a Future-ready, Value-driven Path

What we depend on The process

Financial capital What we do

Raised ` 75,000 Million by We manufacture, distribute, and sell a wide range of beverages
issuance of equity shares and value-added products under PepsiCo’s iconic trademarks. Our
through QIP portfolio includes carbonated soft drinks (CSDs), non-carbonated
beverages (NCBs), packaged drinking water, and snacks, all
designed to cater to the diverse preferences of our consumers.

Why we do it
Manufacturing capital
48 state-of-the-art
production facilities. 36 in
India and 12 in International Vision ESG mission
territories We will be the While refreshing billions of consumers
most admired with a vast portfolio of beverages
beverage company touching all age groups, we shall ensure
in all our markets. a suitable ecosystem with a positive
Intellectual capital impact on our planet and well being.
Consumer insights,
technology, know-how and Built on our values
R&D capabilities

Inclusivity and Community Partnership and

diversity responsibility collaboration
Human capital engagement
16,000+ talented employees
across our operating
locations
Customer Employee Social
satisfaction empowerment responsibility

Social and
relationship capital
Spent nearly Environmental Integrity and Ethical business
` 317.9 Million on CSR responsibility transparency practices

Natural capital
New installments towards
climate positively

Contributing to our
SDG Goals

40 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

At the heart of our value creation model is a commitment to shaping a

sustainable future while driving steady growth. We focus on innovation, prioritize
eco-conscious practices, and build strong partnerships to deliver lasting value for
all our stakeholders.

The value we created The impact we delivered

Business focus areas Financial capital Supporting our customers

Strong growth in revenue, profit and in creating availability,
cashflow accessibility and
consistency of our products
Manufacturing Distribution and with improved nutrition and
warehousing functionality while ensuring
a better impact for the
planet.
Manufacturing capital
Operational efficiencies through Beneficiaries
Customer In-market
reduced production overheads
management execution
Consumers
We deliver a diverse range
of carbonated and non-
carbonated beverages to
Cost Cash Intellectual capital meet the ever-evolving
efficiencies management preferences of our
Customer satisfaction
customers.

Investors
We ensure exceptional
returns on investment,
fostering a reliable and
Growth levers Human capital trust-driven ecosystem.
We are proud to be recognized as a
Great Place to Work. Business Partners
We nurture an inclusive
growth culture, creating
Solid Robust supply opportunities for mutual
infrastructure chain success and all-around
benefits.
Social and
relationship capital Employees
Making a difference by helping the We provide ample growth
Demand Market share communities around us with health, opportunities, empowering
delivery gains nutrition, sustainable living. our workforce to become
future leaders.

Environment
Margin ROE We are committed to
expansion expansion sustainable practices,
Natural capital implementing effective
Increasing renewable energy water management
strategies to minimize our
environmental footprint.

Annual Report 2024 41

Stakeholder communications

Focusing More on
Empowering Our Pillars
At Varun Beverages, we believe that the foundation of our success lies in the
strength of our relationships with key stakeholders. By maintaining open and
ongoing dialogues, we ensure our strategies align with their evolving needs,
driving mutual growth and sustainability. Our responsbility to safeguarding their
interests and creating lasting value is reflected in how we engage with internal
and external stakeholders, fostering trust, transparency, and collaboration to build
a more sustainable future together.

Key stakeholder groups

Internal stakeholders External stakeholders

Management Employees Suppliers Retailers/consumers Industry association

Conduct a materiality
analysis to identify and
prioritize key issues

Engage and Implement

empower teams standardized
to make decisions reporting
that support the frameworks to
sustainability Stakeholder measure and
strategy engagement communicate
process impact

Align the Set clear,

sustainability achievable, and
strategy with overall measurable
business objectives goals using
industry-standard
frameworks

42 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

How we engaged with our pillars

Stakeholder Engagement Pattern Key Concerns Frequency of

Engagement

Business Performance Quarterly

Business Ethics

Supply Chain Management

Management Interviews, Board meetings Carbon Footprint & Emissions

Energy Management

Waste Management

Resource Use & Conservation

Occupational Health & Safety Need-based

Freedom of Association
Facilitated discussions,
Surveys, Townhall meetings, Diversity & Inclusion
Leadership meetings, Email
Employees Talent Management
communications, Employee
engagement activities, Community Engagement
Webinars
Employee Engagement & Development

Human Rights & Fair Labor Practices

Product Safety & Quality Need-based

Human Rights & Fair Labor Practices

Responsible Sourcing
Individual and broad-based
communications, Supplier Sustainable Agriculture
Suppliers
trainings, assessments, and Packaging Lifecycle Management
remediation processes
Regulation & Taxation

Environmental Stewardship

Diversity & Inclusion

Product Labelling Need-based

Responsible Marketing
Surveys, Corporate websites,
Retailers/ Marketing activities & Consumer Health & Nutrition
Consumers communication, Social media
Corporate Citizenship

Product Safety & Quality

Business Performance Annually

Innovation and R&D

Surveys, Annual &
Sustainability Reports, Human Rights & Fair Labor Practices
Industry
Ratings, rankings and other
Association Sustainable Initiatives
indices, Social media
Product Safety & Quality

Annual Report 2024 43

Materiality

Prioritizing What Matters

To drive our sustainability efforts and align with our business goals, we
conducted a materiality assessment aimed at identifying key aspects critical
to our performance and impact. This assessment, guided by GRI principles
and in collaboration with Deutsch Quality Systems (DQS), helps us focus on
the most relevant Environmental, Social, and Governance (ESG) areas for
long-term growth.

About DQS
DQS India, a subsidiary of DQS STEP 1
Holding GmbH, is a globally Identifying key
recognized expert in management stakeholders
system certification, assessment,
and training, bringing invaluable
insight to our materiality assessment
STEP 5 STEP 2
process.
Finalizing priority Crafting
topics for goal- engagement
Key goal setting and Assessment techniques
strategic alignment steps
Our goal was to identify and
prioritize the economic, social, and
environmental aspects that are most
material to the company's long-term
success. STEP 4 STEP 3
Evaluating the impact Brainstorming
of each aspect material aspects

Consistent re-evaluation Finalizing material aspects:

As the business environment The process
evolves, so do the priorities and In collaboration with DQS, we
concerns of our stakeholders. adopted a two-pronged approach
To ensure we stay aligned with to determine our material aspects:
changing industry demands and stakeholder engagement and
corporate goals, we commit to impact assessment. After identifying
regularly re-evaluating the material five key stakeholder groups, we
aspects through ongoing dialogues engaged them through surveys
with stakeholders. and discussions, identifying 29
metrics of high importance. These
metrics will evolve based on internal
and external factors, ensuring our
strategies remain adaptable.

44 Varun Beverages Limited

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The 5 pillars of material aspects: Our ESG focus areas

The material aspects we identified 1. Environmental Through a comprehensive review
are grouped into five core 2. Social Capital of materiality assessments within
categories, aligned with the GRI the beverages industry, these
3. Human Capital
and United Nations Sustainable pillars were carefully chosen to
Development Goals (SDGs). At VBL, 4. Business Model & Innovation guide our strategic focus and drive
we refer to them as the '5 Pillars of 5. Leadership & Governance sustainable growth.
Material Aspects’, which include:

Environmental Social Capital Human Capital

• Water management • Product safety and quality • Employee health and safety
• Carbon footprint • Consumer health and • Diversity, equity and
• Energy management nutrition inclusion
• Waste management • Corporate citizenship • Employee engagement and
• Ecological impact • Human rights and fair labor development
practices
• Talent recruitment and
UNSDG's Catered to: • Product labelling retention
• Responsible marketing
• Sanitation and hygiene UNSDG's Catered to:
• Data privacy and
information security
• Rural livelihood and
generation

UNSDG's Catered to:

Business Model & Innovation

• Packaging lifestyle
management
• Business performance
• Responsible sourcing
• Supply chain management
• Innovation and R&D
• Sustainable agriculture Leadership and Governance
• Resource use and • Corporate governance
conservation
• Business ethics
UNSDG's Catered to: • Regulation and taxation
• Advocacy and public
policy

UNSDG's Catered to:

Annual Report 2024 45

 Materiality Matrix

High

Consumer Health & Carbon Footprint &

Nutrition Emissions
Business Water
Performance Management
Human Rights & Corporate
Fair Labor Practices Citizenship
Packaging Lifecycle
External Relevance (Stakeholder Priorities)

Responsible
Sourcing Management
Business
Product Safety & Quality
Supply Chain Ethics
Management Employee Health & Safety
Product Labeling Regulation &
Ecological Taxation Energy Corporate Governance
Impact Sustainable Agriculture Management Waste Management
Resource Use & Responsible Diversity, Equity & Inclusion
Conservation Marketing
Innovation & R&D
Sanitation & Data Privacy &
Hygiene Information Employee Engagement &
Security Development

Advocacy &
Rural Livelihood Public Policy
Generation Talent Recruitment &
Retention

Low Internal Relevance High

Ranking

Pillar Material Aspects Ranking

Water Management 1
Environment
Carbon Footprint & Emissions 2

Product Safety & Quality 4

Social Capital Consumer Health & Nutrition 5

Corporate Citizenship 9

Human Capital Employee Health & Safety 6

Packaging Lifecycle Management 3

Business Model and Innovation
Business Performance 10

Corporate Governance 7
Leadership & Governance
Business Ethics 8

Environment Social Capital Human Capital Business Model and Innovation Leadership & Governance

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Annual Report 2024 47

ESG at a Glance
At VBL, sustainability forms the core of our business ethos, driving us to embed
environmentally and socially responsible practices across our diverse operations.
Over the years, we have cultivated a robust ESG framework, seamlessly
integrating sustainable principles into our strategies, processes, and partnerships.
By improving energy and water efficiency, recycling plastic waste, and working
towards carbon positivity, we actively contribute to a sustainable economy
and society.

Our proactive approach ensures ESG Mission ESG Vision

we stay ahead of emerging
While refreshing billions of At VBL, we are committed to
environmental and social trends
consumers with a vast portfolio of achieving net-zero emissions while
while upholding human rights
beverages touching all age groups, driving sustainable growth through
and mitigating risks tied to public
we shall ensure a sustainable environmental responsibility, social
policies and regulations. Guided by
ecosystem with a positive impact on equity, and strong governance,
a strong commitment to creating
our planet and well-being. creating long-term value for our
long-term value, we strive to align
stakeholders and the planet.
our goals with the expectations
of stakeholders and the larger
community.

Key ESG priorities

ENVIRONMENT SOCIAL GOVERNANCE

Water stewardship Human capital management Corporate governance

and diversity

Waste management Health and safety Code of conduct, Anti-bribery,

FCPA and POSH

Renewable energy Community engagement Transparency, responsibility

and accountability

Carbon emission reduction Nutrition and product safety risk Risk management

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The ESG way of doing business

Integrating ESG priorities into our everyday operations and policies remains central to our mission of fostering
a sustainable ecosystem for all stakeholders. Building on the significant progress we made in 2023, we are now
focused on achieving key milestones in CY 2024. Our ambitious goals for this year include further reducing plastic
waste, advancing our journey towards water positivity, and taking bold steps to lower our carbon footprint while
ramping up renewable energy adoption. These initiatives lay the foundation for our long-term sustainability vision,
with 2030 targets in sight.

Key ESG milestones for 2024

19% 88% ~16%

Reduction in water used per Recycling of used PET Renewable Energy Mix in 2024
liter of beverage production bottles (2% points (3% points increase over 2023)
from base year CY 2020 increase over 2023)

Net-Zero CDP A List 2024

by 2050, Net-Zero targets, officially • A for Climate
validated by the Science Based • A- for Water Security
Targets initiative (SBTi).

Aspirational goals for tomorrow

Water Plastic waste Carbon footprint Enhancing

positivity management reduction renewable energy
Sustaining Water 100% recycling of used Committed to reaching Increasing contribution
Recharge of more than PET bottles by 2025 net-zero greenhouse from Renewable Energy
2.00x by 2025 (66% in 2020) gas emissions across to 30% by 2030
the value chain by (Vs 7% in 2020)
Reducing Water Usage
2050.
Ratio from 1.92x in 2020
to 1.40x by 2025

Annual Report 2024 49

ESG team

Leading the Charge for a

Sustainable Tomorrow
At VBL, ESG is more than a commitment; it is integral to how we operate.
Guided by a dedicated ESG Committee constituted by the Board, and a Steering
Committee comprising experts from diverse business functions, we ensure a
comprehensive and strategic approach to sustainability.

The ESG Committee identifies risks, The Steering Committee assumes Together, the Board and Steering
opportunities, and aligns VBL’s ESG a pivotal role in executing and Committees uphold VBL’s
efforts with global standards. Under monitoring the water stewardship, commitment to sustainable
the leadership of Vice-Chairman improving energy efficiency, waste practices, fostering accountability
Mr. Varun Jaipuria, the Board- management, diversity and health and innovation to meet the evolving
level committee steers initiatives & safety strategy. Their efforts expectations of stakeholders and
like water stewardship, water are bolstered by ongoing reviews regulatory demands.
management, energy efficiency, to address system gaps, improve
waste management, health & safety, processes, and enhance data
and diversity, ensuring alignment transparency.
with broader environmental and
social objectives.

Team structure
Advisors
Independent Professional
(Advisors to both ESG
Committee & Steering
Committee)

Overall
Management:
ESG Head and
Investor Relations
Board Level ESG Head Steering Committee
Committee ESG Head
Executive Vice Chairman Technical Head
2 Whole-time Directors (Board Member)
HR Head

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ENVIRONMENT SOCIAL GOVERNANCE

Functional Lead Plant Managers Head of Chief Risk Officer &

Leads (North/East/South/West) Industrial Relations Group Company Secretary

Functional AVP - ESG Quality Central HR Plant CFO Taxation

Team Head Packaging Team HRs Head
Head

Annual Audit Best Practices DuPont Best Corporate

DQS (H&S) Governance Practices
Award under Star of the
Industry Awards

Packaging and
Compliance
RM sourcing

Quality Human resources

Our team
comprise
Plant manufacturing Industrial relations
members
from
Investor relations Sales

Market equipment
Finance and taxation
management (Visi-coolers)

Annual Report 2024 51

ENVIRONMENT
About our environment

Committed to a Cleaner,
Greener Tomorrow
At VBL, environmental preservation
Key focus areas
is a core priority. We are steadfast in
our commitment to maintaining the
highest environmental standards and
Support biodiversity
best practices across all our activities. conservation and
Improve energy
efficiency
This dedication includes vigilant protect ecosystems
within our sphere of
monitoring, transparent reporting of
influence
our environmental performance, and
conducting regular environmental
audits. Minimize plastic Reduce
waste generation and Greenhouse Gas
Our proactive engagement with stakeholders reflects increase recycling (GHG) Emissions
our commitment to building trust and collaborating on rates
environmental issues. We are dedicated to minimizing
our environmental footprint while maintaining
operational excellence. To achieve this, we have
implemented a variety of initiatives and mitigation
Implement water conservation
strategies that underscore our commitment to
measures and reduce water
environmental sustainability.
consumption

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Regular environmental performance reports are prepared by the ESG Committee and presented to the Board of
Directors. These reports include progress toward achieving environmental objectives, key performance indicators,
and other relevant metrics.

Initiatives undertaken Details of the initiative Outcome of the initiative

Plastic waste Engaged Gem Enviro Management Ltd. Recycling of plastic waste
management for phased implementation (up to 100%)
recycling of used plastic waste from
end users

Water conservation Engaged DQS which verifies water mass Reduction in wastage of water
balance. We also undertook several other and recharge of water
initiatives towards water conservation
and water recharge

Reduced Grammage Packaging innovations introduced by Reduction in plastic usage

of Plastic Closures and PepsiCo India Holding in India through
Preforms (used for PET Global R&D and best practices
Bottles) Over the Years

Use of Fuels like Biomass We are proactive in adopting new Reduction in Greenhouse Gases
for Steam Generation, technologies that use cleaner fuels of
Usage of Solar Energy energy. Commissioned a solar power
at our manufacturing plant at Nuh and
Greater Noida and redesigned the power
generation units at many locations

Installation of Effluent Plants have installed online monitoring Effluents are treated and discharged
Treatment Plant systems in Effluent Treatment Plant under prescribed limits thereby
as well as Boiler emissions for all time remaining well within the prescribed
compliance which is being monitored by norms and consent conditions
CPCB on a real-time basis

Replenishing earth What we achieved

Water is vital for existence. Unarguably, one of the
most precious gifts on Earth, it demands responsible
management and preservation. 15.54 bn liters
India receives adequate rainfall every year. Most of Of water recharged in CY 2024
the rainwater freely flows back into the ocean without against 7.27 Billion liters consumed
adding much to the Earth’s groundwater level. Being an
environmental steward, Varun Beverages takes assorted
measures to harvest rainwater and replenish the
groundwater table. Our target
It has been our constant endeavor to recharge double
the water than we consume in producing our beverages,
nurturing sustainable balance in Earth’s underground 2:1
reservoirs. Sustain 2 times water
We remain committed to enhance the water recharge recharge vs water
levels in proportion to our growth in volume. It will consumed
be steered through key emphasis on reducing the
water usage ratio, adding to the water bodies and
strengthening our portfolio of ponds for rejuvenating,
maintenance and upkeep.

Annual Report 2024 55

Water Conservation
Global water levels are depleting due to factors like population growth, rapid
economic development, urbanization, and climate change, creating a strain on
natural water resources. As a beverage company committed to the fundamental
right to water, we prioritize optimizing water efficiency, treating waste water
responsibly, restoring fresh water sources, and replenishing more water than we
consume in our beverage manufacturing processes.

Key highlights 2024

1.56^ Liters 2.14 times

Of water per 1 liter Water recharge ratio
15.54 Billion 192
Liters of water Water bodies adopted
of final product for replenished in 2024 and maintained
beverage production
^Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of 2 new
greenfield plants in 2023 and 3 new greenfield plants in 2024.

Key focus areas We continue to proactively address water challenges

in regions with persistent water scarcity by minimizing
We have identified four core areas to realize our
reliance on underground reserves while ensuring minimal
water conservation goals. They are:
environmental impact.

Staying water positive

Sustainable water management lies at the heart of our
Rainwater Adoption and strategy. In 2024, we remain committed to replenishing
harvesting maintenance of ponds more water than we consume, reinforcing our position
& check dams as a water-positive company. For every liter of water
consumed in production, we replenished significantly
more, ensuring sustainable reserves for future generations.

The right to clean water

Wastewater Process
Access to clean water is essential for all forms of
management improvements
life. VBL is dedicated to using water responsibly and
fostering resilience in our value chain. For CY 2024, we
are intensifying efforts to:
• Reduce overall water consumption.
Focused initiatives for water stewardship
Reduce. Reuse. Recycle. • Enhance operational efficiency to ensure responsible
water use.
Our comprehensive Reduce, Reuse, Recycle strategy
remains central to VBL’s water management efforts. • Strengthen initiatives to safeguard clean water access
Key initiatives in CY 2024 include: for local ecosystems and communities.

• Reducing water use per liter of beverage produced

Wastewater management
and minimizing wastage at every stage of
operations. Ensuring the safe return of water to the environment is
a priority for VBL. In 2024, we reaffirm our commitment
• Enhancing water efficiency through advanced to treating 100% of wastewater generated across all
technologies, reuse practices, and multiple process manufacturing facilities in India through advanced
optimizations. effluent treatment plants. This guarantees that
• Replenishing groundwater via extensive rainwater the water discharged back into ecosystems meets
harvesting programs to promote sustainability. stringent quality standards, minimizing any potential
environmental impact.

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23
Manufacturing Plants certified safe for use of surface
Contribution made to overall production
Out of the 36 plants in India, 7 plants fall
in “over-exploited” / “critical” category of
water by Central Ground Water Authority of India Central Ground Water Authority of India which

7 6
contributed only ~14% of total production in
CY 2024. The balance 29 plants contributed
Plants categorized Plants are categorized ~86% of the total production in CY 2024.
as ‘Critical’ or ‘Over as ‘Semi-Critical’
exploited’

Water Audit
To monitor our water footprint and validate our efforts and outcome towards water stewardship, water audit is
regularly conducted by DQS India. All our manufacturing plants in India are covered under the scope of this audit.

Audit Report Key Findings

CY Water Beverage Water usage Water recharge Water No. of water

consumption production ration (In Billion Liters) recharge ratio bodies
(In Billion Liters) (In Billion Liters) adopted

2019 4.12 2.12 1.94 times 7.22 1.75 times 103

2020 3.74 1.95 1.92 times 10.19 2.72 times 108

2021 4.86 2.57 1.89 times 11.10 2.28 times 110

2022 6.32 3.72 1.70 times 12.79 2.02 times 116

2023 6.50 4.14 1.57^ times 12.95 2.00 times 124

2024 7.27 4.65 1.56^ times 15.54 2.14 times 192

^ Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of 2 new greenfield
plants in 2023 and 3 new greenfield plants in 2024.

Strategic drivers for achieving water sustainability in 2024

Positive water Reducing water

recharge usage
• Adopted 192 water bodies • Implemented 150+ process improvements
including ponds, check
• Connected all filters (ACF / PSF) for water recovery
dams, lakes and recharge
wells • Optimized drainage timing at ACF / PSF
• 40% water bodies • Bottle washer recovery in glass lines
rejuvenated in water-
stressed zones • Reuse ETP water in utilities
• Improved RO efficiency wherever RO recovery is less
than designed recovery
• Sensors / Foot operated taps for hand wash at plants

Water Recharge Ratio* Water Usage Ratio*

2.14 times 1.56^ CDP

Target 2025 Sustaining above 2.00 Target 2025 1.40x A- for Water Security
*Water recharged per liter of water consumed *Liters of water consumed per liter based on the 2024 scores
of beverage produced

Annual Report 2024 57

Rejuvenation of Water Bodies (RWB) -
a New Initiative
In association with IIT-IIT, a non-profit foundation we launched the Community-
Led Rejuvenation of Water Bodies (RWB) program in 2024 across four key
locations: Parner (Maharashtra), Jodhpur (Rajasthan), Nelamangala (Karnataka),
and Sangareddy (Telangana).
This initiative follows a community-led approach, where we support the desilting of water bodies to restore their
capacity while enabling farmers to apply the nutrient-rich silt to their fields. The outcomes have been far-reaching,
adding 0.6 Billion liters of water capture capacity, enriching 2,600+ acres of farmland while engaging 790 farmers.

Extending water security in Rajasthan Reviving hope in Maharashtra

In Kishanpur Gram Panchayat, Jodhpur, water scarcity In Parner, Jamgaon Gram Panchayat, where farmers
was a daily struggle, especially for women and young primarily grow Kharif crops like onion, green gram,
girls who walked over 1.5 km, multiple times a day and maize since access to water was limited. The
to fetch water, often carrying 10 liters per trip. In rejuvenation of Pan Mala Talao gave them a renewed
summer, water bodies dried up and they solely depend sense of hope, as they could now plan for a second
on government water tankers supply. Noticing the (Rabi) crop season and shift to other high-value crops
rejuvenation work of Kherali Nadi in a neighbouring like Sugarcane. This milestone was met with a Jal Pooja
village, local community member Mangna Ram celebration, where over 200 community members,
approached our implementation partner to revive Peepli including women, children, and senior citizens, came
Nadi of Kishanpur. Today, thanks to this intervention, together to mark this transformative moment.
the water body holds water for 11 months, significantly
reducing summer hardships and minimizing the
community’s reliance on government water tankers.

Strengthening livelihoods in Karnataka

In Basavapatna, Shivangage Gram Panchayat (Nelamangala), the rejuvenation of the local water body has
significantly improved water retention, increasing availability from six months to over a year. Water levels in wells
have risen by 200 feet, enabling a 10% increase in livestock and growing interest in fisheries. Farmers have benefited
from reduced water and fertilizer use by 50%, with 25% shifting to high-value crops. Inspired by these gains, the
community is now planning to expand storage to 50 Million liters, involve 50+ farmers, and form a women-inclusive
management committee, ensuring long-term sustainability.

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Empowering communities in Telangana

In Kalkur and Nalla Cheruvu water bodies, Machireddypalli Gram Panchayat (Sangareddy), water retention has
doubled from four to eight months, and water coverage has expanded from 25% to 50%. Water levels in wells have
risen by 50-100 feet, giving women better access to water for household needs and sparking interest in fisheries
and dairy-based livelihoods. For farmers, silt application has rejuvenated fields, enabling the cultivation of 30 acres
of previously fallow land. Building on this progress, the community is now focused on expanding water storage,
engaging more farmers, and forming an inclusive management committee with active participation from women,
ensuring long-term sustainability and collective ownership.

Beyond water: A holistic impact Scaling up: Our commitment for 2025 and
Through the RWB program, we have not only beyond
restored water bodies but also unlocked new As we move forward, we are committed to expanding
opportunities for the communities we serve. With the RWB program to four new locations – Kota,
improved water availability, farmers can now cultivate Begusarai, Gorakhpur, and Prayagraj – creating an
a second crop, while the application of nutrient- additional 2.6 Billion liters of water capture capacity,
rich silt has enhanced soil quality, leading to a 30% engaging over 2,500 farmers and enhancing over
average increase in yield. Additionally, silt application 7,000 acres of farmland.
has reduced irrigation water usage by 10% and
Further strengthening our role in water stewardship,
fertilizer dependency by 20%, making farming more
VBL has taken on the responsibility of Basin Leader
sustainable. Improved access to water has enhanced
for the Yamuna Basin under the India River Basins
sanitation and hygiene, while reducing the time and
Collective Action Program (UNCEO Water Mandate).
effort women spend fetching water, allowing them to
This step reflects our commitment to not just water
engage in other productive activities. The program
conservation but also to long-term, collaborative
has also started paving the way for water-based
action for sustainable water management.
livelihoods, such as fisheries and livestock farming,
further strengthening rural economies.

Tech-enabled national water program

To enhance the efficiency and impact of our water programs, we leverage the IIT-IIT technology platform
(GIS-based) that provides real-time visual management of VBL’s water initiatives and assets. At the water body
level, it enables accurate measurement of water capture and assessment, while a survey app allows on-demand
status updates of any water body. This data-driven approach strengthens decision-making, ensuring targeted
interventions and long-term sustainability.

Annual Report 2024 59

Water Bodies: Impact Assessment
As part of our ongoing water conservation initiatives, we have undertaken the
maintenance and rejuvenation of 192 water bodies. This report evaluates the
current state of these ponds and examines the impact of the Water Rejuvenation
Project on local communities, including its influence on their lives and livelihoods
at our manufacturing plant in Sandila.

Framework
The IRECS Framework (Inclusiveness, Relevance, Expectation, Convergence and Service Delivery) was
implemented for impact assessment.

The Process

Step 1: Survey Step 2: Questionnaire Step 3: Data collection Step 4: Extensive sampling

A primary household A detailed survey Survey CTO app, a Interactions held

survey was questionnaire was digital data collection with more than
conducted in nearby prepared based on tool with features 180 households
villages. It aimed to interactions with such as offline for ascertaining
assess the impact of the VBL team and data collection, the project’s
the intervention at secondary references. image capturing holistic impact on
socio-economic and and geo-tagging, the community.
environmental levels. was deployed for Deeper insights on
efficiency and socio-economic
data was collected and environmental
from the relevant impact were gained
stakeholders. through unstructured
interviews and FGDs.

The impact
The construction, deepening, and maintenance of ponds by VBL have had a profound socio-economic and
environmental impact. These efforts have significantly improved community well-being, provided sustained livelihood
opportunities, and contributed to agricultural resilience. Additionally, they have enhanced biodiversity and helped
replenish natural water reserves.

1. Socio-economic impact

In agrarian communities like ours, ponds play a vital role in irrigation, directly supporting farmers’ livelihoods. Beyond
agriculture, they aid in groundwater recharge and foster biodiversity, strengthening the region’s ecological balance.

Efforts towards construction and maintenance of ponds led to –

• Better access to irrigation • Better land productivity and soil • Increase in level of ground water
facilities fertility and surface water level
• Increase in crop productivity • Increase in green cover and • Increase in livestock productivity
• Enhanced crop diversification biodiversity and product yield
• Increased area under irrigation • Increase in water storage and • Increase in income and savings of
conservation the household

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Impact

Sustained management Climate change Improved quality Boost to sustainable

of natural resources mitigation of life livelihoods

Greater earnings. Enriched living

With the additional income generated, communities invested in enhancing their livelihoods, improving their quality
of life, and accessing better education and healthcare. This financial stability also fostered stronger interpersonal
relationships while increasing savings and asset-building efforts for a more secure future.

19%
Savings
19%
Investment in additional
56%
Social & family functions
10%
Better food & household
income generation activities consumption

63%
Child education
60%
Family health &
31%
Purchase of household
well-being assets

Small and marginal farmers Improved crop yield

reaped multiple benefits
5%
3%

68%
Ability to take up water-
93%
Ability to take-up crops
19%
52%

Up to 20%
intensive crop in multiple seasons
21% to 40%
41% to 60%

87%
Increase in variety of
28%
Increase in household
61% to 80%
More than 81%
crops in same season consumption of crops
21%

Key metric reflecting improved quality of life Change in cropping pattern

3% 17%
Before After
Spices 13% 16%
Experienced personal Improved inter-personal Oilseeds 54% 57%
development relations
Flowers 3% 2%

31% 95%
Fruits 4% 9%
Vegetables 37% 49%
Mental well-being Physical well-being Commercial 21% 22%
Pulses 54% 56%

52%
Material well-being
Cereals 100% 100%

Several farmers took Several households took Several farmers adopted

up the practice of up subsistence farming farming of commercial
Key takeaways cultivating cash crops in of fruits and vegetables crops such as maize and
pre-monsoon peppermint

Annual Report 2024 61

 2. Environmental impact

Ponds provide vital habitats for diverse aquatic species, supporting biodiversity and maintaining ecological balance.
Our pond rejuvenation efforts have also led to a notable increase in green cover, improved groundwater levels,
reduced soil erosion and sedimentation, and enhanced the local microclimate.

Efforts towards construction and maintenance of ponds led to –

• Increase in birds and insects • Increase in terrestrial animals • Increase in green cover
• Increase in riverine/aquatic • Increase in types of flowers • Increase in tree/plant species
animals

Impact

Improved access Decrease in efforts Increase in water Lesser time required

to water in ponds to access water from levels in well across for irrigation from
handpumps the year borewells

Improvement in groundwater level Sources showing increase in water level (in %)

5%
37% Hand pump 61

Water body 50

Farm pond 31
Nominal increase
Substantial increase Dug well 55
Minimal increase
Borewell 81

58%

Sustained water supply throughout the year reaped multiple benefits for farmers

18%
Farmers took up cropping
44%
Families stopped
66%
Households increased
in lean season migration area under irrigation

66%
Farmers enjoyed reduced
43%
Enjoyed higher cost-
65%
Experienced an increase
cost of irrigation efficiency on irrigation of up to ` 50,000 on
income

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Positive environmental impact – Key metrics (% response on survey)

38%
Improved aesthetic
17%
Improvement in
46%
Improvement in fertility
93%
Increase in groundwater
beauty micro-climatic condition and quality of soil level

9%
Water conservation
9%
Resilience to water
91%
Increase in level of
logging/floods during rain surface water sources

Key metrics (% response on survey)

A thriving ecosystem is crucial for health, food security, climate regulation, economic stability, and sustaining
life. Our pond rejuvenation initiatives aim to preserve the delicate balance of Earth’s interconnected systems,
fostering biodiversity and promoting the well-being of both the planet and its people.

39%
Increase in birds and
72%
Increase in livestock
31%
Increase in types of
91%
Increase in tree/plant
insects flowers species

15%
Increase in riverine/
50%
Increase in terrestrial
90%
Increase in green cover
aquatic animals animals

Annual Report 2024 63

Impact assessment of water ponds and biodiversity: Methodology and sample approach
Our impact assessment of water ponds and biodiversity was conducted using a structured and data-driven
approach, ensuring a comprehensive understanding of the socio-economic and environmental benefits of our
interventions.

Framework implementation Pilots and data collection

• T
 o guide our assessment, we adopted the IRECS • Before the full-scale survey, we conducted multiple
Framework (Inclusiveness, Relevance, Expectation, validation rounds and test surveys in August 2022 to
Convergence, and Service Delivery) as the refine the data collection tool.
foundation of our study.
• The final household survey commenced on
• A
 primary household survey was conducted to September 1, 2022, utilizing the Survey CTO app.
evaluate the impact of our initiatives on villages Additionally, Focus Group Discussions (FGDs) and
located near our operations. In-Depth Interviews (IDIs) were conducted with
relevant stakeholders to gather deeper insights.
Digital data collection tools
Sampling methodology
• T
 o enhance efficiency and accuracy, we developed
• The primary survey engaged with over 180
a detailed survey questionnaire in collaboration with
households, ensuring a robust and representative
our team and secondary references. dataset.
• T
 he Survey CTO app was selected as our primary • To further explore the socio-economic and
data collection tool due to its advanced features, environmental impact, we incorporated unstructured
including offline data collection, image capturing, interviews and FGDs. The study was focused on
and geo-tagging. Sandila in Hardoi District, Uttar Pradesh.

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Data analysis Reporting and recommendations

• A rigorous analytical approach was employed, • The findings were compiled into a comprehensive
combining statistical tools and qualitative analysis report, integrating survey results, FGDs, and IDIs.
methods to derive meaningful insights.
• Actionable recommendations were formulated based
• The data was meticulously examined to ensure
on the research outcomes, aligned with the IRECS
accurate interpretation and conclusive results.
Framework, to guide future interventions and enhance
the impact of our initiatives.

Promoting water resilience

At Varun Beverages, we recognize that access to clean covering all our manufacturing plants in India, reinforces
water is a fundamental human right and an essential our dedication to responsible water stewardship.
pillar of thriving biodiversity. With this understanding, In previous years, our water management practices
we embrace our responsibility to conserve, reuse, and were audited by TÜV India Pvt. Ltd., reaffirming our
recycle water across our operations. Our commitment long-standing commitment to transparency and
goes beyond regulatory compliance – we strive to ensure accountability in sustainability.
that our water management practices contribute to
Engaging with globally recognized certification
long-term environmental well-being and the prosperity
bodies underscores our focus on measurable impact,
of future generations.
ensuring that our efforts in water sustainability are
To strengthen our water conservation efforts, we have not only effective but also aligned with international
collaborated with DQS India to obtain water footprint best practices. Through these strategic initiatives, we
assurance certification, a rigorous validation process continue to play an active role in securing access to
that assesses the effectiveness of our initiatives in water clean water, reducing our environmental footprint, and
conservation and recharge. This comprehensive audit, preserving biodiversity – laying the groundwork for a
more sustainable future.

Annual Report 2024 65

Plastic Waste Management and Recycling
Effective plastic waste management is crucial for building a sustainable and
livable future for generations to come. Committed to minimizing plastic waste, we
focus on retaining its value through responsible handling and circular economy
solutions. By integrating the principles of reduce, reuse, and recycle, along with
innovative engineering and sustainable practices, we strive to extend the lifespan
of plastic and lessen its environmental impact.

Fulfilling our strategic priorities – Key enablers

Weight reduction Manufacturing Recycling of

of preforms of r-PET plastic waste

1. Key Enabler: Weight reduction Key contributions

10-20%
Reduction in weight of pre-forms translates to
reduction in material consumption and lower
energy requirements, contributing to a long- Weight reduction of pre-forms (Grams) in packs of
term impact on sustainability. 600 ml to 2.25 liters (2010-2024)

20-25%
Weight reduction of closures (Grams) in packs of
CSD/Juices/Waters (2010-2024)

Weight Reduction of Preforms (In grams)

Pack size 2010-14 2015-19 2020-24 Net reduction (%)

600 ML 25.5 22.2 22.2 12.9

750 ML 34.7 30.7 27.1 21.9

1.0 L 21.0 21.0 19.0 9.5

1.25 L 36.0 34.7 32.5 9.7

2.25 L 52.5 50.7 47.0 10.5

* in selected products

Weight Reduction of Closures (In grams)

Pack size 2010-14 2015-19 2020-24 Net reduction (%)

1.25 L 3.15 2.75 2.35 25.4

2.25 L 1.70 1.50 1.35 20.6

* in selected products

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Recycling process of plastic waste

PET bottles are The fabric is finally

The fiber stitched into
sliced into small
is converted various
flakes
into yarn products

Used PET bottles They are Fabric is made

are collected and then converted out of the
cleansed into fiber recycled yarn

2. Key enabler: Manufacturing of r-PET 3. Key enabler: Recycling of plastic waste

Our commitment to global sustainability takes We view plastic waste recycling as a
a significant leap forward with the integration fundamental environmental responsibility, which
of responsible sourcing practices into our is why we go beyond compliance by actively
packaging operations – an essential element collaborating with specialized pollution-control
of our identity as a beverage company. By organizations and government authorities on
embedding sustainability into large-scale various initiatives.
processes, we reinforce our dedication to
environmental stewardship. To further this goal,
we have set a target to incorporate 30% r-PET in
our total PET packaging by 2025 through a joint Our progress to CY 2024
venture with Indorama. Additionally, we have • Recycled 5.86 lakh MT of used PET bottles till
introduced 100% recycled PET bottles for Pepsi CY 2024 since 2019
Black in select sub-territories, marking a key
• Implementing 100% phased recycling of used
milestone in our sustainable packaging journey.
PET bottles and collection from end-users

30% r-PET
To be utilized in total PET
packaging by 2025

Products and packaging reclaimed at end-of-life products

Input material CY 2023 CY 2024
Reused Recycled Safely Reused Recycled Safely
disposed* disposed*
Plastics (in metric tons) – 150,982 (86%) – – 181,887 (88%) –
Hazardous waste - Sludge – – 1,426 – – 1,640
*Safely disposed through authorized vendors.

Category of plastic recycled

Category CY 2023 CY 2024
Resin 119,830 164,922
Shrink 10,442 13,931
Label 5,214 7,118
Closure 12,416 17,397
Tetra 3,080 3,315

Annual Report 2024 67

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Plastic Recycling Initiatives taken and other waste materials into items like T-shirts and
bags. This collaboration strengthens our commitment to
Placed dustbins Enabled direct sustainable waste management and circular economy
on direct vending collection from solutions.
machines institutions

Impact
Spread awareness Collaborated with • Awareness created for 300+ Ragpickers in CY 2024
through government IDVB Recycling • 2,100+ General public sensitized through awareness
agencies Operations Pvt. Ltd. programs
for recycling of used
• Higher waste collection through incentives for
PET bottles
ragpickers
• Increased income for ragpickers by establishing
seamless connect with buyers requiring recyclable
Recycling plastic waste: Our progress waste
In CY 2024, we successfully recycled 88% of the total • Safe, clean and plastic-free environment
PET bottles consumed, exceeding the requirements
set by the Extended Producer Responsibility (EPR) VBL & GEM: Driving sustainability together
regulations of the CPCB. During the year, 206,682 MT
PET bottles were consumed, with 181,887 MT being Together with GEM, we have undertaken the following
recycled within the same period, reinforcing our initiatives to ensure sustained waste management:
commitment to sustainable waste management
• Direct waste collection: Waste was collected from
end users through reverse vending machines,
Plastic waste recycling
strategically placed dustbins, and direct pickups
88 from institutions such as hotels, banquet halls, and
86
80 exhibitions.
70 • Plastic waste disposal awareness campaign: We
66
engaged 2,900+ participants from Nagar Nigam,
sanitation staff, ragpickers, and their families across
Uttar Pradesh, Rajasthan, and Haryana. The campaign
included activities like the Swacchta Abhiyan,
informative talks, slogan-writing contests, displays,
distribution of recycled PET products, and creative
programs to promote responsible plastic disposal.

• Ragpickers’ awareness and support program: We

2020 2021 2022 2023 2024 ensured healthier working conditions and provided
(%)
fair compensation to ragpickers, fostering sustainable
livelihoods and improving their quality of life.

*Target 2025 100% • General awareness initiatives: We launched

awareness drives on the importance of proper
*Plastic waste recycled per Kg of PET sold in finished products. plastic waste disposal, clean cities, and a greener
Plastic waste includes PET, shrink film, plastic closures, labels environment.
and laminates post consumption
• Skill development programs: Training sessions were
conducted to enhance skills, creating long-term
Best out of waste with GEM Enviro Management opportunities for waste management participants.
Our partnership with GEM Enviro Management Ltd. • Distribution of recycled merchandize: Recycled
advances our goal of achieving 100% recycling of used products such as T-shirts, masks, safety kits, and
PET bottles in a phased approach. GEM Enviro, a CPCB- food items were distributed to encourage recycling
recognized Producer Responsibility Organization (PRO) practices and showcase the value of waste.
based in Delhi, specializes in the collection and recycling • Bottle crushing machine installation: Bottle crushing
of packaging waste. The company also promotes machines were set up to streamline the recycling
recycled green products, transforming used PET bottles process and reduce plastic waste.

Annual Report 2024 69

Enhancing Energy Performance
Energy consumption impacts both our environment and sustainability goals.
Aligned with our net-zero commitment, we are increasing the share of renewable
energy in VBL’s total consumption and expanding our renewable energy portfolio.
We are continuously improving energy efficiency across our offices, warehouses,
and manufacturing facilities in India, driven by innovation and process
enhancements to reduce our environmental footprint.

Key enablers for solar / wind energy

Installing rooftop Open access Latest technology Process

for solar panels RE contracts energy-efficient improvements
machines

Progression in 2024

Generated ~79 Million Units of electricity through Planted ~128,000 tree saplings in 2024 vs
renewable sources – this is equivalent to annual power ~108,000 saplings in 2023
consumption of 14,000+* households
*As per company estimates *As per company estimates

Boosting energy efficiency through innovation and process optimization

1. Energy Savings through Frequency Drives: Use of 7. Pump Efficiency: Upgrading from low-efficiency
frequency drives in ammonia and air compressors for pumps to high-energy-efficient models.
enhanced energy efficiency.
8. Optimizing Resources: Improving the efficiency
2. Boiler Efficiency: Integration of frequency drives in of critical resources like water and energy
the ID and FD fans of the boiler system to reduce through water recovery and energy optimization
energy consumption. strategies.

3. Heat Recovery: Recovery of heat from hot 9. Automation for Resource Optimization: Using
compressed gases for water heating applications. automation and controls to optimize resource
consumption and minimize waste.
4. Syrup Transfer System: Recovery of treated hot
water from the three-stage syrup transfer Plate Heat 10. Steam Condensate Recovery: Installation of
Exchanger (PHE). Steam Operated Pump Traps (SOPT) to improve
steam condensate recovery across all units.
5. Power Savings in Beverage Filling: Beverage filling at
ambient temperatures, resulting in significant power 11. Direct Coupled High-Pressure Compressors:
savings in refrigeration. Implementation of direct-coupled high-
pressure compressors (eliminating the need for
6. Lighting Efficiency: Replacing CFL/FTL lamps with
gearboxes).
energy-efficient LED lamps.

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12. Efficient Motor Technology: Adoption of IE5 15. Heat Recovery from Compressors: Recovery of heat
permanent magnet motors for improved energy from high-pressure air compressors and ammonia
efficiency. refrigeration compressors for energy savings.

13. Adiabatic Cooling: Installation of adiabatic cooling 16. De-superheater Installation: Use of de-superheaters
towers for more efficient temperature control. to enhance thermal management.

14. Boiler Efficiency Improvement: Enhanced 17. Optimization of Preform Blow Moulding: Installation
condensate recovery through the installation of Godrej Control Air-IFC to optimize high-
of SOPT and advanced technology equipment, pressure requirements for preform blow moulding
boosting boiler efficiency. machines and Cold CIP operations, eliminating heat
requirements during their operation.

Energy-efficient beverage distribution

To enhance energy efficiency throughout our value chain, we are building a fleet of over 2,000 electric vehicles in
collaboration with our distributors. These investments are focused on enabling sustainable last-mile delivery of our
beverages, helping us reduce our carbon footprint.

Energy consumption: An overview

Renewable and Non-Renewable Sources

RENEWABLE SOURCES CY 2023 CY 2024

Electricity consumption 58 mn kWh 79 mn kWh
Fuel consumption (Briquette,
Firewood, LPG, PNG) 64 mn Kg 58 mn Kg

NON-RENEWABLE SOURCES

Electricity consumption 382 mn kWh 424 mn kWh

Fuel consumption (HSD Diesel)
4.4 mn Liters 3.4 mn Liters

Increase in Renewable Power Renewable Energy Generated

65 79

52
58

18 21

2022 2023 2024 2022 2023 2024

(in MW) (in Million kWh)

Annual Report 2024 71

Sustained Climate Action:
Reducing our Carbon Footprint
As climate change continues to impact our planet and its ecosystems, we remain
steadfast in our commitment to create a positive environmental impact through
sustained climate action. Our diverse initiatives in energy efficiency, innovation,
process optimization, technology adoption, and operational improvements are
consistently driving resource conservation and reducing our carbon footprint.

CO2 CH4 N2O HFCs PFCs SF6 NF3

SCOPE 1
DIRECT
SCOPE 3 SCOPE 3
INDIRECT INDIRECT

SCOPE 2 leased company investments

INDIRECT assets facilities

purchased employee
electricity, franchises
commuting
steam,
heating &
cooling for company
own use vehicles
business leased
travel assets

purchased fuel and transpor- waste transpor-

capital processing of use of sold end-of-life treatment
goods and energy related tation and generated in tation and
goods sold products products of sold products
services activities distribution operations distribution

UPSTREAM ACTIVITIES REPORTING COMPANY DOWNSTREAM ACTIVITIES

GHG Emissions: Snapshot

As part of our commitment to sustainability, we undertook a comprehensive carbon footprint assessment for all our
manufacturing facilities across India and International geographies, in partnership with Deutsche Quality Systems
(India) Pvt. Ltd. (DQS India). The assessment was conducted in strict adherence to the GHG Protocol and ISO 14064-
3:2019 standards.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Operational boundaries across different scopes

SCOPE 1 SCOPE 2

18.97 17.93 21.67 75.87 73.66 83.21

2024 2023 2022 2024 2023 2022

(Includes direct emissions from fuels and gases (Includes indirect emissions associated with
consumed by sources owned or controlled by VBL) purchase of electricity)

SCOPE 3 TOTAL

671.02 626.46 668.17 765.87 718.05 773.06

2024 2023 2022 2024 2023 2022
(Includes energy consumption, refrigerant emission of (Total GHG Emissions from Scope 1, 2 & 3)
visi-coolers placed with retailers and fuel consumption
from employee commuting, business travel by air, rail and
road, and upstream and downstream transportation)

Figures in grams of CO2e/liter

Intensity of GHG emissions per liter production of beverage - Key observations

0.77 KgCO e/Liter 2

0.72 KgCO e/Liter 2
0.77 KgCO e/Liter 2
2022 2023 2024

Note:
1. We have adopted the SBTi methodology for calculating GHG emissions starting from CY 2024. Consequently, the GHG emissions
for CY 2022 and CY 2023 have been restated using this approach.
2. The increase in GHG emissions is attributed to inorganic acquisitions in CY 2024.

Target

Increase in
Net Zero Renewable
Energy share:
by 2050 ~25% Renewable Energy
Mix by 2030

Annual Report 2024 73

Goal Enablers
A four-pronged approach is instrumental in achieving our 2030 goal of reducing the absolute greenhouse gas (GHG)
emission by 50% and increasing the renewable energy share in electricity by 25%.

Increasing the use Optimizing product Vending and Tree

of renewable energy transportation cooling plantation

1. Higher renewable energy share 3. Vending and Cooling

• Expanding the share of renewable energy • Since 2023, we have transitioned to energy-
through rooftop solar installations and open efficient visi-coolers using R290 refrigerant.
access Power Purchase Agreements (PPAs).
• Expediting the rollout of visi-coolers with inverter-
• Lowering emissions by enhancing energy based technology, enhanced insulation, and green
efficiency with advanced, energy-efficient refrigerants.
machinery and process improvements that
• Implementing tracking systems to monitor and
reduce electricity consumption.
optimize cooler usage.
• Implementing energy-saving best practices, such
• Exploring and introducing renewable energy-
as optimizing chillers, air compressors, high-
powered visi-coolers.
efficiency motors and drives, and LED lighting.

2. Optimized downstream transportation 4. Tree Plantation

• Optimizing network route: Enhancing service 
Planting saplings plays a crucial role in climate
efficiency by reducing miles driven, resulting in mitigation by reducing our carbon footprint.
lower fuel consumption. Beyond this, the initiative demonstrates our
ongoing commitment to biodiversity, environmental
• Optimizing existing fleet: Improving
resilience, and overall well-being.
performance through reduced static weight,
better aerodynamics, and regular maintenance.
• Using alternative fuels: Transitioning to lower-
carbon fuels and adopting electrification with
renewable energy sources. Over 2,000 EVs
have been deployed for last-mile delivery

Y-o-Y increase in sapling plantations*

~1,28,000
Saplings
~1,08,000 planted in 2024
Saplings
~80,000 planted in 2023
Saplings
~32,000 planted in 2022
Saplings
~29,000 planted in 2021
Saplings
planted in 2020

*Total plantation till date is ~377,000 negating the carbon emissions 9,400+ MT

Through these strategic actions, VBL aims to achieve a significant reduction in energy consumption while reinforcing
our commitment to sustainability and responsible resource management.

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Global recognition
Through these strategic initiatives, we have established a clear roadmap for our long-term sustainability journey.
As part of this commitment, we have set ambitious Net-Zero targets, which have been officially validated by
the Science Based Targets initiative (SBTi). Our goal is to achieve net-zero greenhouse gas emissions across our
entire value chain by 2050.

Additionally, we are proud to have been recognized for our efforts in environmental stewardship, securing
a position on the prestigious CDP A List based on the 2024 CDP scores for Climate and Water Security.
This acknowledgment underscores our dedication to sustainable practices and our ongoing efforts to drive
meaningful change.

Annual Report 2024 75

VBL’s Commitment to Sustainability
and Carbon Reduction
Towards Carbon Reduction our broader sustainability commitments and our role
VBL is dedicated to minimizing its environmental in combating climate change. By integrating strategic
impact through a comprehensive environmental action initiatives and sustainable practices, we aim to foster a
plan that addresses both direct and indirect emissions. greener and more resilient future.
Recognizing the need to contribute to a low-carbon
economy, we are actively implementing measures to Our commitment to reducing carbon emissions
reduce our carbon footprint. These efforts align with underscores our dedication to environmental
stewardship and responsible corporate operations.

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Reduction of Energy Consumption (Scope 1 Reduction of Energy Consumption (Scope 3:

and Scope 2: Emission Reduction Strategy) Emission Reduction Strategy)
Understanding the importance of reducing energy Optimized Downstream Transportation:
consumption at the source, we are actively implementing Optimizing Network Route:
various energy efficiency measures, including:
Enhancing service efficiency by reducing miles driven,
Energy Efficiency in Buildings and Plant-level leading to lower fuel consumption.
Projects:
Optimizing Existing Fleet:
Enhancing energy efficiency across our infrastructure to
optimize consumption. Improving performance through reduced static weight,
better aerodynamics, and regular maintenance.
Detailed Energy Audits:
Conducting comprehensive energy audits to identify Using Alternative Fuels: Transitioning to lower-carbon
high-consumption areas and implement targeted fuels and adopting electrification using renewable
improvements. energy sources.

Electrical Safety Audits:

Assessing electrical systems to detect and mitigate
energy leakages, ensuring both safety and efficiency.
Adoption of Green Industry Practices:
Integrating sustainable and eco-friendly processes into

2,100+
our operations to curb emissions related to business
growth.
Knowledge Exchange, Training, and Awareness EV’s deployed for last-mile delivery.
Campaigns:
Promoting a culture of energy efficiency through Vending and Cooling:
employee training and awareness initiatives.
Since 2023, we have switched to efficient visi-coolers
Replacement of Outdated Equipment: using R290 refrigerant.
Upgrading old equipment with modern, energy-efficient Accelerating the deployment of energy-efficient visi-
technologies to enhance operational efficiency and coolers with inverter-based technology, better insulation,
reduce energy use. and green refrigerants.
Use of Renewable Energy (Scope 2: Emission Establishing tracking mechanisms to monitor and
Reduction Strategy) optimize cooler utilization.
To mitigate Scope 2 emissions, we are adopting a
Exploring and implementing renewable energy-based
combination of strategies that enhance the use of low-
visi-coolers.
carbon and non-carbon energy sources, including:
Installation of Renewable Energy Sources: We are Tree Plantation:
investing in solar panel installations and other renewable Planting saplings as a key climate mitigation strategy to
energy solutions across our sites to generate clean and reduce the carbon footprint.
sustainable energy.
Contributing to biodiversity, environmental resilience,
Power Purchase Agreements (PPAs) with Renewable and long-term sustainability.
Energy Providers: We are securing PPAs with renewable
energy suppliers through open-access arrangements,
ensuring a significant portion of our energy consumption
is derived from sustainable sources.

3,77,000
saplings planted since 2020

Through these strategic actions, VBL aims to achieve

a significant reduction in energy consumption while
reinforcing our commitment to sustainability and
responsible resource management.

Annual Report 2024 77

Sourcing with Care
We prioritize responsible sourcing to achieve our sustainability goals. VBL’s raw
materials are sourced from suppliers who follow strict sustainability practices,
reducing our ecological footprint and supporting local communities. Our
suppliers are committed to water and energy efficiency, waste management,
and transitioning to net-zero, driving long-term growth and positive impact.

Environmental impact assessment

Our suppliers, aligned with the Supplier Code of
We closely track the progress
Conduct, are continuously innovating to source high-
of our responsible sourcing quality raw materials in environmentally responsible
goals with key raw material ways. They prioritize sustainability by adhering to strict
guidelines, ensuring compliance with waste disposal
and packaging suppliers, who
and pollution control regulations. Key initiatives include
account for over 90% of our enhancing energy efficiency, transitioning to renewable
overall purchases. This enables energy through solar and wind power, and replacing
conventional fuels with eco-friendly briquettes. In
us to align their practices with
addition, we promote ongoing plantation efforts for a
our sustainability objectives greener future and fulfill water requirements through
moving forward. third-party suppliers or, where available, groundwater.

Supplier Code of Conduct Business integrity and

anti-corruption
Ethical and responsible sourcing of raw materials is
a core aspect of our supply chain management. To
support this, we have implemented PepsiCo’s Global
Supplier Code of Conduct, which applies rigorously
to all suppliers, agents, consultants, vendors, and Supplier Code of
contractors as a condition for doing business with Environmental Conduct sets the Labor
PepsiCo and its affiliates. management ground rules in practices
areas of:

Health and
safety

Value chain partners assessed for environmental and social impact

90%+
Raw material
90%+
Capex
suppliers suppliers

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Key initiatives on responsible sourcing by suppliers

Electricity generation Installation of

from renewable energy-efficient
energy sources like types of machinery
solar power and in production lines
wind power

Installation of water Implementing Use of treated water

treatment plant Pressurized Jet for gardening and
Sprays for cleaning sanitation purposes
purposes instead of
direct water usage

Adoption of ponds Tree plantation

in nearby villages drives to maintain
and recharging green belts around
groundwater manufacturing units

Rainwater harvesting Using bagasse cane Proper recycling of

to improve residue as biofuel all kinds of waste
groundwater level for generating like plastic waste,
steam through e-waste, hazardous
boilers waste

Annual Report 2024 79

Supplier Material Supplied Initiatives Taken

PepsiCo India Concentrate PepsiCo has taken various initiatives on environment, social and
sustainable practices including:
• Reduction in energy consumption
• Reduction in water usage
• Developing rainwater harvesting pits and ponds
• Manure machine for recycling of food waste

Reliance Industries PET Resin As a part of the Net Zero and New Energy plans, Reliance has
Limited committed to establishing 20 GW of solar energy generation
capacity by 2025, which will be entirely consumed for our captive
needs of round-the-clock (RTC) power and intermittent energy
for Green Hydrogen.

DCM Shriram Sugar • Sets rotary dryer for bagasse drying, utilizing waste flue gas
from boilers. Fresh bagasse’s moisture content of 48% to 50%
is reduced to 12% with more efficient utilization of bagasse
biofuel. This is a unique, one-of-its-kind initiative to reduce fuel
consumption.
• Owns Bio-Lab which produces bio-fungicides and bio-
pesticides instead of chemical fungicides and pesticides used
by farmers for cane crop.
• Awarded Best Energy Efficient Plant in sugar sector by
Bureau of Energy Efficiency (BEE), for being the lowest power
consumption per ton cane.

Triveni Engineering Sugar Diverts B-category heavy molasses to distillery for ethanol
blending in petroleum products.

Tetra Pak Packaging material Procures 100% paper board from Forest Stewardship Council
certified supplier and 100% Aluminum foil from Aluminum
Stewardship Initiative member supplier.

Tasa Foods Fruit pulp Uses dried mango seeds as biofuel and decomposing fruit waste
into manure provided to farmers.

SIDEL Blowing Manufacturing lines • Committed to ISO 14001 environmental certification to

Services S.A.S. reduce impact on the environment and promote sustainability
development. It is committed to recycling PET (notably with
the development of PET recycling line: rPET).
• Uses 100% Green energy for all processes. It has taken
measures to make energy-efficient equipment to help in
reduction of energy consumption. For example, Blowers
with 45% energy saving, AQflex conveyors with 70% saving,
Shrinkwrapper with 52% saving.

HUSKY Injection Packaging Lines • Supports use of bio-resins in hot runner applications.
Molding Systems SA Optimized hot runner systems to reliably run bio-resins and
accommodate challenges arising in production.
• Launched UltraMelt platform to lower the risk of melt
degradation, oxidation and discoloration; a highly effective
solution to meet processing needs of bio-resins consistently.

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Social impact assessment • Provision of Occupational Health and Safety (OHAS)

Management System to ISO 45001:2018 certified
Our suppliers adhere to stringent policies and take
suppliers (as specified)
firm measures in line with human rights to facilitate a
safe, non-discriminatory, and employee-friendly work • Support and guidance on prevention of work-related
environment. Few measures adopted to ensure these injury and ill health
include:
A few other initiatives taken by suppliers include regular
• Rigorous compliance to policies related to Freedom
health check-up of employees, providing easy access
of Association and Rights to Collective Bargaining,
to dispensary and mobile vans, safety drills to check
Child and Forced Labor, Gender Equality and Non-
discrimination emergency preparedness in case of mishappening and a
special taskforce for employee grievance resolution.
• Provision of clean, hygienic and friendly work
environment
• Maintenance of Occupational Health & Safety
Standards
• Well-defined SOP’s and policies with easy access to
employees
• Limiting the maximum number of working hours as
per the Government norms of 48 hours per week
(with overtime reimbursement, if required, under
special circumstances)
• Quarterly/half-yearly/regular trainings for
employees on company policies such as POSH,
OHAS and Industrial Hygiene

Annual Report 2024 81

SOCIAL
INITIATIVES
Employees

Future-ready Workforce
Shaping our Future TM

At Varun Beverages, our people are improving with every initiative we have
undertaken. We prioritized building a healthy, empowered, and future-ready
workforce through welfare programs, skill development, career growth
opportunities, and an inclusive culture. By investing in their well-being and
growth, we drive sustainable success for our organization and industry.

Integrating ESG with employee performance critical role employees play in advancing ESG objectives,
At VBL, ESG principles are not just values but are the Board has approved a policy to establish an ESG-
integral to our operations and decision-making. To align linked incentive framework. This policy applies to
our ESG goals with employee performance, we have all employees, including KMPs and Board members,
implemented a strategic framework that incorporates underscoring our focus on integrating sustainability into
sustainability into business practices. Recognizing the every aspect of our organization.

Identification of
ESG-related key
issues

All steps are

Formulation
aligned with global
of issue-wise
benchmarks and
improvement
PepsiCo’s best
targets
practices

ESG-linked
incentive
framework -
Performance-
based decision How it According due
on incentives, works? weightage to
achievement of
increments and
respective targets
growth

Rolling out issue-

Periodic review of based targets in an
achievements vis-à- integrated manner
vis ESG targets for ESG-related
aspects

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Nurturing a culture of growth and positivity Turnover rate (%)

Our inclusive culture prioritizes growth, learning, and
CY 2022 CY 2023 CY 2024
well-being, fostering an environment that inspires trust,
respect, and transparency. Open communication enables Permanent employees
constructive feedback, while our holistic approach to
employee empowerment attracts top talent, boosts Male 20% 19% 20%
satisfaction, and drives unparalleled success. Female 18% 15% 20%

100% Others

Permanent workers
Nil Nil 9%

Return to work and retention rate for permanent

employees and workers that took maternity leaves Male 5% 4% 8%

Female 3% Nil 3%
Continuous training and development
Others Nil Nil Nil
We invest in building a learning culture through robust
training programs. By upskilling and reskilling our
employees, we help them achieve career growth while Inclusion and diversity
positioning ourselves for accelerated business success.
Our commitment to diversity and inclusion is anchored
by ESG-linked targets, enhancing innovation and
Career development and training metrics creativity. We focus on hiring across genders and
differently-abled individuals, benefiting from diverse
CY 2023 CY 2024 perspectives and enriched experiences.
Employees covered for Career 100% 100%
development Targeting
(in manhours)
CY 2023 CY 2024
10%
Diversity mix by 2025
Health & Safety 217,102 238,813
Diversity CY 2023 CY 2024
Skill Upgradation 81,413 89,555
Permanent 5.4% 6.2%
Others (includes training related 244,240 268,664
to Environment and Governance) Other than permanent 7.3% 7.7%
Total 542,755 597,032 Overall 6.6% 7.2%

Induction of Graduate Engineer Trainees

Annual Report 2024 85

Performance Evaluation
Category CY 2024 CY 2023
(Current Financial Year) (Previous Financial Year)

Total (A) No. (B) % (B/A) Total (A) No. (B) % (B/A)
Employees
Male 6,838 6,838 100% 6,260 6,260 100%
Female 627 627 100% 488 488 100%
Others 22 22 100% 14 14 100%
Total 7,487 7,487 100% 6,762 6,762 100%
Workers
Male 3,521 3,521 100% 3,175 3,175 100%
Female 33 33 100% 36 36 100%
Total 3,554 3,554 100% 3,211 3,211 100%

Category CY 2024 CY 2023

(Current Financial Year) (Previous Financial Year)

Total Equal to More than Total Equal to More than

(A) minimum wages minimum wages (A) minimum wages minimum wages

No. (B) % (B/A) No. (C) % (C/A) No. (B) % (B/A) No. (C) % (C/A)
Employees
Permanent
Male 6,838 0 0.00% 6,838 100.00% 6,260 0 0.00% 6,260 100.00%
Female 627 0 0.00% 627 100.00% 488 0 0.00% 488 100.00%
Other 22 0 0.00% 22 100.00% 14 0 0.00% 14 100.00%
Other than Permanent
Male 7,091 0 0.00% 7,091 100.00% 6,867 0 0.00% 6,867 100.00%
Female 250 0 0.00% 250 100.00% 146 0 0.00% 146 100.00%
Workers
Permanent
Male 3,521 0 0.00% 3,521 100.00% 3,175 0 0.00% 3,175 100.00%
Female 33 0 0.00% 33 100.00% 36 0 0.00% 36 100.00%
Other than Permanent
Male 10,249 5,670 55.32% 4,579 44.68% 9,006 4,956 55.03% 4,050 44.97%
Female 883 485 54.93% 385 45.07% 826 455 55.08% 371 44.92%
Other 26 0 0.00% 26 100.00% 0 0 0.00% 0 0.00%

(` in Million)
Male Female Others
Number Median Number Median Number Median
remuneration/ remuneration/ remuneration/
salary/wages of salary/wages salary/wages
respective category of respective of respective
category category
Board of Directors 3 67.18 - - 0 0
(BOD)
Key Managerial 2 11.79 - - 0 0
Personnel
Employees other 6,833 0.47 627 0.40 22 0.36
than BOD and KMP
Workers 3,521 0.33 33 0.26 0 0
Note: Since Independent Directors received no remuneration, except sitting fee for attending Board/Committee meetings, the
required details are not applicable. Further, for the purpose of calculation of median remuneration of KMP, remuneration paid to
Mr. Lalit Malik has not been considered due to cessation as KMP with effect from May 13, 2024.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Employee wellness experience and wellness programs aimed at fostering a healthy

and supportive environment. Additionally, we ensure
At VBL, we focus on building a workplace that prioritizes compliance with safety regulations by covering all
employee well-being and growth. We have introduced workers under the Factories and Food Safety Acts.
full-body medical check-ups and doctor consultations to These initiatives reflect our commitment to the health,
support physical health, along with the Visit Health App, safety, and overall experience of our employees, enabling
making healthcare easily accessible to all employees. them to perform and grow effectively.
To address mental well-being, we provide coaching

Key enablers

1) Comprehensive medical check-ups and 3) Mental health and wellness programs

consultations
• Acknowledged the significance of mental
• Introduced full-body medical check-ups health and introduced coaching programs
to promote preventive healthcare among for emotional well-being.
employees.
• Designed initiatives to address mental health
• Enabled regular access to doctor concerns, fostering a holistic approach to
consultations, ensuring support for health employee wellness.
concerns and overall well-being.
4) Compliance with Factories and Food Safety Acts
2) Visit health app for seamless healthcare access
• Ensured all workers are covered under the
• Launched the Visit Health App, providing Factories and Food Safety Acts to uphold
employees with a convenient platform to regulatory standards.
book medical check-ups and consultations.
• Reinforced our commitment to workplace
• Leveraged technology to enhance healthcare safety and the well-being of the workforce.
accessibility and prioritize employee
wellness.

VBL’s first all female distribution centre

Annual Report 2024 87

Employees
Benefits gained Trade union for non-permanent employees:
• Non-permanent employees, including contractual
Provident fund coverage: workers, have the right to form trade unions.
• All employees are entitled to Provident Fund benefits • This fosters a fair and inclusive workplace by
under the EPF & Miscellaneous Provisions Act. providing a collective voice for non-permanent staff.
• Compliance with statutory regulations ensures
employees receive mandated benefits. Short-term employee benefits:
• Benefits payable within 12 months of service,
Employee State Insurance (ESI): including salaries, wages, and bonuses, are classified
• Employees are covered under the Employee State as short-term benefits.
Insurance Act, providing additional social security • These are recorded in the Consolidated Statement
benefits. of Profit and Loss during the period the service is
• We adhere to all statutory requirements to support rendered.
the well-being of our workforce.
Company contributions to retirement plans:
Defined benefit gratuity plan: • Contributions to defined benefit and retirement plans
• A defined benefit gratuity plan is governed by the may reach up to 12% of an employee's annual basic
Payment of Gratuity Act, 1972. salary, depending on the plan.
• A Gratuity Trust has been established, with • Certain plans also allow employees to contribute a
contributions and an insurance policy in place to percentage of their annual basic salary.
meet gratuity obligations.
Health and accidental insurance:
Accumulated leave: • All employees and workers are provided with health
• Accumulated leave expected to be used within and accidental insurance coverage.
12 months is treated as a short-term benefit.
• This comprehensive coverage highlights our
• Leave policies are aligned with standards to support commitment to their well-being and financial
employee efficiency and well-being. security.
Insurance for gratuity payments:
•

•
An insurance policy is secured to cover gratuity
payments for employees.
Annual funding valuations by the insurance provider
100%
Of female employees are covered
ensure any deficits are addressed. under the maternity scheme.

Category CY 2024 CY 2023

(Current Financial Year) (Previous Financial Year)
Total No. of employees/ % Total No. of employees/ %
employees/ workers in (B/A) employees/ workers in (B/A)
workers in respective workers in respective
respective category, who respective category, who
category are part of category are part of
(A) Association(s) or (A) Association(s) or
Union (B) Union (B)
Total Permanent Employees
Male 6,838 0 0.00% 6,260 0 0.00%
Female 627 0 0.00% 488 0 0.00%
Others 22 0 0.00% 14 0 0.00%
7,487 0 0.00% 6,762 0 0.00%
Total Permanent Workers
Male 3,521 1,514 43.00% 3,175 1,586 49.95%
Female 33 14 42.42% 36 14 38.89%
Others 0 0 0.00% 0 0 0.00%
3,554 1,528 42.99% 3,211 1,600 49.95
Total 11,041 1,528 13.84% 9,973 1,600 16.04

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Nurturing leaders of tomorrow

Varun Beverages competency framework: Key aspects

Category CY 2024 CY 2023 Remarks

(Current Financial Year) (Previous Financial Year)

Total On Health & On Skill Total On Health & On Skill

(A) Safety Measures Upgradation (A) Safety Measures Upgradation

Number % Number % Number % Number %

(B) (B/A) (C) (C/A) (B) (B/A) (C) (C/A)
Employees
Male 6,838 6,066 88.71% 5,498 80.40% 6,260 2,886 46.10% 5,607 89.57% -
Female 627 627 100.00% 627 100.00% 488 221 45.29% 330 67.62% -
Others 22 22 100.00% 22 100.00% 14 4 28.57% 1 7.14% -
Total 7,487 6,715 89.69% 6,147 82.10% 6,762 3,111 46.01% 5,938 87.81% -
Workers
Male 3,521 3,370 95.71% 3,100 88.04% 3,175 3,146 99.09% 2,856 89.95% -
Female 33 33 100.00% 33 100.00% 36 34 94.44% 36 100.00% -
3,554 3,403 95.75% 3,133 88.15% 3,211 3,180 99.03% 2,892 90.07% -
Total 11,041 10,118 91.64% 9,280 84.05% 9,973 6,291 63.08% 8,830 88.54% -

Awareness and capacity building

Our workforce is central to our success, and we employees for both current roles and future challenges.
prioritize continuous learning through upskilling and Employees have shown a remarkable 100% participation
reskilling initiatives. By fostering a culture of ongoing rate in critical policy training sessions covering POSH,
development, we enhance performance, adaptability, Code of Conduct, Insider Trading Regulations, Whistle
and overall business growth. blower Policies, and the Foreign Corrupt Practices
Act (FCPA). These sessions follow a ‘train the trainer’
Our comprehensive training programs focus on model, ensuring uniform knowledge dissemination
technical, behavioral, and functional skills, preparing across our operations.

Annual Report 2024 89

Employees

Total number of employees that participated in training Average hours of training per employee
category-wise
CY 2024 11,041
CY 2023
CY 2022
9,973
8,636 53 54
Average female/ Average male
others training training hours
Average hours of training hours

CY 2024 54
CY 2023 54
CY 2022 57

Emphasis on talent management Hiring from transgender (TG) community

Placing the right people with the right skills in the We are committed to building a diverse and inclusive
right roles is key to achieving our business goals. Our workplace by creating meaningful employment
talent management strategy ensures this by: opportunities for the transgender community. Our
journey began in 2023 with a pilot plant in Mahul,
• Assessing employees' strengths and performance
Mumbai, hiring eight transgender employees.
• Identifying their developmental needs Encouraged by its success, we expanded to Greater
Noida and Nelamangala, growing our team to 20+
• Enhancing their potential through targeted
members.
training
• Mapping career opportunities for future growth To foster inclusivity, we carefully selected plant
locations, built gender-neutral facilities, and
Performance management conducted sensitization workshops for all employees.
Our robust performance management framework Beyond employment, we provide onboarding support
provides a structured approach to evaluating and and sponsor gender-affirming surgeries. As we move
enhancing employee performance. It enables teams forward, we aim to extend these efforts across more
to adapt swiftly to evolving consumer and business locations and functions in 2025.
needs while identifying growth opportunities. This
framework helps leaders set goal-based priorities
and gain performance insights, facilitating regular
feedback sessions for continuous improvement.

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DEI Commitments:

Equal Respect for Merit-based

opportunities differences employment

We are committed to We foster a culture that Our employment decisions

promoting equal opportunities respects and values the rights are rooted in merit, focusing
for all employees, ensuring fair and unique contributions of on an individual’s skills,
treatment and actively working each individual, recognizing qualifications, and capabilities,
to eliminate discrimination and appreciating the diversity rather than irrelevant factors.
and barriers to career they bring to the organization.
advancement.

Leadership Performance-based Zero

accountability opportunities tolerance

Senior leadership and Development and promotion We adopt a zero-tolerance

managers at all levels are opportunities are based approach to violations of our
accountable for upholding on individual performance, PoSH and Diversity & Inclusion
and implementing these capability, and potential, policies, addressing any
DEI policies, ensuring their aligning with business needs misconduct with the utmost
seamless integration into daily and objectives. seriousness and subjecting it
operations. to disciplinary action when
necessary.

Workforce ratio for CY 2024

• The basic salary and remuneration ratio of
women to men stands at 0.85:1 for employees.
• For workers, the ratio is 0.79:1.

These figures underscore our commitment to

gender pay equity and reflect our ongoing efforts
to foster an inclusive and fair workplace. We
remain dedicated to building a diverse culture
where every individual can thrive and contribute
to our collective success.

Annual Report 2024 91

Employees
Employees and workers (including differently abled):
S. No. Particulars Total Male Female Others
(A) No. (B) % (B/A) No. (C) % (C/A) No. (D) % (D/A)
Employees
1 Permanent (E) 7,487 6,838 91.33% 627 8.37% 22 0.29%
2 Other than Permanent (F) 7,341 7,091 96.59% 250 3.41% 0 0.00%
3 Total Employees (E+F) 14,828 13,929 93.94% 877 5.91% 22 0.15%
Workers
4 Permanent (G) 3,554 3,521 99.07% 33 0.93% 0 0.00%
5 Other than Permanent (H) 11,158 10,249 91.85% 883 7.91% 26 0.23%
6 Total workers (G+H) 14,712 13,770 93.60% 916 6.23% 26 0.18%

Differently abled employees and workers:

S. No. Particulars Total Male Female Others
(A) No. (B) % (B/A) No. (C) % (C/A) No. (D) % (D/A)
Differently Abled Employees
1 Permanent (E) 2 2 100.00% 0 0.00% 0 0.00%
2 Other than Permanent (F) 27 26 96.30% 1 3.70% 0 0.00%
3 Total Differently Abled 29 28 96.55% 1 3.45% 0 0.00%
Employees (E+F)
Differently Abled Workers
4 Permanent (G) 0 0 0.00% 0% 0.00% 0 0.00%
5 Other than Permanent (H) 267 247 92.51% 20 7.49% 0 0.00%
6 Total Differently abled Workers 267 247 92.51% 20 7.49% 0 0.00%
(G+H)

Employees and workers who have been provided training on human rights issues and policies of the entity
Category CY 2024 CY 2023
(Current Financial Year) (Previous Financial Year)
Total No. of Employees/ % Total No. of Employees/ %
(A) Workers Covered (B/A) (A) Workers Covered (B/A)
(B) (B)
Employees
Permanent 7,487 7,487 100% 6,762 3,111 46%
Other than Permanent 7,341 5,139 70% 7,013 3,013 43%
Total Employees 14,828 12,626 85% 13,775 6,124 44%
Workers
Permanent 3,554 3,554 100% 3,211 3,180 99%
Other than Permanent 11,158 7,253 65% 9,832 5,113 52%
Total Workers 14,712 10,807 73% 13,043 8,293 64%

Nurturing internal talent Assessing development needs

We prioritize the growth and development of our Through structured evaluations, we identify key
internal talent by offering opportunities for career areas for growth, aligning individual aspirations with
advancement. Through structured talent management organizational goals.
programs, we identify strengths, assess development Actionable growth plans
needs, and create pathways for future growth, ensuring We create dynamic, personalized action plans to foster
a dynamic and skilled workforce. continuous employee development and career progression.
Our talent management programs
New hires in CY 2024
Understanding our people
We analyze employees’ strengths, skills, and potential to Particulars Male Female Others Total
gain deeper workforce insights, enabling informed talent Age <30 years 1,346 205 8 1,559
development strategies. 30-50 years 1,248 67 3 1,318
>50 years 13 1 - 14
Total 2,607 273 11 2,891

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Employee Health and Safety

At Varun Beverages, creating a safe Key Safety Highlights
and healthy workplace is a top priority.
Our strong governance framework, 36 Zero
Fatalities
including Steering Committees and Plants employees/
contractors participated
Corporate Sub-Committees, ensures in the Safety Perception
the effective implementation of safety Survey.
initiatives.

Every plant has a

Primary Healthcare
Center

Periodic inspections
Subjected to all
conducted by audit
industry-related
organization to
audits and surveys
meet international
Key to ensure 100%
standards
initiatives compliance

Processes to Access to non-

identify work- occupational
related hazards and health and medical
assess risks healthcare services

Safety: Our top priority

We aim for zero workplace injuries
and fatalities, ensuring everyone
returns home safely every day.

Our approach includes:

• Building a culture of safety
leadership.
• Implementing comprehensive
safety strategies.

• Conducting continuous training

programs.

Annual Report 2024 93

Employees

How do we do it

Conducting Formation Periodic check

frequent Safety of Safety of equipment
Awareness Committee
programs

Specialized Safety audit

training program by Internal/
for Operations/ Government
Technicians officials

Work at height and general Safety interaction system Major achievements in safety
safety rules The Safety Management System • Conducted Leadership Workshop
The safety guidelines for working standard was successfully on Leading Safety Efforts for
at heights (1.8 meters or more) implemented with comprehensive Senior Leaders
are designed to mitigate potential training for nominated members
• Set up governance structure for
hazards. These include reporting from each plant. It establishes a
Steering Committee, Corporate
safety hazards, injuries, incidents, process for leadership engagement
Sub-Committees, and Plant APEX
emergency preparedness, handling with employees and contractors
Committees
hazardous materials and chemicals, on safety matters. Additionally, the
following special procedures, and schedule and frequency for safety • Ensured control measures
maintaining good housekeeping. discussions on the shop floor, along by implementing Incident
The system also addresses hazard with tracking and trend analysis of Management and Safety
identification, risk assessment, observations, were finalized. Interaction Systems
planning and preparation, use of
• Driving Work at Height and
protective equipment, training Employee passport
General Safety Rules for basic
and certification, inspections, and contractor safety
safety improvements at all plants
and compliance with specific management
requirements. The Employee Passport and • Implemented Employee Passport
Contractor Safety Management System to track and improve
Incident management system system helps track and ensure training needs for contractors and
To ensure an injury-free workplace, the completion of safety training employees
nominated members from each for contractors. This structured • Enabled structured approach for
plant undergo training in the approach aims to reduce risks reducing risks associated with
Incident Management System. associated with contractor safety. Contractor Safety Management
This system outlines injury types, It covers processes for contractor
a communication matrix for selection, contract preparation and • A Safety Perception Survey was
information sharing, incident award, orientation and training, work carried out among employees
investigation procedures, roles, and coordination, auditing, and contract and contractors, revealing that 24
timelines for resolving incidents. evaluation. out of 29 perceptions have shown
improvement.

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For Sub-Committees For APEX Committees

• Approved charters and deliverables for each • Finalized charters for all plant committees
sub-committee • Conducted plant/cluster leadership
• Action plan made for functioning of all workshops for 150+ employees in 6 plants
sub-committees • Ensured functioning of all committees with
• Finalized standards for Incident action items
Management, Safety Interactions, General
Safety Rules, Work at Height, Document
Control, Contractor Safety Management
• Completed training on Incident
Management
• Completed 2-day training on Safety
Interaction

Safety Incident/Number Category CY 2024 CY 2023

(Current Financial Year) (Previous Financial Year)

Lost Time Injury Frequency Rate (LTIFR) Employees 0.12 0

(per one Million person hours worked) Workers 0.096 0.003

Employees 2 1
Total Recordable work-related injuries
Workers 3 1

Employees 0 0
No. of fatalities
Workers 0 2

High consequence work-related injury or Employees 0 0

ill health (excluding fatalities) Workers 0 0

Annual Report 2024 95

Employees

We have implemented a structured approach to minimize risks associated with contractor safety and ensure a
safe working environment, aligned with our ESG goals. This approach includes the careful selection of contractors,
preparation of contracts that outline safety performance expectations, awarding contracts after thorough due
diligence, providing orientation and training for contractor employees, overseeing contract work, and conducting
evaluations to ensure compliance and safety standards are met.

Contractor Selection Orientation and Training

Contractor selection is a process of Before contracted work begins, it is
screening the available and known important for VBL to provide a health
source through a process of evaluation and safety orientation to familiarize
of his technical, financial, quality contractor employees with essential
background and equal safety records. health and safety information and to
communicate hazards posed by VBL
operations.

Contract Preparation Work Coordination and Auditing

The tender bid package should The contract administrator
be developed to include safety shall establish a process so that
performance expectations and contractor work is administered
conditions for execution of the work. to meet the contract’s mandatory
health and safety requirements.

Contract Award Contract Evaluation

The contract administrator shall confirm Plant shall establish a process for
that the contractor’s proposal meets the consistently evaluating contractor
bid package’s mandatory requirements. safety performance. The process
Confirmation shall include collection should identify which contracted
and review of the contractor’s health work activities should be evaluated
and safety documents. and at what frequency.

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Augmenting Product Safety and Quality

Refreshing billions of people worldwide comes with the great responsibility of
ensuring top-notch product quality that is safe to consume. We strive to achieve
this through comprehensive management systems and policies marked to highest
global standards.

Key enablers

Responsible Quality Stringent Sustainable

sourcing and assurance labelling marketing &
manufacturing standards sales

Responsible sourcing and manufacturing covers raw material sourcing, manufacturing process,
Ensuring quality during sourcing of raw materials and storage, shelf life, etc.
manufacturing of beverages is fundamental to our • Daily incorporation of food safety principles into
sustainability goals. Responsible sourcing through manufacturing processes across all manufacturing
PepsiCo approved suppliers, who successfully undergo sites
comprehensive screening and certification by PepsiCo, is
a key enabler in achieving this. • Regular Food Safety Audits by third party
• Regular internal Food Safety Audits
Constant efforts are also made towards enhancing
VBL’s food safety capability and improving processes Product labelling
and quality system across the supply chain. Risk-based
Labelling is an integral part of fostering consumer
controls systems also play a significant role in mitigating
awareness, building trust and loyalty amongst them,
potential hazards and risks in the manufacturing
and ensuring regulatory compliance for the Company.
and support processes and complying with our food
We strive to continually improve our labelling standards
management standards.
and provide clear and accurate information about the
product. We also aim to provide essential information
A promise for superior quality about the nutritional value of our product and look
Our promise for food safety and quality is fulfilled forward for more opportunities to educate our
through extensive measures taken by internal and customers, in collaboration with industry, governments,
external quality teams across all manufacturing and and other stakeholders.
logistics centers. These include:
• Maintenance of own food safety manufacturing PepsiCo’s Global Labelling Policy, FSSAI guidelines,
system at every site. This must conform to PepsiCo’s and other applicable laws and regulations for labelling
global standards and regulatory requirements in India within India are duly followed for all products at Varun
Beverages.
• Strict adherence to PepsiCo’s Global Food Safety
Policy within all VBL’s production facilities. The policy

Annual Report 2024 97

VBL’s labelling policy

Our products provide on the Our products include We provide the percentage
side or back of our packaging information on energy of the official Guideline Daily
nutrition information on the (as calories, kilocalories or Amounts, Daily Values or
amount of energy (as calories, kilojoules) per 100g/ml or equivalents for energy, total fat,
kilocalories or kilojoules), per serving. saturated fat, sodium/salt and
protein, carbohydrate, total total sugars on either the front,
sugars, total fat, saturated fat side or back of pack in countries
and sodium per 100g/ml or per where such values are available.
serving. Additionally, we will
include nutrition information for
nutrients for which a health or
nutrition claim is made.

Sustainable marketing and • Adhere to PepsiCo’s Policy on • Conduct employee trainings to

sales Responsible Advertising and ensure compliance with these
Our commitment extends beyond Marketing to Children laws and policies
manufacturing tasty and refreshing • Adhere to PepsiCo’s Global Policy
beverages; it encompasses our As per the franchise agreement
on the Sale of Beverages to
responsibility to spread awareness with PepsiCo, above the line (ATL)
Schools
about our products and promote marketing activities are PepsiCo’s
responsible consumption, helping • Adhere to all relevant laws and responsibility.
our consumers to make healthy and regulations in India
informed choices. To ensure this, we:

No products, regardless of Children are special and any

its nutritional profile, will be product needs to be advertised
advertised by PepsiCo to children to them with care. Considering
under the age of 6 them as special audience, PepsiCo
takes special care in developing
advertisements for children under
13 years of age

PepsiCo’s
advertising
and marketing
strategy

With the objective to encourage

Additionally, only plain water, consumption of healthy food
fruit or vegetable juice, and and beverage amongst global
dairy-based beverages may be audience under 13, PepsiCo
marketed, consistent with the exclusively advertises products
International Council of Beverages that meet the International Food
Associations (ICBA) Marketing to and Beverage Alliance (IFBA)
Children Guidelines Common Nutrition Criteria

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Consumer Health and Nutrition

Today’s consumers seek nutrient-rich food and beverages, and Varun Beverages
is well-equipped to meet their evolving preferences. With a well-balanced
portfolio, we offer products that cater to both taste and nutrition, supporting
global consumers in their refreshment and wellness goals. Our commitment to
transparent labeling and clear nutritional information strengthens trust among
billions across 14 countries.

Key enablers Evolving to meet consumer

expectations
Assorted nutrient-rich Nutrition information
portfolio mix Tastes and nutritional needs of
Providing clear nutrient
consumers are ever changing. As
A beverage for every mood, information about our products
a global beverage company, we
age and nutritional need. help consumers to make
recognize the need to evolve with
Choose from our assorted informed and right choices,
the changing preferences and
health-based, fruit-pulp and relevant to their health
continually align our products to
juice-based drinks, energy requirements.
scale, grow and satisfy consumer
and sports drinks, dairy-based
expectations.
beverages as well as packaged
and purified drinking water.

1. Cutting back on sugar

By optimizing sugar content in our products, we are keeping pace with the changing health preferences of our
aspirational consumers.

Low Sugar (LS) Products LS/NS Volume Mix % No Sugar (NS) Products
CY 2024
Consolidated 53%

India 44%

South Africa
w.e.f. 27 Mar 2024 100%

DRC 100%
w.e.f. 31 Aug 2024
Sting Gatorade 7up Gatorade Pepsi
zero zero Black
Morocco 89%

Sri Lanka 69%

Zimbabwe 65%

Zambia 29%

Mirinda Lipton Nepal 4% Tropicana Aquafina Evervess

100%

Annual Report 2024 99

2. Prioritizing nutrition
To deliver higher nutrient value across our product categories, PepsiCo is guided by the PepsiCo Nutrition Criteria
(PNC), which is also followed by Varun Beverages.
PNC enables our products to maintain a high nutrition value by guiding the Company on (a) standards of nutrients
to limit, (b) standards for food groups to encourage, and (c) standards for nutrients to encourage.

PepsiCo Nutrition Criteria (PNC)

Standards for Nutrients Standards for Food Standards for Nutrients

to Limit Groups to Encourage to Encourage
Nutrients that have been well- Food groups that have been Nutrients that have been
established as dietary factors that well-established as contributing identified as being commonly
can contribute to the risk of certain to healthier diets. under-consumed in a given
non-communicable diseases, when population. They can vary by
consumed in excess. market or region, and are often
called “shortfall nutrients”
For nutrients to limit, the criteria
contributing to healthier diets.
is based on a model diet of 2,000
kcal per day, with saturated fat
and added sugars at or below
10% of total energy, sodium at
or below 2,000 mg per day, and
no industrially produced partially
hydrogenated oils (PHOs).

Guidelines on Sugar Content:

1. WHO - 10% of total energy contribution.
2. The Healthy Choice Standards - Less than 4.5g/100g.
3. Beverages category for PepsiCo - 1g-7g/100 ml
(assuming 1cc liquid weighs 1g) https://www.pepsico.com/docs/default-source/policies/
pepsico-nutrition-criteria.pdf?sfvrsn=54fa599a_3

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Customer Satisfaction and GRM No. of Complaints Received Through

We are committed to prioritizing consumer PepsiCo Customer Care
satisfaction through our Consumer Response Program.
This program is designed to swiftly address and 17
resolve consumer concerns and grievances, ensuring
a courteous and timely response. The mechanism
employed by us fosters a consumer-centric approach, CY 2023
establishing a top down commitment to building trust 1,223
and enhancing transparency in addressing queries
and concerns.

Consumers can lodge their complaints through the

Received during Pending resolution at
Toll-Free number available on product labels and
the year the end of year
crowns. The PepsiCo Consumer Response System
(CRS) representative manages and organizes these
complaints, forwarding them to us through the Wilke
portal. Our Plant team, along with the Consumer Care/
Complaint Management System (CCMS) coordinator, 7
reviews the auto-generated email containing
relevant complaint details. The investigation involves
collaboration between our Plant team, Regional CY 2024
Quality Coordinator (RQC), and CCMS coordinator.
1,084
Customer Relationship Executives (CRE) promptly
address the concerns reported.

A detailed analysis of each reported complaint is

conducted by all plants, leading to root cause analysis. Received during Pending resolution at
Corrective and preventive actions are implemented the year the end of year
by the plant team, initiating an improvement plan to
prevent the reoccurrence of concerns and ensuring
consumer satisfaction. This comprehensive approach
reflects our commitment to continuous improvement We have registered no incidents
and responsiveness to consumer feedback.
of data loss, leaks or thefts of
Feedback:
customer data in CY 2024
Feedback is sent to PepsiCo CRS team by CCMS
coordinator, and Pepsi International (PI) Team connects
and responds to consumers, subsequently on SOS
basis. The complaints are tracked and reviewed monthly
on the basis of its nature, flavour, category and plant.

Annual Report 2024 101

GOVERNANCE
Governance

Embedding ESG in our Corporate DNA

At VBL, strong corporate governance continues to serve as the foundation for
achieving our evolving ESG goals. Guided by a culture of integrity, accountability,
and ethical practices, we remain committed to driving sustainability across
our value chain. Under the visionary guidance of our leadership team, we are
positively shaping the environmental and social landscapes in which we operate.
A blend of top-down leadership and bottom-up innovation has been instrumental in embedding ESG into every
aspect of our governance framework. This balanced approach ensures alignment with organizational goals, fosters
adaptability, and provides deeper insights into on-ground challenges, helping us deliver impactful results.

Corporate governance awards

PepsiCo’s International Bottler PepsiCo’s Best Bottler in PepsiCo’s ‘Better’

the Africa-Middle East-South category award 2023
of the Year 2022
Asia region 2022

Best Corporate Governance Pep+ Leadership on Overall Amesa Bottler Conference

Practices Award - 2024 Sustainability Culture in 2024 2024 Pep+ Climate Award

Best Corporate Governance Business Excellence Business Leader of the Year Business Brand Award
Practices - Varun Beverages (Corporate Governance) of Awards for Best Corporate for Best Corporate
Limited Award under Business The Year 2022 Award by Governance Practices (FMCG) Governance Practices - 2022
Brand Awards 2023 Prime Time Research Media - 2022
Pvt. Ltd.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Golden Peacock National CFI.CO (UK) for Best FMCG India Achievers’ Responsible Business
Quality Award - 2022 Corporate Governance (India) Award 2022 for Best Award for Best Corporate
2022 Corporate Governance Governance (FMCG) - 2022

PepsiCo’s Best Bottler in CFI.CO (UK for Best FMCG Golden Peacock Award for Award for Achievement
AMESA Sector for the Corporate Governance (India) Excellence in Corporate in Continuous
year 2021 - 2021 Governance - 2021 Improvement - 2021

Global Best PepsiCo’s Best Bottler PepsiCo’s Best Bottler PepsiCo’s Best Bottler
Employer - 2020 in AMESA Sector for the year of the year - 2019 of the year - 2014
2020

Annual Report 2024 105

Board Skills and Expertise

Member Icons of Committee they are members of Area of Expertise

Ravi Jaipuria
M M L S I G F C
Promoter & Non-Executive Chairman
Varun Jaipuria
Promoter, Executive Vice Chairman & M M C L S I G C
Whole-time Director
Raj Gandhi M M C C M L S I G F C
Whole-time Director
Rajinder Jeet Singh Bagga
M M L S I G C
Whole-time Director
Dr. Naresh Trehan
Non-Executive Non-Independent – L S G F C
Director
Abhiram Seth
– L S I G C
Independent Director
Dr. Ravi Gupta
C M L S F C
Independent Director
Anil Kumar Sondhi
Independent Director – L S I C

Rashmi Dhariwal
Independent Director M M C C M M L S F C

Sita Khosla
Independent Director M C L S F C

Audit, Risk Management Stakeholders’ Relationship Nomination and Corporate Social

and Ethics Committee Committee Remuneration Committee Responsibility Committee
Investment and Share Allotment Environment, Social and C Chairperson M Member
Borrowing Committee Committee Governance Committee

L Leadership S Strategic Planning I Industry G Global Business F Finance & Legal C Corporate Governance

Key managerial personnel

Sr. No. Name Designation

1 Raj Gandhi Whole-time Director

2 Rajesh Chawla Chief Financial Officer

3 Ravi Batra Chief Risk Officer and Group Company

Secretary

Training for Board of Directors in CY 2024

Name Attendance
Code of Conduct, Insider Trading, FCPA, POSH, Anti-bribery, regulatory changes/updates, 100%
sustainability initiatives, review of policies, confirmation of statutory filings on time & other
important matters.

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Board Committees of a director and recommendations to the Board

of Directors a policy relating to the remuneration
Audit, Risk Management and Ethics Committee of directors, key managerial personnel, and
other employees, as well as the evaluation of the
• Oversight of the Company’s financial reporting
performance of independent directors and the Board
process, examination of the financial statement and
of Directors;
the auditors’ report thereon and the disclosure of
its financial information to ensure that its financial • Devising a policy on diversity of the Board of
statements are correct, sufficient and credible. Directors;
• Recommendation for appointment, re-appointment • Identifying persons who are qualified to become
and replacement, remuneration and terms of directors and who may be appointed in senior
appointment of auditors of the Company and management in accordance with the criteria laid
approval of payment for any other services rendered down, recommending to the Board of Directors their
by the statutory auditors of the Company. appointment and removal, and specify the manner
for effective evaluation of performance of Board, its
• Reviewing with the Management the quarterly/annual
committees and individual Directors and review its
results and annual financial statements and Auditors’
implementation and compliance;
Report thereon before submission to the Board for
approval. This would, inter-alia, include reviewing • Determine whether to extend or continue the term
changes in the accounting policies and reasons for of appointment of the independent directors on the
the same, major accounting entries estimates based basis of the report of performance evaluation of
on exercise of judgement by Management, significant independent directors; and
adjustments made in the financial statements.
• Framing suitable policies and systems to ensure that
• Review the Management’s Discussion and Analysis of there is no violation by an employee as well as by the
financial condition and results of operations. Company of any applicable laws in India or overseas,
including:
• Scrutiny of inter-corporate loans and investments.
(i) The Securities and Exchange Board of India
• Evaluation of internal financial controls and risk
(Prohibition of Insider Trading) Regulations, 2015;
management systems.
and
• Reviewing the functioning of the whistle blower/vigil
(ii) The Securities and Exchange Board of India
mechanism.
(Prohibition of Fraudulent and Unfair Trade
• Formulate a detailed risk management policy which Practices relating to the Securities Market)
shall include: Regulations, 2003.
• Framework for identification of internal and external
CSR Committee
risks.
To formulate and recommend to the Board, a Corporate
• Measures for risk mitigation including systems and Social Responsibility (CSR) Policy which shall indicate
processes for internal control of identified risks. the activities to be undertaken by the Company as
• Business continuity plan. specified in Schedule VII of the Companies Act, 2013,
recommend the amount of expenditure to be incurred
• Evaluate and review the risk management plan, the on the CSR activities and monitor the CSR Policy of the
risk management system, including risk policy, risk Company from time to time.
process (risk identification, assessment, mitigation
and monitoring), cyber security processes and risk Environment, Social and Governance Committee
registers laid down by the Management.
• Approve the Company’s ESG strategy including
• Recommendation for appointment, removal and related targets and incentives;
terms of remuneration of the Chief Risk Officer.
• Provide oversight of the execution of the ESG
Strategy and the Company’s progress on its long-term
Stakeholders’ Relationship Committee
ESG commitments and targets;
To consider and resolve the grievances of
securityholders of the Company including but not • Provide oversight of the key policies and programs
limited to complaints related to transfer / transmission required to implement the ESG Strategy;
of shares, non-receipt of annual report, non-receipt of • Provide advice and direction to the Company’s
declared dividends and review of services rendered by management on implementation of the Company’s
the Registrar and Share Transfer Agent. ESG Strategy;

Nomination and Remuneration Committee • To identify opportunities and risks to the Company’s
operations, its reputation and its corporate
• Formulating the criteria for determining the
responsibility.
qualifications, positive attributes, and independence

Annual Report 2024 107

Our Policies

Remuneration Policy POSH Policy

This Policy includes, inter-alia, the criteria for This policy applies to all individuals, whether employed
determining qualifications, positive attributes, directly or indirectly, on various employment terms
independence of a Director, appointment and working at any VBL location. It addresses sexual
remuneration of Directors, KMPs, Senior Management harassment occurring both within and outside
Personnel and other employees of the Company. the company premises in connection with their
employment including during work-related travel or
stay arrangements provided by the company.

Anti-Bribery Policy Risk Management Policy

Officials are prohibited from giving or receiving bribes The Company has a robust Risk Management Policy
to any Government Officials or any other person or which identifies and evaluates business risks and
entity, including any person or entity in the private or opportunities. The Company recognizes that these
commercial sector, if the payment is intended to induce risks needs to be managed and mitigated to protect
the recipient to misuse his or her position and thereby the interest of the stakeholders and to achieve
give an unfair advantage to VBL. business objectives. The risk management framework
is aimed at effectively mitigating the Company’s
various business and operational risks through
strategic actions.

Vigil Mechanism Policy Archival Policy

The Company has adopted a Vigil Mechanism/ This Policy deals with the retention and archival of
Whistle Blower Policy to provide a platform to the corporate records of the Company in compliance
Directors and Employees of the Company to raise with the provisions of Securities and Exchange
concerns regarding any irregularity, misconduct or Board of India (Listing Obligations and Disclosure
unethical matters/dealings within the Company. The Requirements) Regulations, 2015.
Policy provides for adequate safeguards against
victimization of Directors and Employees who avail
of the vigil mechanism and also provides a direct
access to the Vigilance Officer or the Chairperson of
the Audit, Risk Management and Ethics Committee, in
exceptional cases.

Policy on Diversity of the Board of Directors

The Company recognizes the benefits of diversity perform its functions and give strategic guidance to
on the Board and believes that a diverse Board can the Company. The Company remains committed to
make significant contribution towards achievement of ensuring that a transparent nomination process is
Company’s strategic and commercial objectives more followed where appointments will be made on merits in
efficiently and effectively. The Company believes that order to strengthen the corporate governance, achieve
Board with diverse representation is better equipped business results, ensure sustainable development for
to leverage benefits emerging through members benefit of all stakeholders and enhance the reputation
with diverse thoughts, perspective, knowledge, of the Company.
experience and gender and is well equipped to

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Ethical Business Conduct and Other Policies

To comply with the provisions of Regulation 17(5) At VBL, we promote diversity, inclusiveness, and
of SEBI (LODR) Regulations, we have adopted treating all employees with respect. Encouraging an
“Code of Conduct for Board of Directors and Senior environment where every individual can develop, we
Management”. Code is available on the website of the steadfastly pledge to provide a workplace free from
Company at https://varunbeverages.com/wp- content/ discrimination, harassment, and abuse.
uploads/2023/03/19-Code-Of-Conduct- For-Board-
Of-Directors-and-Senior-Management- Revised.pdf In 2024, we are pleased to announce that none of
our suppliers were involved in any instances of forced
On the basis of declarations received from Board or child labour. We are dedicated to procuring raw
Members and Senior Management Personnel, the ingredients and packaging materials exclusively from
Executive Vice Chairman & Whole-time Directors PepsiCo’s approved suppliers. PepsiCo conducts a
have given a declaration that the Members of the rigorous certification process for all of our suppliers,
Board of Directors and Senior Management Personnel and we are no exception.
have affirmed compliance with the Code during the
CY 2024.

Annual Report 2024 109

Anti-corruption and Anti-bribery Communication and Transparency
We consistently monitor and communicate with Effectively communicating our anti-corruption policies
our employees to raise awareness about avoiding and procedures to all business partners, including
involvement in any corrupt practices. These suppliers and third parties, is a pivotal measure in
communications are regularly disseminated through cultivating a culture of transparency and integrity.
internal channels and are also published on our By making these policies publicly accessible on our
official website as part of our policies. The policy website, we underscore our unwavering commitment
commitments extend to all organizational activities to transparency in our operations.
and are communicated to stakeholders via email and
the official website. Non-disclosure Agreements (NDAs)
Requiring third parties to sign Non-disclosure
While we do not offer transition assistance programs Agreements (NDAs) that mandate compliance with
for continued employability post-retirement or our anti-corruption policies is a prudent and proactive
termination, we invest in training sessions for senior measure to safeguard our organization against
and middle-level employees. These individuals play a potential corruption risks. These NDAs serve as legally
crucial role in developing processes and procedures to binding agreements, providing a robust framework to
prevent corrupt practices within the organization. reinforce our expectations for ethical behavior.

To fortify our commitment against corruption, we have Due Diligence

established anti-corruption policies and procedures,
It is crucial to undertake thorough due diligence on our
which are effectively communicated to our business
business partners, particularly those operating in high-
partners. In our risk assessment, 100% of operations
risk areas or industries. This diligent approach ensures
are thoroughly evaluated for corruption-related risks,
that our partners align with and uphold our steadfast
and the assessment did not identify any significant
commitment to anti-corruption measures and ethical
risks. Our unwavering commitment to ethical business
business practices. By rigorously assessing and vetting
practices and compliance with relevant laws and
our business partners, we strengthen the foundation
regulations is further ensured through the following
of integrity and reinforce our dedication to fostering a
practices:
business environment built on ethical conduct.

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Fostering inclusion and diversity Business continuity plan

We aspire to build a culture that brings together people Considering the highly volatile and unpredictable nature
of all ages, gender and capacities on one common of environmental and ecological disasters, Business
platform and empowers them to unleash their full continuity is one of the utmost priorities for any
potential. Gender, age and differently abled therefore organization in the event of occurrence of any natural
comprise our core priority to foster an inclusive and disaster, pandemic, or any other likely event.
diverse workforce.
In case of any high risk event, to ensure there is no
Constant efforts are also being made to empower disruption in the major business operations including
women employees with special emphasis on sales, production and financial related functions, we
incorporating their ideas and perspectives across our have a detailed Business Continuity Plan in place to
business processes and strategies. implement the mitigation plan immediately, restore the
impacted operations within the defined time limits and
• To maintain awareness and comply with all applicable ensure all functions are operating well like back-up IT
laws and regulations of the countries of operation servers, office facilities, raw material suppliers, etc.
• To maintain confidentiality of all PepsiCo’s and its
partners information Crisis Management teams are formed which will be in
immediate action at the time of any disaster.
• To compete fairly for PepsiCo’s business and conduct
all such business on behalf of PepsiCo in a lawful Regular training is provided to them to ensure the clarity
manner of roles and responsibilities of all the teams for quick
response. Also, mock drills are conducted to check the
• To encourage a diverse workforce and provide a
preparedness to tackle such situations.
workplace free from discrimination, harassment or any
other form of abuse
We have formulated a detailed risk management
• To treat employees fairly, including with respect to policy which includes:
wages, working hours and benefits • Framework for identification of internal and external
risks
• To prohibit all forms of forced or compulsory labor
• Measures for risk mitigation including systems and
• To prohibit use of child labor processes for internal control of identified risks
• To respect employees’ right to freedom of association • Business continuity plan
and collective bargaining Principles of Business
Conduct of PepsiCo • Evaluate and review the risk management plan, the
risk management system, including risk policy, risk
• To provide safe and healthy working conditions process (risk identification, assessment, mitigation
and monitoring), cyber security processes and risk
• To carry out operations with care for the environment
registers laid down by the management
and to comply with all applicable environmental laws
and regulations • Recommendation for appointment, removal and
terms of remuneration of the Chief Risk Officer
• To maintain accurate financial books and business
records

• To deliver products and services meeting applicable

quality and food safety standards

• To support compliance with Supplier Code of

Conduct

• To observe policies regarding gifts and entertainment

and conflicts of interest

• To ensure that all land acquisitions meet IFC

Performance Standards

• To report suspected violations of the Code

Annual Report 2024 111

Information System and
VBL Code of Conduct
In our unwavering commitment to information security, we have strategically
implemented an Information Security framework designed to establish, execute,
monitor, and continually enhance our organization’s information security posture.
This comprehensive framework not only sets explicit objectives but also provides
a holistic direction for action. It reflects our management’s resolute commitment
to information security, carefully considering business requirements, legal and
regulatory implications, and contractual obligations.

Aligned with industry best practices, our framework It’s noteworthy that our commitment to information
encompasses the intricate interplay of business security has resulted in zero complaints from external
processes, human resources, and technology. It entities, attesting to our proactive approach to
operates under the guidance of meticulous policies and safeguarding data privacy and cyber security. This
procedures, ensuring robust governance and adherence achievement is not only a testament to our dedication
to the highest standards in the industry. By integrating but also positions us as a leader in adopting industry-
industry best practices, we fortify our information best practices for securing sensitive information.
security framework, making it a dynamic and resilient
safeguard against evolving threats.

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Information Security Organization Structure

Information Security Governance Committee (ISGC)

Chief Information Security Officer (CISO)

Information Security Manager (ISM)

Head of IT Infra Head of Applications

Implementer Implementer

Information, a precious asset for VBL, holds intrinsic to these objectives are conducted as necessary,
value, regardless of its origin or nature. The triad of reflecting our commitment to adaptability and
confidentiality, integrity, and availability forms the continuous improvement.
bedrock of trust and confidence, pivotal for both
our customers and the informed decision-making By adhering to international standards and maintaining a
process. In a steadfast commitment to safeguarding dynamic ISMS, we have not only secured our information
our information and information systems, we have but also aligned our information security practices
instituted an Information Security Management System with the strategic goals of the organization, fostering
(ISMS) in accordance with ISO/IEC 27001, meticulously a resilient and adaptive approach to safeguarding our
documented in our Information Security Manual. invaluable information assets.

The overarching objective of our ISMS is intricately When an individual violates the established rules and
aligned with the broader business objectives of the regulations, disciplinary action can be implemented to
organization. We ensure that our SMART (Specific, ensure accountability and maintain a productive and
Measurable, Achievable, Realistic, and Time-bound) ethical environment. The specific disciplinary actions at
objectives for ISMS are clearly defined, providing a VBL are determined based on the nature and severity of
roadmap for success. Regular reviews and adjustments the violation.

Code of conduct Code of conduct refrain

encourages employees from
employees to Disciplinary Action
When an individual violates the established
 Respect employees’  Practicing any sort of rules and regulations, disciplinary action
right to freedom bribery is implemented to ensure accountability
of association and and maintain a productive and ethical
 Violation of any
collective bargaining environment. The specific disciplinary actions
provision of the Code
at VBL are determined based on the nature
 Maintain accurate
and severity of the violation.
financial books and
business records
 Deliver products and
services meeting
applicable quality and
food safety standards

Annual Report 2024 113

CSR Initiatives:
Making a Sustainable Difference
We are committed to uplift the less privileged communities through focused
CSR initiatives in the areas of education, environmental sustainability and rural
development.

Imparting knowledge
with Shiksha Kendra
Vision Mission
We collaborated with Shishka
Kendra School, a social initiative To predominantly offer free To provide free access to medical
by the Delhi Public School healthcare support to the assistance i.e., access to medical
(Gurgaon) to impart education underprivileged and economically consultation, essential medicines,
to the underprivileged children. weaker sections of the society pathology and diagnostic tests
The objective of the initiative is by providing easy access to people in the community and
to help them become confident, to medical care. villages close to the plants, with an
knowledgeable and responsible aim to improve the overall health
citizens of India and fetch a index of the communities.
better standard of living for
themselves and their families. The
beneficiaries under this initiative
are entitled to avail the benefits
of DPS infrastructure and its other
resources including books, uniform
and transportation.

~34,000
Students availed free
education since 2003

Sponsored evening
schools at Delhi Public
Society for economically
weaker sections

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Sustainable healthcare through AARU clinic

Access to sustainable healthcare Foundation, which provides addressing critical healthcare

is a fundamental need, yet many quality healthcare to economically needs and improving community
marginalized communities in weaker sections in rural areas. well-being. Our efforts reflect
India face significant challenges Through AARU Clinics, we offer a deep commitment to
in receiving essential medical free consultations, medicines, and inclusive healthcare and social
services. Committed to making a diagnostic tests, ensuring accessible responsibility.
meaningful impact, we support and holistic care. Till 2024 we
the AARU Care initiative by RJ have served over 3.4 lakh patients,

3,40,000+ 11
Patients benefited in CY 2024 Operational clinics in India (6 in Uttar
Pradesh, 2 in Rajasthan and 1 each in
Madhya Pradesh, Punjab and Assam)

VBL Water Distribution Programme –

A Drop of Hope
In the heart of drought-affected regions, where
parched lands and dry wells tell a story of
struggle, VBL stepped forward with a mission—
ensuring access to clean drinking water for those
in need.
As intense heatwaves swept across the country,
thousands of families found themselves battling
severe water scarcity. With lakes drying up and
handpumps running empty, the necessity of
water became an urgent crisis. Recognizing this
dire need, VBL, through RJ Foundation, launched
an extensive Drinking Water Distribution Drive,
reaffirming its commitment to community service
and sustainability.

Annual Report 2024 115

 Through a well-coordinated effort, over 5.7 million liters
of clean drinking water were distributed across 10 states,
reaching 150 villages and positively impacting more than
150,000 families. The initiative brought not only relief
but also a renewed sense of hope to those struggling to
access this basic necessity.
VBL employees played a crucial role in the execution of
this drive. From identifying the most affected regions
to ensuring seamless distribution, their dedication was
evident. As expressed by team members, witnessing
the smiles on the faces of villagers was an immensely
fulfilling experience.

5.7 Million Liters

Drinking water distributed
150,000
Families benefitted

Pravah: Building skills for a sustainable future

Unemployment of youth is a grave Its structured, sustainable and to become a leading skill
challenge that India faces, having scalable framework enables skill development center. The
far-reaching socio-economic impact. development and facilitates an initiative is aligned with center’s
Pravah Skill Development Centre, enriching learning experience mission to train maximum skilled
by upliftment of unemployed youth to the underprivileged youth. workforce to meet domestic
in the marginalized sections of the With an objective to bring them regional requirements of a
society, is an attempt to mitigate into mainstream, Pravah aspires growing economy.
this challenge.

Courses offered by Pravah Skill Development Centre

Computer Course Fashion Designing Beauty Care

To acquaint students with basic To make students learn to stitch all To give women an opportunity to
knowledge of computers types of garments related to men, pursue their interests
women and children

English Communication Skills Job Assistance Graphic Designing Course

To help participants understand To help students get placed in In a graphic design course,
various aspects of communication respective jobs through assistance students learn how to use
and refresh their communication in job placement design software such as Adobe
skills Photoshop.

Tally
The Tally ERP course is designed
to help students understand the
17,000+
Upliftment of Unemployed Youth
principles.

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Risk and Opportunities Management

Risks are inherent in business, emphasizing the need for a robust risk assessment
and mitigation policy. At Varun Beverages, a reliable risk management process is
constantly engaged in identifying, evaluating and managing potential and actual
business risks.

Our risk management process is operational across all Components of Risk Management
our functions (production and distribution), facilities
and countries we operate in. Early assessment of risk Framework
and their seamless management drives better decision- • Risk identification
making and fosters preventive measures for impact • Risk analysis
control, ensuring business continuity and sustained
• Measure and monitor risk
growth.
• Risk controls and mitigation

Risk Identification Risk Assessment

Develop a comprehensive reporting system to Systematically classify key risks and analyze their
proactively identify potential risks. root causes.
Gather insights from stakeholders, incorporating Align risk assessment targets with business
historical data and industry benchmarks. objectives, identifying potential opportunities and
threats.

Risk Controls and Mitigation Monitoring and Reporting

Implement control measures to mitigate identified Continuously monitor risks and refine mitigation
risks effectively. strategies based on performance.
Establish clear action plans to address risks while Regularly update and share risk reports to ensure
optimizing resource allocation. transparency and informed decision-making.

Annual Report 2024 117

Key risks and mitigation plan

Risk Description Mitigation Plan

Demand Risk The risk of slowdown in the Varun Beverages strategic approach to provide the right
Company’s target markets and brand featuring right products at the right price and through
adverse impact on its sales the right channels, has enabled the Company to grow
velocity caused by a cyclical consistently in its sales volumes. An extensive portfolio,
downturn. comprising a wide range of products, helps it to cater to
the varying tastes and preferences of diverse consumer
segments. Steady growth is also attributed to presence
in relatively underpenetrated markets with favorable
demographics, growing population, and advantageous
climate.

Business The Company relies on Varun Beverages has steadily strengthened its partnership
Agreement Risk strategic relationships and with PepsiCo over the past three decades, solidifying its
agreements with PepsiCo. market ties, expanding its territories and sub-territories,
Termination of agreements and diversifying its production and distribution capabilities
or less favorable renewal across a broader array of PepsiCo beverages. These factors,
terms could adversely affect along with the Company’s focus on adding multiple SKUs
profitability. into the portfolio and developing a stronger distribution
network, has helped it to win a larger market share for
PepsiCo, garnering its trust and continued patronage. The
bottling appointment and trademark license agreement
for India with PepsiCo India has been extended till April
30, 2039, from October 2, 2022, earlier, signifying strong
partnership, built on the foundation of mutual trust and
support. Collaborating as active development partners,
investing in joint projects and business planning on strategic
issues ensures a close and mutual beneficial relationship
between the Company and PepsiCo.

Regulatory Risk Regulatory risks to the Sustainability is at the core of all business decisions and
Company include new and operations within Varun Beverages. Along with PepsiCo,
evolving regulations on the Company takes proactive steps to collaborate with the
consumer health. Business government and other regulatory authorities to ensure clear
is also at the risk of understanding of the facts and prevent unfair singling out
adverse impact on account of its products. VBL, along with the NGO’s, communities it
of Company’s products being operates in, and other stakeholders, is continuously focused
targeted for discriminatory tax on establishing and implementing sustainability solutions
and packaging waste recovery. in the areas of environment, social and governance. Eco-
friendly manufacturing practices are consistently adhered to
and strong emphasis is placed on addressing issues related
to packaging waste recovery / recycling, water management
and greenhouse gases emissions. As a part of its
sustainability commitment and for phased implementation
of 100% recycling of used PET bottles, VBL has collaborated
with GEM Enviro Management Ltd. Measurement and
improvement in the Company’s carbon footprint and water
footprint assurance is further achieved through alliance
with Deutsch Quality Systems (India) Private Limited. The
Company also aligns with PepsiCo’s strategy of introducing
healthier and “zero sugar” variant of products, solidifying its
position as a responsible brand that cares for its consumers.

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Risk Description Mitigation Plan

Business Business viability risk amounts VBL’s straightforward strategic approach and financial need
Viability Risk to the financial and/or ensures that any future acquisitions or partnerships comply
performance risk stemming with the Board’s acquisition guideline and bring value to
from Company’s inability to the Company. Performance of the newly acquired territories
integrate the operations of and business viability is ensured by the Company through
newly acquired territories concentrated efforts and initiatives. This includes significant
and sub-territories or derive financial investment and considerable time spent by the
potential operating and cost management to develop local market strategies that are
efficiencies from them. capable of mitigating possible cultural and language barriers
as well as incorporating existing business practices into new
activities.

Consumer Inability to adjust with the Close collaboration with PepsiCo enables the Company to
Preference Risk evolving consumer health regularly evaluate the evolving habits of its consumers and
trends and failure in clarifying align its product innovation with the changing demand,
misunderstandings about the therefore augmenting its range of products and remaining
health impacts of consuming relevant in the competitive business landscape. PepsiCo’s
soft drinks could harm new and healthy product plan with greater focus on zero /
demand. limited calorie content and sugar content also augurs well
for VBL.

Raw Material An interruption in the supply or A series of initiatives and programs are implemented at VBL
Risk significant increase in the price to optimize cost and operational efficiencies. Concentrated
of raw materials or packaging efforts, including backward integration and consolidated
materials may adversely procurement of raw materials, are constantly made to reduce
affect the Company’s business the cost of goods sold and increase the Company’s cash
prospects, results of operations flows. The Company also enjoys a good bargaining power
and financial condition. with its suppliers owing to its scale of operation, resulting
in better work-ing capital management. Other than this, the
Company is consistently committed to optimize its asset
management and utilization, leading to higher operating
efficiency and amortization of overheads costs on a wider
case. Innovative solutions further augment VBL’s process
efficiency ensuring consolidated operational data from
production, scheduled sourcing, and superior monitoring
of the supply of goods from manufacturers to the retail
point of sale.

Sustainable The cost of recyclable We are making substantial progress toward achieving our
packaging costs materials, such as recycled Mission 2025 commitment of 100% recycling rates. This
and market PET (rPET) and aluminum, includes efforts to increase the overall packaging collection
availability can affect packaging costs. rate, indicating a commitment to responsible waste
Increased prices may impact management. Additionally, we are focused on increasing the
our sustainability efforts, use of recycled PET in our PET bottle packs, emphasizing
especially if these materials a shift towards more sustainable packaging materials.
are essential for eco-friendly Our target is to achieve 30% usage of r-PET in our total
packaging. In areas with plastic consumption. We are working with GEM Enviro
high plastic consumption, Management Ltd for recycling plastic waste, conducting
inadequate collection and awareness programmes for communities, uplifting the lives
recycling infrastructure can be of ragpickers, etc.
a challenge. This may affect
our ability to source recycled
materials or manage our
packaging waste effectively.
Supply constraints or high
costs can pose challenges to
access to high quality recycled
materials (like rPET) at
reasonable prices

Annual Report 2024 119

 Risk Description Mitigation Plan

Water Managing packaging-related Exploring and implementing 150+ process improvements

usage and emissions and waste is vital and solutions for efficient water usage. We have set
replenishment for achieving sustainability the target to reduce our usage ratio 1.40x by 2025. We
commitments, such as Net have to meet regulatory requirements related to water
Zero. To maintain a positive replenishment, ensuring they contribute to overall water
brand image and meet resource conservation. However, we are very much ahead of
customer expectations as the regulations. We have adopted 192 water bodies in the
consumer preferences are vicinity of our manufacturing plants which help to replenish
increasingly leaning towards groundwater reserves. We are committed to keeping our
environmentally friendly groundwater recharge twice the total water we use for our
products and packaging. beverage production. Industries may implement sustainable
Identifying regions and areas sourcing practices to reduce their water footprint and use
that are experiencing water resources more efficiently.
scarcity due to factors like
population growth, climate
change, and over¬extraction
of water resources. Analyzing
the impact of climate change
on water availability, including
changes in precipitation
patterns and the frequency
of droughts and floods.
Recognizing the importance of
maintaining water availability
for local communities’
water requirements in
overexploited and critical
zones as per CWGB. Increased
concentrations of greenhouse
gases in the atmosphere
trap heat, resulting in global
warming.

Carbon Climate change driven by Aligning our future business growth targets with our carbon
Footprint carbon emissions can disrupt footprint initiatives. Increasing sustainable packaging
Management ecosystems and threaten mix to reduce usage of future requirements. Engaging
biodiversity. Governments with stakeholders, including employees, suppliers, and
may use carbon footprint communities, is often a crucial part of successfully
assessments to set emission implementing carbon footprint commitments.
reduction targets, implement
We have set our target to achieve Net Zero by 2050 over
regulations, and incentivise
base year 2023 under our strategic sustainability approach.
greener practice. Changing
perceptions of community
about greenwashing.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Climate risks and opportunities

Transition risks

Risk Description Mitigation plan

Temperature Higher temperatures can lower Invest in energy-efficient cooling

manufacturing efficiency, increase systems and insulation to combat
cooling costs, and pose heat stress rising temperatures. Protect workforce
risks, impacting worker health and health by creating heat-resistant work
productivity. environments, offering flexible hours,
providing hydration and electrolytes,
and conducting heat stress assessments.
High-stress jobs can be managed with
frequent job rotations to ensure safety
and maintain productivity.

Water availability Water availability challenges include To address water challenges, companies
droughts, which can lead to water can implement advanced water
scarcity and disrupt production management systems focused on
dependent on significant water usage. recycling and conservation to use water
Groundwater depletion also poses more efficiently. Additionally, investing
risks, particularly for sites reliant on in technologies that tap into alternative
it, potentially increasing water costs. water sources, such as desalination and
Additionally, floods caused by excessive rainwater harvesting, can further ensure
rainfall can damage infrastructure, sustainable water availability.
disrupt operations, and impact supply
chains.

Weather events The rising frequency and intensity of To mitigate risks, strengthen
cyclones and storms can disrupt supply infrastructure to endure extreme
chains, damage infrastructure and cause weather with resilient designs and
operational shutdowns. backup power systems. Additionally,
diversify supply chains to lessen
dependence on regions vulnerable to
extreme weather events.

Water sources Glacial melt can alter water availability, To address glacial melt, improve
impacting regions that rely on glacialfed water efficiency to reduce reliance
water sources. on glacialfed sources and implement
monitoring systems to anticipate and
adapt to changes in water availability.

Land degradation Desertification, leading to the loss of To mitigate the impact of desertification,
arable land, can disrupt agricultural companies can source raw materials
supply chains and drive up raw material from regions less vulnerable to it and
costs. invest in land restoration projects to
combat soil degradation, ensuring
continued agricultural productivity.

Annual Report 2024 121

Sustainable Tax Practice:
Furthering our ESG Commitment
Tax compliance and implementing sustainable tax practices has been central
to our business priorities. Adhering to tax regulatory compliances reflects our
commitment to ESG and corporate governance.

Compliance Risk Management

Key heads for

Accounting and
tax spectrum Tax Technology
Governance
at VBL

Tax Planning with High Level of Ethics

Business Rationale and Integrity

Engagement with
Tax Authorities

Compliance non-compliance of tax regulations or tax evasions, we

VBL strictly adheres to all tax regulatory compliances, refrain from taking any aggressive tax positions. Only
periodical filings, and reporting for all the applicable tax those tax incentives, that are aligned with our overall
laws. We express zero-tolerance to any non-compliance, business objective are availed in respective jurisdictions.
supported by our efficient compliance tracking tool that
features a pre-defined escalation matrix for instant Engagement with tax authorities
flag off. We strive to stand out as ‘the most trusted and tax
compliant company’ in our operational areas. To ensure
Accounting and governance this, we provide full support and actively engage with
Taxes on all fronts – input, output, corporate and the tax authorities to understand the business model
withholding taxes are properly accounted for in and tax positions.
alignment with applicable laws and accounting standard
through a dedicated team of tax experts. In case of Risk management
any change in existing tax laws, our internal team of Risks within VBL across the key risk areas are constantly
tax experts evaluate the changes and its implications monitored and mitigated. An internal risk control
on our business transactions. An updated SOP is then process continually identifies, measures, analyzes and
circulated to implement the changes amongst relevant manages such risks. A comprehensive review mechanism
stakeholders. is also set up to keep all transactions tax compliant and
ensure that they fall within no risk or low risk categories.
Tax planning with business rationale The responsibility for such review is vested with the
A transparent process of tax risk assessment and Audit, Risk Management & Ethics Committee, Internal
management, integral to tax planning at VBL, is Auditors and Statutory Auditors.
implemented. In compliance with our zero-tolerance for

122 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Tax technologies
Digital recording and reporting of all tax transactions is becoming a norm with the advancement in online
governance and tax technology. VBL has made adequate investments towards this to ensure accurate and faster
reporting.

Vendor Management Identification and System generated Sale GST portal reporting
recording in Invoices, E-invoices and
correct ledger E-way bills

Strong vendor Powerful SAP-based VBL SAP is integrated Filing of GST returns for
management process identification process with the E-invoicing all outward supplies basis
with robust KYC enabling issuance of PO portal and E-way bill system-generated sales
documentation & using correct HSN/SAC portal of the government register
verification of historical and tax code
compliances under GST
laws

Vendor mapping with System-based transaction System configuration This ensures that all
correct HSN/SAC identification by an restricts invoice gen- the recorded outward
code and GST rates internal team eration without an supplies get reported
E-invoice and E-way bill along with the correct tax
(as prescribed under the liability
GST laws)

Vendor mapping with Controlling of the

correct withholding input tax entitlement
tax codes for proper through the system to
deduction of withholding ensure that the input
tax while recording tax credit is not availed
transactions wrongly (not permitted as
per GST laws)

Annual Report 2024 123

Integrity and ethical conduct Corporate Taxes, TDS, TCS, Capital Gains Tax
Ethical conduct and integrity is upheld across the and Dividend Distribution Tax
organization and supported by strong and transparent Over the years, VBL has made a significant contribution
accounting principles. Unethical behavior by any of our to the exchequer by way of Corporate Tax, TDS on
employees and/or third-party working in or behalf of the Employees, TDS on others, TCS, Capital Gains and
company is not tolerated and strict policy measures are the Dividend Distribution Tax. Given an increase in
implemented against them. The company has a zero- turnover in the last five years, its Corporate Income Tax
tolerance policy on integrity in place, which is applicable has increased – from ` 934.5 Million in FY 2019-20 to
for all VBL’s dealings with vendors, customers, third- 5,974.5 Million in FY 2023-24.
party consultants and government authorities.

Contribution to Exchequer

Tax Contribution

Direct Tax Indirect Tax

Corporate TDS TDS TCS Capital GST

Tax Employees Others Gains Tax

Tax trends in the last five years:

(` Million)
Description FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Corporate Tax
934.5 347.2 1,383.9 4,988.9 5,974.5
(Excluding Interest u/s 234A/234B/234C)

TDS on Employees
430.1 454.9 561.0 769.0 750.4
(As per Tax Audit Report)

TDS on Others
310.6 245.7 484.7 770.1 857.5
(As per Tax Audit Report)

TCS
2.6 29.6 72.2 118.1 130.0
(As per Tax Audit Report)

Dividend Distribution Tax 91.7 - - - -

Capital Gains Tax (Including in Corporate

0.1 1.2 0.1 2.2 1.0
Tax mentioned above)

Note: For taxation purpose, FY refers to Financial Year defined as per the Income Tax Act, 1961 i.e. April 1 to March 31.

124 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Indirect Tax - GST

The key product of VBL is taxable at a higher rate of 28% GST with 12% cess. In the last five years, the total payment
of Gross GST on outward supplies stands at ` 163,646.8 Million. This has increased from ` 23,280.4 Million in
Financial Year 2019-20 to ` 53,970.1 Million in Financial Year 2023-24.

Tax trends in the last five years:

(` in Million)
Gross Tax Paid through Paid through
Financial Year
Payable (`) Cash (`) ITC (`)

2019-20 23,280.4 12,024.5 11,255.9

2020-21 24,690.8 12,309.6 12,384.1

2021-22 31,918.9 15,639.0 16,276.9

2022-23 53,067.0 26,194.6 26,872.4

2023-24 53,970.1 28,708.3 25,261.8

Annual Report 2024 125

INTERNATIONAL
TERRITORIES
Growing Stronger in the
International Business
Crossing boundaries to create the right ESG impact, our ESG strategy drives
meaningful action and global growth. We champion sustainability through
inclusive practices that create lasting impact. By integrating environmental
stewardship, social responsibility, and strong governance, we foster positive
change across our operations and communities, reinforcing our commitment to
a better future.

Varun Beverages South Africa

Environment
• Reduction in PET blowing pressure
• Implementation of post-blowing air recovery systems across all plants 0.25 kWh/case
• Assessment of steam traps and optimization of condensate return Electricity consumed
recovery in 2024
• Exploration of solar power adoption across all plants

1.81 Liters
• Installation of flow meters in key areas across all plants
• Installation of water recovery systems on the blender in all plants
• Optimization of CIP water usage Water consumed per liter of
• Implementation of cut-off switches for hand wash stations beverage production in 2024
• Partnership with regional recycling companies for the collection of used
PET bottles

Social
• Social media campaign for Women’s Month
• Launch of Reboost Pink in affiliation with Women’s Month gatherings 28%
• Collaborative initiatives with Bethany House to support women affected Diversity in CY 2024
by domestic violence
• Updated contractor management system
• Enhanced Permit to Work system with a special focus on improving
frontline awareness of risk mitigation

Governance awards and achievement

Compliance Training
• Ensuring strict adherence to Conducted various compliance training
corporate policies and applicable programs.
laws.
• Conducting regular audits to uphold
the highest standards of ethical
conduct.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Varun Beverages Morocco

Environment

0.27 kWh/case 1.99 Liters

• Installed flow meters for precise water usage
monitoring and optimization.
(~13% reduced from 2023) Water consumed per liter of
• Enhanced RO efficiency in areas where recovery
Electricity consumed in 2024 beverage production in 2024
rates were below the designed capacity.

• Implementing solar power panels to minimize

reliance on conventional energy sources. 1.6 MW 11%
Rooftop solar power capacity Renewable Energy Mix

Social
• Promoting gender diversity by integrating women • Launched recruitment campaigns in rural areas to
into the workforce to foster inclusion within the create livelihood opportunities for local residents.
organization.

• Supporting employee well-being and engagement

through initiatives like pilgrimage programs, sports
7.2%
Diversity in CY 2024
activities, summer camps, and team-building events.

• Contributed social aid to earthquake victims in the

Employer of the year
Al Haouz region.
By EFE Morocco in 2024

Governance awards and achievement

Training
Conducted various compliance training programs

Annual Report 2024 129

 Varun Beverages Zimbabwe

Environment
• Installed a water treatment plant to minimize water • Participated in National Tree Planting Day in
wastage collaboration with NMB Bank and the City of Harare

• Set up solar power plants to reduce reliance on • Replaced diesel/petrol forklifts with electric vehicles
conventional energy sources (EVs)

• Lowered carbon emissions by reducing coal usage • Introduced EVs for last-mile delivery to further reduce
with lighter grammage per 8 oz environmental impact

0.32 kWh/case 1.60 Liters 3.5 MW 1,600+

(~13% reduced from 2023) (~10% reduced from 2023) Rooftop solar power capacity Trees planted in 2024
Electricity used in 2024 Water utilized for per liter of Renewable Energy Mix ~10%
beverage production in 2024

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Social
• Empowering marginalized women, including those • Supporting education for underprivileged students
from economically disadvantaged backgrounds, through sponsorship programs.
individuals with special needs, and war widows, by
• Contributing to community well-being by extending
providing sustainable livelihood opportunities.
aid and support during the Cholera outbreak.

6,700 push carts

Deployed to create employment for women in rural,
semi-urban, and urban areas, with an initiative launched
by the President of Zimbabwe

Sponsored first PHD

student program 18%
Diversity in CY 2024
For higher education
in India

Sponsored several Most socially

school children responsible and
From underprivileged society friendly
backgrounds company
In Zimbabwe

Governance awards and achievement

Compliance Training
Varun Beverages Zimbabwe operates in full Conducted various compliance
compliance with applicable laws, policies, and training programs.
regulations.

Annual Report 2024 131

 Varun Beverages Nepal

Environment
• Established a 2MW solar power plant at the
manufacturing facility.

• Installing active harmonic filters at plants to reduce

power consumption.

• Partnering with NGOs and local organizations to plant

trees within the plants and surrounding parks.

• Enhancing the water recovery system for bottle

washing operations to improve efficiency.

• Installing bag filters at manufacturing sites to reduce

carbon and other gas emissions.

• Phased transition from diesel forklifts and staff buses

to electric vehicles.

• Exploring plastic waste collection and recycling

initiatives with third-party vendors.

0.45 kWh/case 1.59 Liters

(2% reduced from 2023) (3% reduced from 2023)
Electricity consumed in 2024 Water consumed per liter of
beverage production in 2024

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Social
• Promoting diversity and inclusion across our • Offering free medical checkups for the community.
workforce and supply chain.
• Contributing to the Birat Eye Clinic to support eye
• Committed to fair labor practices and prioritizing the care.
well-being of our employees.
• Constructing a temple in Ramgram, near
• Supporting education and community initiatives to Navalparasi, Nepal.
create a positive societal impact.
• Ensured employee engagement through various
• Undertaking CSR efforts in healthcare, community team-building programs.
development, and collaborations with local law
enforcement.

• Established the AARU Clinic in Kathmandu for

healthcare access.
20%
Diversity in CY 2024

Governance awards and achievement

Compliance Training
• Ensuring strict adherence to corporate policies Conducted various compliance training
and applicable laws. programs.

• Conducting regular audits to uphold the highest

standards of ethical conduct.

Annual Report 2024 133

 Varun Beverages Zambia

Environment
• Implemented initiatives like CIP conservation, RO
water recovery, and equipment optimization to
enhance water savings.

• Optimized energy use through automation, solar and

LED lighting, and photo sensor installations.

• Exploring plastic waste collection and recycling in

partnership with third-party vendors.

0.27 kWh/case 2.03 Liters

(~16% reduced from 2023) (~15% reduced from 2023)
Electricity used in 2024 Water utilized for per liter of
beverage production in 2024

Social
• Collaborated with World Vision to implement various • Conducted multiple employee training and
CSR initiatives. recognition programs.

• Partnered with Project Concern Zambia (PCZ) for

reforestation, safe drinking water access, and the 27%
Strong Zambia Project empowering young girls. Diversity in CY 2024

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Governance awards and achievement

Compliance Training
• Varun Beverages Zambia ensures compliance Conducted various compliance
with applicable regulations through training programs.
dedicated legal teams, regular audits, and
employee training programs.
• Committed to ethical business practices,
strengthening its reputation as a responsible
corporate entity while mitigating legal risks
for sustainable growth.

Annual Report 2024 135

 Varun Beverages Sri Lanka

Environment
• Installed timers to automatically stop the ammonia • Launched the “Clean Green Sri Lanka” initiative to
compressor pump after use. tackle PET plastic waste by collecting and recycling
used plastic through dedicated collection bins.
• Replaced CFL and FTL lamps with energy-efficient
LED lighting.

• Repaired LP air leakage points and established an

SMT for weekly audits and corrective actions.
0.62 kWh/case
Electricity used in 2024
• Installed water flow meters at key consumption
points for accurate monitoring and control.

• Repurposed rejected RO water for JAR washing,

1.75 Liters
(~5% reduced from 2023)
enhancing resource efficiency and reducing waste. Water utilized for per liter of beverage production in 2024

Social
• Promoted paddy field cultivation to support farmers’
growth and uplift the community.

• Provided on-the-job training to enhance employees’

operational skills and situational awareness.

7%
Diversity in CY 2024

Governance awards and achievement

Compliance Training
Varun Beverages Sri Lanka ensures compliance with Conducted various compliance
applicable regulations through dedicated legal teams, regular training programs
audits, and employee training programs.
• Committed to ethical business practices, strengthening its
reputation as a responsible corporate entity while mitigating
legal risks for sustainable growth.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Awards and Recognition

We are honored to be recognized with awards and accolades for our commitment
to excellent corporate governance, strong business processes, and sustainable
growth. These achievements reflect our dedication to meeting both our business
objectives and our social and environmental sustainability goals.

2024 2022
• Best Corporate Governance Practices • PepsiCo’s Best Bottler in the Africa-
Award, Pep+ Sustainability award, ABC Middle East-South Asia region
2024 Pep+ Climate Award • Golden Peacock National Quality
Award
• Golden Peacock award for
Excellence in Corporate
Governance
• CFI.CO (UK) for the 4th
Consecutive Year for Best FMCG
Corporate Governance (India)
2023 • Business Brand Award for Best
• PepsiCo’s ‘Better’ category award Award by Prime Time Research Corporate Governance Practices
for our sustainability endeavors Media Pvt. Ltd. • CNBC TV18 - Incredible Brands of
• PepsiCo’s International Bottler of the • Best Corporate Governance India Awards for Best Corporate
Year 2022 Practices - Varun Beverages Governance of the Year
Limited Award under Business
• PepsiCo’s Best Bottler in the Africa-
Brand Awards
Middle East-South Asia region
• Business Excellence (Corporate
Governance) of The Year 2022 2020 2019
• Winner of Best FMCG • Varun Beverages Limited –
Corporate Governance India Bottler of the Year 2019 by
2021 2020 awarded by Capital Finance PepsiCo in South Asia Region
• Winner of Best FMCG International (UK) • Winner of Best FMCG
Corporate Governance India • Winner of Bottler of the Year, Corporate Governance India
2021 awarded by Capital 2019 by PepsiCo in AMESA sector 2019 awarded by Capital
Finance International (UK) (third (Africa, Middle East and South Finance International (UK)
successive year) Asia) received in 2020 • Varun Beverages Limited –
Global Best Employer Award

2018 2017 1997

• National Best Employer Award • Varun Beverages (Nepal) Private Mr. Ravi Jaipuria, the only Indian
by ET Now, in collaboration Limited – Best Unit of the Year Company’s promoter to have
with World HRD Congress received PepsiCo’s International
• Varun Beverages Lanka (Private)
• Distinguished Entrepreneurship Limited – Donald M Kendall Bottler of the Year Award in 1997
Award in the PHD Annual Award by PepsiCo for Small
Awards for Excellence 2018 to Developed Markets
Mr. Ravi Jaipuria
• VBL Sonarpur Plant – Best Plant
of the Year

2016 • VBL Sonarpur Plant – CII Award

for Food Safety
• VBL India – FOBO Unit of
the Year
• Varun Beverages Lanka
(Private) Limited – FOBO
Country of the Year

Annual Report 2024 137

Corporate Information
Board of Directors

Category Name of Directors

Non-Executive Chairman Mr. Ravi Jaipuria*
Executive Vice Chairman & Whole-time Director Mr. Varun Jaipuria*
Executive / Whole-time Directors Mr. Raj Gandhi
Mr. Rajinder Jeet Singh Bagga
Non-Executive, Non-Independent Director Dr. Naresh Trehan
Non-Executive, Independent Directors Dr. Ravi Gupta
Mr. Abhiram Seth
Mr. Anil Kumar Sondhi
Ms. Rashmi Dhariwal
Ms. Sita Khosla

*Mr. Ravi Jaipuria and Mr. Varun Jaipuria are Promoters of the Company.

Chief Financial Officer Registrar and Share Transfer Agent

Mr. Rajesh Chawla KFin Technologies Limited
Selenium Tower B, Plot Nos. 31 & 32,
Chief Risk Officer & Financial District, Nanakramguda,
Group Company Secretary Serilingampally Mandal,
Mr. Ravi Batra Hyderabad – 500 032
Toll Free No. : 1800 309 4001
Joint Statutory Auditors Email: einward.ris@kfintech.com
M/s. J.C. Bhalla & Co Website: www.kfintech.com
Chartered Accountants, SEBI Registration No.: INR000000221
New Delhi
List of Bankers
M/s. O.P. Bagla & Co LLP
1 Axis Bank Limited
Chartered Accountants,
New Delhi 2 HDFC Bank Limited
3 IndusInd Bank Limited
Corporate Office 4 ICICI Bank Limited
RJ Corp House, Plot No. 31, 5 JP Morgan Chase Bank N.A.
Institutional Area, Sector-44,
6 YES Bank Limited
Gurugram - 122 002
7 The Hongkong and Shanghai Banking
Registered Office Corporation Limited

F-2/7, Okhla Industrial Area, Phase-I 8 The Federal Bank Limited

New Delhi - 110 020 9 Kotak Mahindra Bank Limited
10 RBL Bank Limited
11 IDFC FIRST Bank Limited
12 Standard Chartered Bank
13 DBS Bank India Limited

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

GRI Index
GRI content index
Statement of use VBL has reported the information cited in this GRI content index for the period
January 1, 2024 to December 31, 2024 in accordance with the GRI Standards.
GRI 1 used GRI 1: Foundation 2021

GRI Standard/ Page Explanation

Disclosure Location
Other Source Number
GRI 2: General 2-1 Organizational details 03-07 Future Ready, Eco-steady. A Varun Beverages Limited (VBL)
Disclosures 2021 Step Ahead Already a public listed company having
its headquarters in India.
Country of Operations: Pouring
Refreshments across Borders,
Expansion in a World of
Refreshment Refer page (18-19)

2-2 Entities included in the 18-19 Pouring refreshments across

organization’s sustainability borders, Expanding a world
reporting of refreshment

2-3 Reporting period, 36-37 About the ESG Report

frequency and contact point

2-4 Restatements of 36-37 About the ESG Report Page 72-73: The company
information adopted the SBTi methodology
for calculating GHG emissions
starting from CY 2024.
Consequently, the GHG
emissions for CY 2022 and
CY 2023 have been restated
using this approach.

2-5 External assurance 36-37 About the ESG Report

2-6 Activities, value chain 78-81 Sourcing with Care

and other business
relationships

2-7 Employees 84-91 Future-Ready Workforce

Shaping our Future

2-8 Workers who are not 84-91 Future-Ready Workforce

employees Shaping our Future

2-9 Governance structure and 104-111 Embedding ESG in Our

composition Corporate DNA

2-10 Nomination and selection 104-111 Embedding ESG in Our

of the highest governance Corporate DNA
body

2-11 Chair of the highest 104-111 Embedding ESG in Our

governance body Corporate DNA
32-33 Our Board: Enriched by
diversity, focused on value

2-12 Role of the highest 104-111 Embedding ESG in Our

governance body in Corporate DNA
overseeing the management
32-33 Our Board: Enriched by
of impacts
diversity, focused on value

Annual Report 2024 139

GRI Standard/ Page Explanation
Disclosure Location
Other Source Number
2-13 Delegation of 104-111 Embedding ESG in Our
responsibility for managing Corporate DNA
impacts

2-14 Role of the highest 38-39 Message from Executive

governance body in Vice Chairman: Building a
sustainability reporting Future That’s Ready and
Steady
50-51 Leading the charge for a
sustainable tomorrow

2-15 Conflicts of interest 104-111 Embedding ESG in Our There have been no complaints
Corporate DNA of conflict of interest.

2-16 Communication of critical 104-111 Embedding ESG in Our The Vigil Mechanism
concerns Corporate DNA encourages directors and
employees to report genuine
concerns regarding unethical
behavior, fraud, leakage of
sensitive information, or policy
violations. The company
upholds the highest ethical and
legal standards and assures
protection to those reporting
misconduct. It also allows
access to the Chairperson of
the Audit and Risk Management
Committee in exceptional cases.
However, it doesn’t excuse
breaches of confidentiality or
false allegations.

2-17 Collective knowledge of 104-111 Embedding ESG in Our

the highest governance body Corporate DNA

2-18 Evaluation of the 104-111 Embedding ESG in Our ESG-linked Incentive

performance of the highest Corporate DNA Policy under Sustaining an
governance body Empowered Workforce

2-19 Remuneration policies 104-111 Embedding ESG in Our ESG-linked Incentive

Corporate DNA Policy under Sustaining an
Empowered Workforce

2-20 Process to determine 104-111 Embedding ESG in Our

remuneration Corporate DNA

2-21 Annual total 104-111 Embedding ESG in Our

compensation ratio Corporate DNA

2-22 Statement on sustainable 38-39 Message from Executive

development strategy Vice Chairman

2-23 Policy commitments 104-111 Embedding ESG in Our

Corporate DNA

2-24 Embedding policy 104-111 Embedding ESG in Our

commitments Corporate DNA

2-25 Processes to remediate 104-111 Embedding ESG in Our

negative impacts Corporate DNA

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

GRI Standard/ Page Explanation

Disclosure Location
Other Source Number
2-26 Mechanisms for seeking 104-111 Embedding ESG in Our
advice and raising concerns Corporate DNA
2-27 Compliance with laws 104-111 Embedding ESG in Our
and regulations Corporate DNA
2-28 Membership associations 27 List of the top trade and
industry chambers and
associations provided
2-29 Approach to stakeholder 42-43 Focusing More on
engagement Empowering our Pillars
44-46 Prioritizing What Matters
2-30 Collective bargaining 104-111 Embedding ESG in
agreements Our Corporate DNA
84-91 Future-Ready Workforce
Shaping our Future
Material topics
GRI 3: Material 3-1 Process to determine 44-46 Prioritizing what Matters
Topics 2021 material topics
3-2 List of material topics 44-46 Prioritizing what Matters Our materiality matrix includes
all our material issues, and
they are integrated within
the different sections of the
Sustainability Report
Economic
performance
GRI 3: Material 3-3 Management of material 44-46 Prioritizing what Matters
Topics 2021 topics
GRI 201: 201-1 Direct economic value 28-31 Driving Consistent Results
Economic generated and distributed Year after Year
Performance 201-2 Financial implications 117-121 Risk and Opportunities
2016 and other risks and Management
opportunities due to climate
change
201-3 Defined benefit 84-91 Future-Ready Workforce
plan obligations and other Shaping our Future
retirement plans
201-4 Financial assistance 28-31 Driving Consistent Results No share of any government in
received from government Year after Year the shareholding structure
Market presence
GRI 3: Material 3-3 Management of material 108 Diversity policy under
Topics 2021 topics Embedding ESG in
Our Corporate DNA
84-91 Future-Ready Workforce
Shaping our Future
GRI 202: Market 202-1 Ratios of standard 108 Diversity policy under
Presence 2016 entry level wage by gender Embedding ESG in
compared to local minimum Our Corporate DNA
wage 84-91 Future-Ready Workforce
Shaping our Future
202-2 Proportion of senior 104-111 Embedding ESG in Our All the senior management of
management hired from the Corporate DNA the company are hired from the
local community local community
Indirect economic impacts
GRI 3: Material 3-3 Management of material 42-43 Focusing more on
Topics 2021 topics empowering our pillars
44-46 Prioritizing what matters

Annual Report 2024 141

GRI Standard/ Page Explanation
Disclosure Location
Other Source Number

GRI 203: Indirect 203-1 Infrastructure 28-31 Driving Consistent Results

Economic investments and services Year after Year
Impacts 2016 supported
114-116 CSR Initiatives: Making a
Sustainable Difference

203-2 Significant indirect 28-31 Driving Consistent Results

economic impacts Year after Year
114-116 CSR Initiatives: Making a
Sustainable Difference

Procurement
practices

GRI 3: Material 3-3 Management of material 78-81 Sourcing with care

Topics 2021 topics

GRI 204: 204-1 Proportion of spending 78-81 Sourcing with care

Procurement on local suppliers
Practices 2016

Anti-corruption

GRI 3: Material 3-3 Management of material 104-111 Embedding ESG in Our

Topics 2021 topics Corporate DNA
84-92 Future-Ready Workforce
Shaping our Future

GRI 205: Anti- 205-1 Operations assessed for 104-111 Embedding ESG in Our
corruption 2016 risks related to corruption Corporate DNA

205-2 Communication and 104-111 Embedding ESG in Our

training about anti-corruption Corporate DNA
policies and procedures

205-3 Confirmed incidents of 104-111 Embedding ESG in Our

corruption and actions taken Corporate DNA

Anti-competitive behavior

GRI 3: Material 3-3 Management of material 104-111 Whistleblower/Vigil Policy,

Topics 2021 topics Anti-bribery and corruption
policy under Embedding
ESG in Our Corporate DNA

GRI 206: Anti- 206-1 Legal actions for anti- 104-111 Embedding ESG in Our
competitive competitive behavior, anti- Corporate DNA
Behavior 2016 trust, and monopoly practices

Tax

GRI 3: Material 3-3 Management of material 122-125 Sustainable Tax Practice:

Topics 2021 topics Furthering Our ESG
Commitment

142 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

GRI Standard/ Page Explanation

Disclosure Location
Other Source Number
GRI 207: Tax 207-1 Approach to tax 122-125 Sustainable Tax Practice:
2019 Furthering Our ESG
Commitment
207-2 Tax governance, control, 117-121 Risk and Opportunities
and risk management Management

122-125 Sustainable Tax Practice:

Furthering our ESG
commitment
104-111 Vigil mechanism policy
207-3 Stakeholder 117-121 Risk and Opportunities
engagement and management Management
of concerns related to tax
122-125 Sustainable Tax Practice:
Furthering our ESG
commitment
104-111 Vigil mechanism policy
207-4 Country-by-country 122-125 Sustainable Tax Practice: We will report country by
reporting Furthering Our ESG country taxation in next
Commitment sustainability report
Materials
GRI 3: Material 3-3 Management of material 54-55, Committed to a Cleaner,
Topics 2021 topics Greener Tomorrow

66-69 Plastic Waste Management

and Recycling
42-43 Focusing More on
Empowering our Pillars
117-121 Risk and Opportunities
Management
GRI 301: 301-1 Materials used by weight 66-69 Plastic Waste Management
Materials 2016 or volume and Recycling
301-2 Recycled input materials 66-69 Plastic Waste Management
used and Recycling
301-3 Reclaimed products and 66-69 Plastic Waste Management
their packaging materials and Recycling
Energy
GRI 3: Material 3-3 Management of material 54-55, Committed to a Cleaner,
Topics 2021 topics Greener Tomorrow
70-77 Enhancing Energy
Performance
GRI 302: Energy 302-1 Energy consumption 70-77 Enhancing Energy
2016 within the organization Performance
302-2 Energy consumption 70-77 Enhancing Energy
outside of the organization Performance
302-3 Energy intensity 70-77 Enhancing Energy
Performance
302-4 Reduction of energy 70-77 Enhancing Energy
consumption Performance
302-5 Reductions in energy 70-77 Enhancing Energy
requirements of products and Performance
services

Annual Report 2024 143

GRI Standard/ Page Explanation
Disclosure Location
Other Source Number
Water and effluents
GRI 3: Material 3-3 Management of material 54-55 Committed to a Cleaner,
Topics 2021 topics Greener Tomorrow
56-65 Water Conservation
Rejuvenation of Water
Bodies (RWB) - A New
Initiative, Water Bodies:
Impact Assessment

GRI 303: Water 303-1 Interactions with water 56-65 Water Conservation
and Effluents as a shared resource Rejuvenation of Water
2018 Bodies (RWB) - A New
Initiative Water Bodies:
Impact Assessment

303-2 Management of water 56-65 Water Conservation

discharge-related impacts Rejuvenation of Water
Bodies (RWB) - A New
Initiative Water Bodies:
Impact Assessment

303-3 Water withdrawal 56-65 Water Conservation

Rejuvenation of Water
Bodies (RWB) - A New
InitiativeWater Bodies:
Impact Assessment

303-4 Water discharge 56-65 Water Conservation

Rejuvenation of Water
Bodies (RWB) - A New
InitiativeWater Bodies:
Impact Assessment

303-5 Water consumption 56-65 Water Conservation

Rejuvenation of Water
Bodies (RWB) - A New
InitiativeWater Bodies:
Impact Assessment

Biodiversity
GRI 3: Material 3-3 Management of material 54-55 Committed to a Cleaner,
Topics 2021 topics Greener Tomorrow
60-65 Water Bodies: Impact
Assessment

304-3 Habitats protected or 60-65 Water Bodies: Impact

restored Assessment

Emissions
GRI 3: Material 3-3 Management of material 54-55 Committed to a Cleaner,
Topics 2021 topics Greener Tomorrow
72-77 Sustained Climate Action:
Reducing our Carbon
Footprint

144 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

GRI Standard/ Page Explanation

Disclosure Location
Other Source Number
GRI 305: 305-1 Direct (Scope 1) GHG 72-77 Sustained Climate Action:
Emissions 2016 emissions Reducing our Carbon
Footprint
305-2 Energy indirect (Scope 72-77 Sustained Climate Action:
2) GHG emissions Reducing our Carbon
Footprint
305-3 Other indirect (Scope 72-77 Sustained Climate Action:
3) GHG emissions Reducing our Carbon
Footprint
305-4 GHG emissions 72-77 Sustained Climate Action:
intensity Reducing our Carbon
Footprint
305-5 Reduction of GHG 72-77 Sustained Climate Action:
emissions Reducing our Carbon
Footprint
305-6 Emissions of ozone- 72-77 Sustained Climate Action:
depleting substances (ODS) Reducing our Carbon
Footprint
305-7 Nitrogen oxides (NOx), 72-77 Sustained Climate Action:
sulfur oxides (SOx), and other Reducing our Carbon
significant air emissions Footprint
Waste
GRI 3: Material 3-3 Management of material 54-55 Committed to a Cleaner,
Topics 2021 topics Greener Tomorrow

66-69 Plastic Waste Management

and Recycling
GRI 306: Waste 306-1 Waste generation and 66-69 Plastic Waste Management
2020 significant waste-related and Recycling
impacts
306-2 Management of 66-69 Plastic Waste Management
significant waste-related and Recycling
impacts
306-3 Waste generated 66-69 Plastic Waste Management
and Recycling
306-4 Waste diverted from 66-69 Plastic Waste Management
disposal and Recycling
306-5 Waste directed to 66-69 Plastic Waste Management
disposal and Recycling
Supplier environmental assessment
GRI 3: Material 3-3 Management of material 54-55 Committed to a Cleaner,
Topics 2021 topics Greener Tomorrow
78-81 Sourcing with Care
GRI 308: Supplier 308-1 New suppliers that were 78-81 Sourcing with Care All our suppliers are screened
Environmental screened using environmental through a comprehensive
Assessment 2016 criteria certification process suggested
by PepsiCo and we are
committed to sourcing raw
materials as well as packaging
materials only from the
suppliers which are following
sustainable practices.
308-2 Negative environmental 78-81 Sourcing with Care
impacts in the supply chain
and actions taken

Annual Report 2024 145

GRI Standard/ Page Explanation
Disclosure Location
Other Source Number
Employment
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters

84-92 Future-Ready Workforce

Shaping our Future
GRI 401: 401-1 New employee hires and 84-92 Future-Ready Workforce
Employment employee turnover Shaping our Future
2016 401-2 Benefits provided to 84-92 Future-Ready Workforce
full-time employees that are Shaping our Future
not provided to temporary or
part-time employees
401-3 Parental leave 84-92 Future-Ready Workforce
Shaping our Future
Labor/management relations
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters

84-92 Future-Ready Workforce

Shaping our Future
GRI 402: Labor/ 402-1 Minimum notice periods 84-92 Future-Ready Workforce Notice period are provided into
Management regarding operational changes Shaping our Future three categories i.e. 30 days,
Relations 2016 60 days and 90 days as per
the employee grade defined
also notice period related
to corrective bargaining are
included in the agreements
Occupational health and safety
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters

93-96 Employee Health & Safety

GRI 403: 403-1 Occupational health and 93-96 Employee Health & Safety
Occupational safety management system
Health and 403-2 Hazard identification, 93-96 Employee Health & Safety
Safety 2018 risk assessment, and incident
investigation
403-3 Occupational health 93-96 Employee Health & Safety
services
403-4 Worker participation, 93-96 Employee Health & Safety
consultation, and
communication on
occupational health and safety
403-5 Worker training on 93-96 Employee Health & Safety
occupational health and safety
403-6 Promotion of worker 93-96 Employee Health & Safety
health
403-7 Prevention and 93-96 Employee Health & Safety
mitigation of occupational
health and safety impacts
directly linked by business
relationships
403-8 Workers covered by 93-96 Employee Health & Safety
an occupational health and
safety management system
403-9 Work-related injuries 93-96 Employee Health & Safety
403-10 Work-related ill health 93-96 Employee Health & Safety

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GRI Standard/ Page Explanation

Disclosure Location
Other Source Number
Training and education
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters

84-92 Future-Ready Workforce

Shaping our Future
104-111 Embedding ESG in Our
Corporate DNA
GRI 404: Training 404-1 Average hours 84-92 Future-Ready Workforce
and Education of training per year per Shaping our Future
2016 employee
404-2 Programs for upgrading 84-92 Future-Ready Workforce
employee skills and transition Shaping our Future
assistance programs
404-3 Percentage of 84-92 Future-Ready Workforce
employees receiving regular Shaping our Future
performance and career
development reviews
Diversity and equal opportunity
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters

84-92 Future-Ready Workforce

Shaping our Future
104-111 Embedding ESG in Our
Corporate DNA
GRI 405: 405-1 Diversity of governance 84-92 Future-Ready Workforce
Diversity bodies and employees Shaping our Future
and Equal 405-2 Ratio of basic salary 84-92 Future-Ready Workforce
Opportunity 2016 and remuneration of women Shaping our Future
to men
Non-discrimination
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters

84-92 Future-Ready Workforce

Shaping our Future
104-111 Embedding ESG in Our
Corporate DNA
GRI 406: Non- 406-1 Incidents of 84-92 Future-Ready Workforce There is no incident of
discrimination discrimination and corrective Shaping our Future discrimination reported during
2016 actions taken the year
104-111 Embedding ESG in Our
Corporate DNA
Freedom of association and collective bargaining
GRI 3: Material 3-3 Management of material 84-92 Future-Ready Workforce
Topics 2021 topics Shaping our Future
104-111 Embedding ESG in Our
Corporate DNA
GRI 407: 407-1 Operations and 84-92 Future-Ready Workforce
Freedom of suppliers in which the right to Shaping our Future
Association freedom of association and
104-111 Embedding ESG in Our
and Collective collective bargaining may be
Corporate DNA
Bargaining 2016 at risk
78-81 Sourcing with Care

Annual Report 2024 147

GRI Standard/ Page Explanation
Disclosure Location
Other Source Number
Child labor
GRI 3: Material 3-3 Management of material 84-92 Future-Ready Workforce
Topics 2021 topics Shaping our Future
104-111 Embedding ESG in Our
Corporate DNA
78-81 Sourcing with Care
GRI 408: Child 408-1 Operations and 84-92 Future-Ready Workforce There is no incident of child
Labor 2016 suppliers at significant risk for Shaping our Future labor reported during the year
incidents of child labor
104-111 Embedding ESG in Our
Corporate DNA
78-81 Sourcing with Care
Forced or compulsory labor
GRI 3: Material 3-3 Management of material 84-92 Future-Ready Workforce
Topics 2021 topics Shaping our Future
104-111 Embedding ESG in Our
Corporate DNA
78-81 Sourcing with Care
GRI 409: Forced 409-1 Operations and 84-92 Future-Ready Workforce There is no incident of forced
or Compulsory suppliers at significant risk Shaping our Future or compulsory labor reported
Labor 2016 for incidents of forced or during the year
104-111 Embedding ESG in Our
compulsory labor
Corporate DNA
78-81 Sourcing with Care
Security practices
GRI 3: Material 3-3 Management of material 104-111 Embedding ESG in Our
Topics 2021 topics Corporate DNA
GRI 410: Security 410-1 Security personnel 104-111 Embedding ESG in Our
Practices 2016 trained in human rights Corporate DNA
policies or procedures
Rights of indigenous peoples
GRI 411: Rights 411-1 Incidents of violations 84-92 Future-Ready Workforce No such incidents reported
of Indigenous involving rights of indigenous Shaping our Future relating to violations involving
Peoples 2016 peoples the rights of indigenous peoples
during the reporting period.
Local communities
GRI 3: Material 3-3 Management of material
Topics 2021 topics
GRI 413: Local 413-1 Operations with local 84-92 Future-Ready Workforce We give priority to hire the
Communities community engagement, Shaping our Future candidate at all levels from
2016 impact assessments, and the locations of operations
114-116 CSR Initiatives: Making a
development programs to capture local community
Sustainable Difference
talent who are well aware of the
situations of these areas and
can easily get onboarded and
serve the organization.
413-2 Operations with 84-92 Future-Ready Workforce
significant actual and Shaping our Future
potential negative impacts on
114-116 CSR Initiatives: Making a
local communities
Sustainable Difference
Supplier social assessment

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GRI Standard/ Page Explanation

Disclosure Location
Other Source Number
GRI 3: Material 3-3 Management of material 78-81 Sourcing with care
Topics 2021 topics
GRI 414: 414-1 New suppliers that were 78-81 Sourcing with care
Supplier Social screened using social criteria
Assessment 2016 414-2 Negative social impacts 78-81 Sourcing with care
in the supply chain and
actions taken
Public policy
GRI 415: Public 415-1 Political contributions 104-111 Embedding ESG in Our
Policy 2016 Corporate DNA
Customer health and safety
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters
97-98 Augmenting Product Safety
and Quality
99-101 Consumer Health and
Nutrition
GRI 416: 416-1 Assessment of the health 97-98 Augmenting Product Safety
Customer Health and safety impacts of product and Quality
and Safety 2016 and service categories 99-101 Consumer Health and
Nutrition
416-2 Incidents of non- 97-98 Augmenting Product Safety There is no such incident
compliance concerning the and Quality reported during the year
health and safety impacts of 99-101 Consumer Health and
products and services Nutrition
Marketing and labeling
GRI 3: Material 3-3 Management of material 42-43 Focusing More on
Topics 2021 topics Empowering our Pillars
44-47 Prioritizing What Matters
97-98 Augmenting Product Safety
and Quality
99-101 Consumer Health and
Nutrition
GRI 417: 417-1 Requirements for 97-98 Augmenting Product Safety
Marketing and product and service and Quality
Labeling 2016 information and labeling 99-101 Consumer Health and
Nutrition
417-2 Incidents of non- 97-98 Augmenting Product Safety
compliance concerning and Quality
product and service 99-101 Consumer Health and
information and labeling Nutrition
417-3 Incidents of non- 97-98 Augmenting Product Safety
compliance concerning and Quality
marketing communications 99-101 Consumer Health and
Nutrition
Customer privacy
GRI 3: Material 3-3 Management of material 99-101 Consumer Health and
Topics 2021 topics Nutrition
GRI 418: Customer 418-1 Substantiated 99-101 Consumer Health and
Privacy 2016 complaints concerning Nutrition
breaches of customer privacy
and losses of customer data

Annual Report 2024 149

Management Discussion & Analysis Report

Economic Overview & Outlook drinks market. The adoption of sustainable packaging
Indian Economy and the introduction of low-sugar and no-sugar variants
continue to align with evolving consumer preferences,
In 2024, India continued to demonstrate strong
creating a strong foundation for long-term growth.
economic performance, maintaining its position as one
of the world’s fastest-growing major economies. The
Improved infrastructure has enhanced cold storage
International Monetary Fund (IMF) maintained India’s
and distribution capabilities, which are essential for the
GDP growth forecast at 6.5% for both FY2026 and
beverage industry. The increasing deployment of Visi
FY2027, reflecting confidence in the nation’s economic
Coolers in under-penetrated regions has played a key
trajectory. This stable outlook is supported by strong
role in improving product availability and market reach.
private consumption, particularly in rural areas, and
These advancements have facilitated access to chilled
substantial public infrastructure investments.
beverages in emerging markets, driving consumption
Despite global economic challenges, including and positioning the industry to tap into new growth
geopolitical tensions and inflationary pressures, India’s opportunities.
economic outlook remains positive. India is poised to
sustain its growth trajectory, supported by structural Soft Drinks – Key Growth Drivers and
reforms and advancements in technology. While certain Opportunities
sectors face hurdles such as high inflation and slowing
The soft drinks market in India is poised for substantial
consumption, these challenges create opportunities for
growth, driven by several key factors:
policy interventions to stimulate demand and ensure
inclusive growth. The government’s proactive measures Urban Growth and Increasing Spending Power: Rapid
in fiscal policy and infrastructure development are urbanization and a growing middle class have driven
expected to mitigate these issues, fostering a resilient higher consumption of convenience foods and beverages,
and dynamic economic environment. including soft drinks. With higher disposable incomes,
Source: IMF – World Economic Outlook consumers are increasingly spending on-the-go beverage
options, enhancing demand for a diverse range of
Soft Drinks Market Overview & Outlook products. Additionally, growing participation of women
joining the workforce is contributing to higher household
The Indian soft drinks industry navigated a challenging
incomes, further enhancing consumer spending capacity.
landscape in 2024. Despite being a traditionally high-
growth market driven by increasing urbanization, a
Youth Demographic: India’s large young population is
growing middle class, and evolving consumer preferences,
a significant driver of demand for trendy and innovative
demand remained subdued due to unexpected
beverages. Young consumers are more inclined to
weather patterns and weakened consumption trends.
The unseasonal rains in several parts of the country experiment with new flavors, limited-edition variants, and
significantly impacted sales, particularly during the peak international brands, making this demographic critical for
summer months, a critical period for the sector. industry growth.

On the supply side, while the industry displayed resilience Unlocking Growth in Rural India: Rural India presents
with robust distribution networks and innovative product significant opportunities for growth, offering a vast,
launches, the benefits were limited by the macroeconomic untapped market. Strengthening last-mile distribution
environment. Brands attempted to mitigate challenges networks, introducing smaller and more affordable
by offering value-for-money packs, introducing new SKUs, and launching localized marketing campaigns are
flavors, and leveraging digital platforms for marketing. strategies that can drive deeper penetration and unlock
However, these efforts could not fully offset the dip in new growth avenues. Additionally, expanding chilling
overall volumes. infrastructure, such as Visi Coolers, to underserved
locations remains crucial. Improved access to cold
Looking ahead, the industry remains cautiously optimistic. storage ensures better availability of chilled beverages,
The upcoming summer season, coupled with strategic enabling brands to cater effectively to consumer
marketing campaigns and an expanding portfolio of demand in rural and remote areas while driving
products, is expected to drive growth in the Indian soft consistent growth.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Location: India’s diverse climatic conditions, with a that spans over three decades since PepsiCo’s entry into
significant portion of the population living in regions the Indian market. The Company accounts for more than
characterized by hot, dry, or moderate weather, create 90% of PepsiCo’s sales volumes in India, highlighting
a natural demand for refreshing beverages. The rising the significance of this collaboration. Leveraging an
temperatures and prolonged summer seasons in many extensive manufacturing infrastructure and a well-
parts of the country are expected to drive higher established distribution network, VBL produces, markets,
consumption of soft drinks. and distributes a diverse range of PepsiCo products,
including carbonated soft drinks, carbonated juice-based
Innovative Products: Indian market has a large young beverages, juice-based beverages, energy drinks, sports
population that has been driving the demand for new drinks, and packaged drinking water.
and unique flavors. To meet this trend, the industry is
continuously focusing on expanding its product offerings The portfolio of PepsiCo CSD brands produced and sold
and introducing innovative options, such as new and by VBL include Pepsi, Pepsi Zero, Mountain Dew, Sting,
creative flavors and packaging solutions. Seven-Up, Mirinda, Seven-Up Nimbooz Masala Soda
and Evervess. PepsiCo NCB brands produced and sold
Health Trends Shaping Demand: The growing focus by the Company include Slice, Tropicana Juices (100%
on health is driving demand for low-sugar, zero-calorie, and Delight), Seven-Up Nimbooz, Gatorade as well as
and functional beverages enriched with vitamins and packaged drinking water under the brand Aquafina.
probiotics. Brands are innovating with organic and
natural ingredient-based drinks to cater to these evolving The Company has built a strong sales team that
consumer preferences. collaborate closely with PepsiCo on local advertising
and marketing campaigns. Additionally, the Company
Business Overview – A Key Player in the
has also been granted franchise rights for several
Beverage Industry
PepsiCo products in India’s 26 States and 6 Union
VBL’s Presence
Territories, as well as Nepal, Sri Lanka, Morocco, Zambia,
Varun Beverages Limited (“VBL” or the “Company”) is a Zimbabwe, South Africa, Lesotho, Eswatini & DRC and
key player in India’s beverage industry and the second distribution rights for Namibia, Botswana, Mozambique
largest franchisee of PepsiCo in the world (outside US) with and Madagascar.
operations spanning across 10 countries with franchise
rights and additional 4 countries with distribution rights. The partnership has expanded into new avenues with the
India is the largest market and contributed ~72% of growing snacks business, further strengthening VBL’s
revenues from operations (net) in Fiscal 2024. role within PepsiCo’s ecosystem. The exclusive rights to
manufacture and distribute PepsiCo snack brands, such
Symbiotic Relationship with PepsiCo as Cheetos in Morocco, Zimbabwe, and Zambia, mark a
VBL continues to enjoy a longstanding, collaborative, and significant step in enriching VBL’s portfolio and leveraging
highly synergistic partnership with PepsiCo, a relationship synergies with its existing infrastructure.

Demand Delivery Demand Creation

Production Facilities Trademarks

Sales & Distribution - GTM & Formulations through
Logistics Concentrate
In-outlet Management - Product & Packaging
Visi-Coolers innovation through
Consumer Push investment in R&D
Management (BTL) - Consumer Pull
Market Share Gains Management (ATL) -
Brand Development

Annual Report 2024 151

Business Model To enhance operational excellence, VBL has implemented
The Company manufactures and distributes a wide backward integration initiatives and centralized raw
range of carbonated soft drinks (“CSD”), as well as a material sourcing. The Company has established in-house
large selection of non-carbonated beverages (“NCB”), production facilities for preforms, crowns, plastic closures,
including packaged drinking water. With its end-to-end corrugated boxes, corrugated pads, plastic crates, and
execution capabilities, VBL oversees every aspect of shrink-wrap films. These initiatives ensure consistent
the value chain – from manufacturing and distribution quality standards, operational efficiency, and cost
to warehousing, customer management, cash flow optimization, further strengthening VBL’s competitive
optimization, and driving future growth. PepsiCo provides edge in the beverage industry.
brands, concentrates, and marketing support, while VBL Key Business Developments – 2024
manages manufacturing, supply chain processes, and
Acquisition of South Africa and neighboring territories:
capital allocation strategies, ensuring market share gains
and cost efficiencies. 
On March 26, 2024, VBL consummated the
acquisition of The Beverage Company Proprietary
VBL’s extensive experience in the beverage industry
Limited, South Africa along with its wholly-owned
includes navigating the complexities of logistics
subsidiaries (“BevCo”). Accordingly, Bevco became
and packaging across diverse territories. While the
the subsidiary of the Company
operational framework remains consistent across
markets, each region presents unique challenges such as This acquisition allowed the Company to consolidate
electricity reliability, refrigeration, logistics infrastructure, its presence in franchised territories in South
demographic diversity, and socioeconomic conditions. Africa, Lesotho, and Eswatini, as well as territories
VBL addresses these challenges with tailored strategies with distribution rights in Namibia, Botswana,
to ensure operational efficiency and responsiveness. Mozambique, and Madagascar

Acquisition of Tanzania and Ghana territories:

The Company’s well-established distribution network
spans urban, semi-urban, and rural markets, enabling On November 13, 2024, your Company entered into
it to meet the demands of a wide consumer base. share purchase agreements with Tanzania Bottling
Strategically located distribution centers maximize Company SA and Ghana Bottling Company Limited
market penetration across licensed territories in India and to acquire 100% share capital of SBC Tanzania Limited
international markets. VBL’s solid production capabilities and SBC Beverages Ghana Limited respectively,
and distribution network enable it to effectively respond subject to regulatory and other approvals, including
to competitive pressures, market demand and evolving but not limited to PepsiCo Inc. at an Equity value of
consumer preferences across targeted territories. ~ USD 154.50 Million for Tanzania and ~ USD 15.06
Million for Ghana
As of December 31, 2024, the Company has 48 state-
Exclusive Snacks Franchising Appointment with
of-the-art manufacturing facilities (36 in India & 12 in
PepsiCo for Morocco, Zimbabwe and Zambia:
international territories). Further, it has a robust supply
chain with 130+ depots, 2,600+ owned vehicles, 2,800+ 
Varun Beverages Morocco SA (a wholly-owned
primary distributors and presently installed 1.15 Million+ subsidiary of the Company) entered into an Exclusive
visi-coolers across various markets. These assets ensure Snacks Appointment Agreement to manufacture and
seamless product availability and enhanced market reach, package Cheetos in the territory of Morocco. This
particularly in under-penetrated regions. appointment is in addition to the existing distribution
agreement for PepsiCo’s snacks portfolio consisting
Over the years, VBL has grown its operations through of Lays, Cheetos, Doritos in the territory of Morocco
both organic and inorganic expansions. Inorganic growth
Varun Zimbabwe and Varun Zambia (subsidiaries
has been achieved through the acquisition of additional
of the Company) entered into an Exclusive Snacks
territories directly from PepsiCo as well as previously
Franchising Appointment with Premier Nutrition
franchised territories. Supported by a dedicated and
Trading LLC, Dubai (subsidiary of PepsiCo Inc.) to
skilled sales team, the Company remains focused on
manufacture, distribute, and sell “Simba Munchiez”
driving growth and increasing market share across
in the territory of Zimbabwe & Zambia
categories within its licensed territories. VBL employs a
range of customer-focused strategies, including localized Distribution in Zimbabwe and Zambia has started
promotions, in-store activations, customer relationship w.e.f. February 1, 2025. Manufacturing facilities are
management, merchandising, personalized account expected to be operational for Morocco on or before
management, and identifying high-demand areas for the May 1, 2025, Zimbabwe on or before October 1, 2025
strategic placement of vending machines and visi-coolers. and for Zambia on or before April 1, 2026

152 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Commencement of Commercial Production at Dividend:

4 Greenfield facilities: 
The Company’s Board of Directors formalized
For CY 2024 season, the Company commissioned 3 a dividend strategy in line with good corporate
new greenfield production facilities with backward governance practices with the Company’s listing in
integration in India at Supa, Maharashtra; Gorakhpur, November 2016.
Uttar Pradesh; and Khordha, Odisha and 1 new
greenfield production facility in Kinshasa, Democratic Salient Features –
Republic of Congo Endeavor to maintain a dividend payout in the range
of 10-30% of annual profit after tax on standalone

Further, VBL set up and expanded backward financials.
integration facilities at the Guwahati plant in India, as
well as at plants in Morocco, Zambia, and Zimbabwe Consider financial parameters like earnings outlook,
in international regions future capex requirements, organic growth plans,
capital restructuring, debt reduction, cash flows, etc.
Qualified Institutions Placement (QIP) Issue:
The Company raised ~ ` 75,000 Million through fresh Consider external parameters like macro-economic
issue of 132,743,362 equity shares environment, regulatory changes, technological
changes, statutory and contractual restrictions, etc.

The utilization of QIP proceeds (net of issue
expenses) is primarily towards repayment of debt as

For a detailed perspective, please refer to the
well as acquisitions Company’s website at www.varunbeverages.com/

Sub-division/split of existing equity shares of the Furing the year under review, the Board of Directors
Company: in their meeting held on July 30, 2024 declared an

The Company on September 12, 2024 (“Record interim dividend of ` 1.25 per Equity Share (face
Date”), sub-divided/split of existing Equity Shares of value of ` 5/- per Equity Share) to the eligible equity
the Company from 1 (one) equity share having face shareholders of the Company. Further, the Board of
value of ` 5 each, fully paid-up, into such number Directors have also recommended a final dividend
of equity shares having face value of ` 2 each fully of ` 0.50 per Equity Share (face value of ` 2/- per
paid-up Equity Share) for the Current Year 2024.

Financial Summary
P&L

Particulars (` in Million) 31-Dec-24 31-Dec-23 YoY (%)

1. Income
(a) Revenue from operations 204,813.28 163,210.63 25.5%
(b) Excise Duty 4,736.78 2,784.82 70.1%
Net Revenues 200,076.50 160,425.81 24.7%
(c) Other income 1,212.68 793.59 52.8%
2. Expenses
(a) Cost of materials consumed 82,937.43 70,264.61 18.0%
(b) Purchase of stock-in-trade 6,859.21 4,626.96 48.2%
(c) Changes in inventories of FG, WIP and stock-in-trade (749.40) (842.69) 11.1%
(d) Employee benefits expense 18,850.26 14,465.87 30.3%
(e) Finance costs 4,503.86 2,680.99 68.0%
(f) Depreciation, amortization and impairment expense 9,473.86 6,809.06 39.1%
(g) Other expenses 45,068.29 35,816.21 25.8%
Total expenses 166,943.51 133,821.01 24.8%

Annual Report 2024 153

Particulars (` in Million) 31-Dec-24 31-Dec-23 YoY (%)

EBITDA 47,110.71 36,094.85 30.5%

3. Profit before share of loss of associate and joint venture (1-2) 34,345.67 27,398.39 25.4%

4. Share of loss of associate and joint venture (14.78) (4.79) -208.6%

5. Profit before tax (3+4) 34,330.89 27,393.60 25.3%

6. Tax expense 7,988.04 6,375.47 25.3%

7. Net profit after tax (5-6) 26,342.85 21,018.13 25.3%

Balance Sheet
Particulars (` in Million) 31-Dec-24 31-Dec-23 Particulars (` in Million) 31-Dec-24 31-Dec-23
Equity and liabilities Assets
Equity Non-current assets
(a) Equity share capital 6,763.02 6,496.07 (a) Property, plant and equipment 106,225.51 68,031.32
(b) Other equity 159,335.27 62,868.91 (b) Capital work in progress 11,623.43 19,222.22
(c) Non-controlling interest 1,298.07 1,481.55 (c) Right of Use of Assets 13,631.22 10,347.07

Total equity 167,396.36 70,846.53 (d) Goodwill 3,009.37 242.30

Liabilities (e) Other intangible assets 11,151.26 5,471.00

Non-current liabilities (f) Intangible assets under

43.69 -
development
(a) Financial liabilities
(g) Investment in associates
i. Borrowings 8,406.89 31,889.38 534.47 179.32
and Joint Venture
ii. Other financial liabilities 3,570.86 1,978.85
(h) Financial assets 1,266.68 654.18
(b) Provisions 1,894.34 2,126.44
(i) Deferred Tax Assets (Net) 196.31 -
(c) Deferred tax liabilities (Net) 4,879.09 3,430.11
(j) Other non-current assets 5,117.42 5,368.12
(d) Other non-current liabilities 47.31 68.40
Total non-current assets 152,799.36 109,515.53
Total non-current liabilities 18,798.49 39,493.18
Current assets
Current liabilities
(a) Inventories 27,912.34 21,505.33
(a) Financial liabilities
(b) Financial assets
i. Borrowings 15,235.76 20,054.49
i. Trade receivables 8,458.42 3,593.85
ia. Lease liabilities 1,049.03 390.38
ii. Cash and cash equivalents 22,662.83 2,422.12
ii. Trade payables 15,604.27 7,582.48

iii. Other financial liabilities 7,043.41 7,638.39 iii. Other bank balances 1,837.71 2,176.50

(b) Other current liabilities 4,916.55 4,650.93 iv. Others 8,356.16 7,388.23

(c) Provisions 739.00 825.43 (c) Current tax assets (Net) 48.72 3.11

(d) Current tax liability (Net) 656.23 390.02 (d) Other current assets 9,363.56 5,267.16

Total current liabilities 45,244.25 41,532.12 Total current assets 78,639.74 42,356.30

Total liabilities 64,042.74 81.025.30

Total equity and liabilities 231,439.10 151,871.83 Total assets 231,439.10 151,871.83

154 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Sales Volume
Total Sales Volumes (Mn Cases*)
821
737
653

454
404
337 303

149 176
89 88 115

2019 2020 2021 2022 2023 2024

CAGR (2019-2024) ~17.9% India International

*A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each

Varun Beverages reports its financials on a calendar yearly of the Congo (DRC). PAT saw a notable increase of 25.3%,
basis. Given that the soft drinks business is in season, with reaching ` 26,342.8 Million in CY 2024, compared to
the bulk of sales occurring during the summer season, it ` 21,018.1 Million in CY 2023, driven by volume growth and
is best to track the Company’s performance on an annual improved margins.
basis. Revenues and profits follow a bell-curve with a
significant portion accruing in the April-June quarter. As of the end of CY 2024, the company’s net capital
expenditure stood at approximately ` 45,000 Million,
In CY 2024, VBL delivered a robust performance, driven by
with ` 24,000 Million spent in CY 2023. Of the total capex,
a combination of organic volume expansion, an improved
` 32,000 Million was allocated for the establishment
product mix, and contributions from recent acquisitions.
Consolidated sales volume increased by 23.2%, while the of four greenfield production facilities, distributed as
net realization per case rose by 1.3%, leading to revenue follows: Supa (Maharashtra) ~` 10,000 Million, Gorakhpur
growth of 24.7% and PAT growth of 25.3%. (Uttar Pradesh) ~` 11,000 Million, Khordha (Odisha)
~` 5,000 Million, and DRC ~` 6,000 Million. An additional
Net revenue from operations reached ` 200,076.5 Million
` 8,000 Million was invested in international markets,
in CY 2024, surpassing ` 160,425.8 Million recorded
including backward integration. The remaining capex
in CY 2023. Total sales volumes for CY 2024 stood at
was for future years, including visi-coolers, glass bottles,
1,124.4 Million cases, up from 912.9 Million cases in the
previous year. The company registered double-digit pallets, vehicles, etc.
growth in both Indian and international operations, with Investments made over the past two years have
India growing by 11.4% and consolidated volumes rising by significantly expanded production capacity in India, the
23.2%. However, organic volume growth in international
annual production capacity in India increased during the
markets stood at 6.3%, impacted by the transition to a
season of CY 2024 by ~45% over the capacity of season
zero-sugar portfolio following the implementation of a
CY 2022. This expansion strengthens the company’s
sugar tax in Zimbabwe. In CY 2024, CSD accounted for
74.2% of total sales volumes, JBD at 6.2%, and Packaged ability to meet growing demand and drive future growth.
Drinking Water at 19.6%. Realization per case increased As of December 31, 2024, capital work-in-progress
by 1.3% to ` 177.9 for the year. (CWIP) and capital advances stood at approximately
During the fiscal year, gross margins improved by ` 16,500 Million, primarily for new greenfield facilities in
165 basis points to 55.5%, compared to 53.8% in the Prayagraj, Damtal, Buxar, and Meghalaya. An estimated
previous year. This expansion was primarily driven by ` 16,000 Million in additional capital expenditure is
the strategic procurement and storage of PET chips to required, with the balance earmarked for the following
avail price benefits, along with efforts to reduce sugar year. This includes investments in the snacks segment in
content and increased backward integration. As a result, international markets and brownfield expansions in India
EBITDA increased by 30.5% to ` 47,110.7 Million, with (Sricity), rPET facilities in India and expansion in DRC.
EBITDA margins improving by 105 basis points to 23.5%
in CY 2024. However, this was partially offset by the During the year, VBL became net debt-free following the
consolidation of the South African market and the fixed repayment of loans using proceeds from the QIP issue.
costs associated with new capital expenditures, which While the company’s financial position has strengthened,
are yet to be fully utilized. efforts to enhance operational efficiencies remain
Depreciation recorded a 39.1% increase in CY 2024, ongoing. Despite inorganic expansion into new markets,
while finance costs rose by 68.0%, primarily due to the including South Africa and DRC, working capital days
acquisition of BevCo and the establishment of four new improved to approximately 31 days as of December 31,
production facilities in India and the Democratic Republic 2024, compared to 34 days in the previous year.

Annual Report 2024 155

Growth Outlook

Volume Acquisitions Strengthen Operating Diversified

Gains Balance Sheet Leverage Portfolio
Well-positioned Penetrate newer Repayment of Contiguous To periodically
to leverage geographies. debt through territories/ launch innovative
PepsiCo brand to strong cash markets offer products in select
Identify strategic
increase market generation better operating markets in line
consolidation
penetration leverage and with changing
opportunities To enable
in licensed asset utilization consumer
in South Asia / significant
territories. - economies of preferences.
Africa interest cost
scale.
Consolidating savings Focus on non-
existing Production cola carbonated
distributors and logistics beverages and
and increasing optimization NCB’s.
distribution in Packaging Bottled water
underpenetrated synchronization provides
regions and innovations significant growth
Technology use opportunity.
to improve sales
and operations
processes.

VBL is well-positioned to sustain its growth trajectory, provides the Company with new opportunities to
driven by its comprehensive business model, robust drive long-term growth and solidify its position in key
operational infrastructure, and strategic alignment international markets.
with PepsiCo. The Company’s end-to-end execution
capabilities, from manufacturing to distribution, ensure In India, VBL is well-placed to leverage favorable
seamless operations across diverse and complex markets. demographic trends and the growing spending power of its
VBL continues to enhance its portfolio with innovative expanding middle class. Investments in infrastructure, such
product offerings and localized strategies, enabling it as Visi Coolers in under-penetrated rural regions, enhance
to address evolving consumer preferences and capture the Company’s ability to reach a broader consumer base
emerging demand across its licensed territories. and ensure consistent product availability. Additionally,
VBL’s focus on backward integration, centralized sourcing,
The Company’s recent expansion into international and sustainability initiatives ensures operational excellence
markets, including the integration of The The Beverage and cost efficiencies. Complemented by the growing
Company Proprietary Limited (BevCo) in South Africa snacks business under exclusive PepsiCo partnerships,
and acquisitions in Tanzania and Ghana, has further VBL is poised to deliver sustainable value to stakeholders
strengthened its global footprint. These developments and capitalize on growth opportunities in both domestic
underscore VBL’s commitment to broadening its and international markets.
footprint and the expansion into African territories

Threats, Risks, and Concerns

The risks and opportunities inherent to all corporations are monitored and reviewed under the guidance of Audit,
inseparable elements. The directors and management of Risk Management and Ethics Committee. The Committee
the Company make constructive decisions to protect the convenes periodically to identify processes exposed to
interests of stakeholders. The Company has implemented risks, determine risk mitigation strategies, and oversee
a Risk Management Policy which is continuously their implementation.

156 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Risk Description Mitigation

1. Demand Risk A cyclical downturn can Over the years, the Company has demonstrated its ability to drive
result in a slowdown in the significant growth in sales volumes by focusing on delivering
Company’s target markets, the right brand, the right price, the right product, and the right
affecting its sales velocity. channel. Additionally, the business operates in relatively under-
penetrated markets with favorable demographics, climatic
conditions and a growing population, indicating steady demand
growth. Further, its wide range of product portfolio enables it to
cater to diverse consumer segments.

2. Business Agreement The Company relies on Over the past thirty years, the Company has nurtured a strong
Risk strategic relationships and partnership with PepsiCo, expanding market ties by venturing
agreements with PepsiCo. into new territories and sub-territories. This partnership
Termination of agreements involves an expanded production and distribution of a wider
or less favorable renewal array of PepsiCo beverages, integrating multiple SKUs into
terms could adversely our portfolio, and broadening our distribution network. The
affect profitability. business has demonstrated its effectiveness in significantly
boosting PepsiCo’s market share, establishing itself as a
reliable partner. The collaborative relationship is symbiotic,
with both entities actively engaged as development partners.
Together, they invest in joint projects and business planning,
with a primary focus on strategic issues. Notably, the bottling
appointment and trademark license agreement for India with
PepsiCo India, initially set to expire on October 2, 2022, has
been extended until April 30, 2039, further strengthening this
enduring partnership.

3. Regulatory Risk Regulations regarding The Company proactively works with PepsiCo, the
consumer health and the Government and the regulatory authorities to ensure that
risk of the Company’s the facts are clearly understood and that its products are not
products being signed out unfairly targeted. VBL adheres to sustainable manufacturing
for discriminatory tax and practices and emphasizes on environmental issues related to
packaging waste recovery packaging waste recovery / recycling, water management
may adversely impact and greenhouse gas emissions. It consistently engages with
business. stakeholders to develop sustainability solutions that prioritize
environmental protection, including partnerships with NGOs
and the communities in which it operates. PepsiCo’s strategy
of introducing healthier and zero sugar variant products also
bodes well for the Company’s future. The Company has initiated
various sustainability initiatives such as the engagement of
GEM Enviro Management Ltd. for phased implementation
of 100% recycling of used PET bottles and partnering with
Deutsch Quality Systems (India) Private Limited for water
footprint assurance and, for measurement and improvement of
Company’s carbon footprint.

4. Business Viability The inability to integrate VBL’s transparent strategy and financial planning ensure
Risk the operations or leverage that any future acquisitions or collaborations are not only
potential operating and valuable but also align with the Board’s acquisition guidelines.
cost efficiencies from the The company dedicates substantial management time and
newly acquired territories financial resources to secure the success of newly acquired
and sub-territories may endeavors. This includes developing local market strategies,
adversely affect the addressing potential cultural and language barriers, and
Company’s business integrating business practices to ensure the overall viability
and future financial of the business.
performance.

Annual Report 2024 157

Risk Description Mitigation

5. Consumer Failure to adapt to To stay relevant, VBL’s sales team works closely with PepsiCo
Preference Risk changing consumer to evaluate evolving consumer habits and consistently focuses
health trends and address on product innovation and expanding the product range.
misconceptions about Furthermore, PepsiCo’s new product plan places greater
the health effects of soft emphasis on healthier products with zero / limited calorie and
drink consumption may sugar content.
adversely affect demand.

6. Raw Material Risk An interruption in the An integral part of VBL’s strategy is to maximize cost efficiencies,
supply or significant the active reduction of cost of goods sold, minimizing
increase in the price of raw operating expenses and increasing cash flows. To achieve these
materials or packaging objectives, the business has undertaken significant programs,
materials may adversely including backward integration and consolidated sourcing of
affect the Company’s materials. Leveraging its scale of operations, VBL negotiates
business prospects, results with suppliers to enhance bargaining power, resulting in
of operations and financial improved working capital management. The Company is
condition. dedicated to optimizing its assets to achieve higher operating
efficiency and to amortize overheads costs across a wider
case range. Additionally, VBL continues to invest in innovative
solutions to enhance operational efficiencies and streamline
work processes. These efforts include, ensuring consolidated
operational data from production, scheduled sourcing, and
superior monitoring of the supply of goods from manufacturers
to the retail point of sale.

Human Resources Risk Management, Audit and Internal Control

As of December 31, 2024, VBL employed over System
16,000 full-time team members worldwide, with The Company has established robust and efficient internal
more than 11,000 based in India and over 5,000 control systems tailored to the scale of its operations and
across its international subsidiaries. Aligned with its the complexities of the market it serves. These stringent
overarching business strategy, the Company places a and comprehensive controls ensure optimal utilization of
strong emphasis on nurturing talent as a key driver of resources, safeguarding the Company’s assets and interests.
future growth and success. VBL prioritizes employee They also ensure that transactions are properly authorized,
development through extensive training programs, recorded, and reported, with reliable checks and balances
skill enhancement initiatives, and opportunities for to maintain the consistency and accuracy of accounting
career progression across all levels and functions. data. The Audit, Risk Management and Ethics Committee
The Company also collaborates with PepsiCo on oversees a thorough system of internal audits and periodic
management and staff development programs, assessments to ensure adherence to best practices. The
ensuring key employees benefit from global best Company has appointed M/s J.C. Bhalla & Co, Chartered
practices while engaging in skill-building initiatives Accountants, and M/s O.P. Bagla & Co LLP, Chartered
within India’s leading training frameworks. Accountants, as Joint Statutory Auditors to oversee and
report on the financial controls of the Company.

158 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Board’s Report

Dear Members,

Your Directors have pleasure in presenting the 30th (Thirtieth) Annual Report on the business and operations of your
Company along with the Audited Financial Statements for the Financial Year ended December 31, 2024.

Financial Performance
The financial performance of your Company for the Financial Year ended December 31, 2024 is summarized below:
(` in Million)
Particulars Standalone Consolidated
Financial Financial Financial Financial
Year ended Year ended Year ended Year ended
December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023
Total Revenue 147,025.35 127,789.68 206,025.96 164,004.22
Total Expenses 116,325.96 104,108.05 171,680.29 136,605.83
Profit before tax after 30,699.39 23,681.63 34,330.89 27,393.60
exceptional items
Less: Tax Expenses 7,495.75 5,930.37 7,988.04 6,375.47
Profit after tax 23,203.64 17,751.26 25,946.33* 20,559.22*
Balance brought forward 64,261.97 25,101.68 62,868.91 27,398.84
from last year
Balance carried over to 60,721.86 40,558.71 68,582.05 45,663.50
Balance Sheet
General Reserve 444.26 444.26 444.26 444.26
Other Reserves 97,657.91 23,259.02 90,308.95 16,761.15
Reserves & Surplus carried 158,824.03 64,261.97 159,335.27 62,868.91
to Balance Sheet

*After adjustment on account of non-controlling interest.

Consolidated Financial Statements International Geographies) with more than 2,600 owned
The Consolidated Financial Statements of your Company vehicles, more than 2,800 primary distributors and more
for the Financial Year 2024 are prepared in compliance than 130 depots. The Company continues to create long-
with the applicable provisions of the Companies Act, term value through different facets of its business and
2013 (‘the Act’), Indian Accounting Standards (‘Ind AS’) improve its presence, product mix and utilisation levels.
and the Securities and Exchange Board of India (Listing With an increasing penetration on the back of a robust
Obligations and Disclosure Requirements) Regulations, distribution network and diversifying product portfolio,
2015 [‘SEBI (LODR) Regulations’] which shall also be the Company has created a sustainable operating
provided to the Members in their forthcoming Annual efficiency at its manufacturing facilities.
General Meeting (‘AGM’).
Key Developments
State of the Company’s Affairs
On March 26, 2024, your Company consummated the
Your Company has presence in 26 States and 6 Union
acquisition of The Beverage Company Proprietary Limited,
Territories in India as well as in 9 other countries
South Africa along-with its wholly-owned subsidiaries
through franchise rights (viz. Nepal, Sri Lanka, Morocco,
Zambia, Zimbabwe, Democratic Republic of Congo, (‘BevCo’). Accordingly, Bevco became the subsidiary of
South Africa, Lesotho & Eswatini). Additionally, the the Company. This acquisition allowed the Company to
Company holds distribution rights in 4 countries (viz. consolidate its presence in franchised territories in South
Namibia, Botswana, Mozambique and Madagascar). Africa, Lesotho, and Eswatini, as well as territories with
As of December 31, 2024, the Company has 48 state- distribution rights in Namibia, Botswana, Mozambique,
of-the-art manufacturing facilities (36 in India and 12 in and Madagascar.

Annual Report 2024 159

On November 13, 2024, your Company entered into share recommended a final dividend of ` 0.50 per Equity Share
purchase agreements with Tanzania Bottling Company (face value of ` 2/- per Equity Share) for the Financial
SA and Ghana Bottling Company Limited to acquire 100% Year 2024. Total cash outflow for dividend payout would
share capital of SBC Tanzania Limited and SBC Beverages be ~` 3,315.06 million for the Financial Year 2024.
Ghana Limited respectively, subject to regulatory and
other approvals, including but not limited to PepsiCo Inc. Your Company has transferred the unpaid/unclaimed
dividend (interim and final) to the Unclaimed Dividend
Varun Beverages Morocco SA (a wholly owned subsidiary Accounts of the respective financial years and the details
of the Company) entered into an Exclusive Snacks of the same are uploaded on website of the Company at
Appointment Agreement to manufacture and package https://varunbeverages.com/corporate-governance/
Cheetos in the territory of Morocco. This appointment
is in addition to the existing distribution agreement for Investor Education and Protection Fund
PepsiCo’s snacks portfolio consisting of Lays, Cheetos, Pursuant to the provisions of Section 124 of the Act,
Doritos in the territory of Morocco. Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016
Varun Foods (Zimbabwe) (Private) Limited and Varun (‘IEPF Rules’) read with relevant circulars and amendments
Beverages (Zambia) Limited (subsidiaries of the thereto, amount of dividend which remains unpaid/
Company) entered into an Exclusive Snacks Franchising unclaimed for a period of seven years from the date of
Appointment with Premier Nutrition Trading LLC, Dubai transfer to the Company’s unpaid dividend account and
(subsidiary of PepsiCo Inc.) to manufacture, distribute, corresponding shares on which the dividend remains
and sell ‘Simba Munchiez’ in the territory of Zimbabwe unclaimed for seven consecutive years or more are required
& Zambia. to be transferred to the Investor Education and Protection
Fund (‘IEPF’) constituted by the Central Government.
Deposits Accordingly, your Company had transferred ` 45,375/- to
Your Company has not accepted any deposits during the IEPF (being unpaid/unclaimed interim dividend amount
year under review falling within the ambit of Section 73 for FY 2017) and also transferred 299 equity shares
of the Act and the Companies (Acceptance of Deposits) (on which interim dividend for FY 2017 remained unpaid/
Rules, 2014. unclaimed for seven consecutive years) to the designated
demat account of IEPF Authority and the same can be
Transfer to General Reserve claimed from IEPF Authority only after complying with
Your Company has not transferred any amount to General prescribed procedure under IEPF Rules.
Reserve for the Financial Year 2024.
Acquisition Guidelines
Change in the Nature of Business, if any Your Company applies stringent strategic and financial
During the year under review, there was no change in the criteria to any potential acquisition or partnership and
nature of business of the Company. to enhance transparency, the Board of Directors of
the Company have approved and adopted Acquisition
Dividend Distribution Policy Guidelines for Company’s M&A activities for viable
The Board of Directors of the Company in their meeting acquisitions and the same is uploaded on website of the
held on August 9, 2017 approved and adopted a Policy on Company at https://varunbeverages.com/wp-content/
Distribution of Dividend to comply with Regulation 43A uploads/2023/03/9-VBL-Guidelines-for-Acquisition-in-
of SEBI (LODR) Regulations and the same is uploaded on India.pdf
website of the Company at https://www.varunbeverages.
com/wp-content/uploads/2023/03/ 10-Dividend- Sub-Division/Split of Equity Shares
Distribution-Policy.pdf During the year under review, pursuant to the approval
of Members through Postal Ballot on August 30, 2024,
Dividend the Issued, Subscribed and Paid-up Equity Share Capital
During the year under review, the Board of Directors in existing on the Record Date (i.e. September 12, 2024) was
their meeting held on July 30, 2024 declared an interim sub-divided/split such that each Equity Share having face
dividend of ` 1.25 per Equity Share (face value of ` 5/- value of ` 5/- each fully paid-up, was sub-divided/split
per Equity Share) to the eligible equity shareholders of into such number of Equity Shares having face value of
the Company. Further, the Board of Directors have also ` 2/- each fully paid-up.

160 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Qualified Institutions Placement (QIP) 132,743,362 Equity Shares of face value of ` 2/- each to
During the year under review, in compliance with the the eligible Qualified Institutional Buyers at an issue price
provisions of SEBI (Issue of Capital and Disclosure of ` 565/- per Equity Share i.e. at a premium of ` 563/- per
Requirements) Regulations, 2018, SEBI (LODR) Equity Share aggregating to ` 7,500 crore. Brief summary
Regulations and Sections 42 & 62 of the Act and Rules of utilization of funds are as follows:
made thereunder, your Company has issued and allotted

S. Particulars Amount as Amount Utilized

No. per Placement as on 31.12.2024
Document (` in crore)
(` in crore)
1. Repayment/ Prepayment, in part or in full of certain outstanding 5,600.00 5,047.55
borrowings availed by the company and /or one of its subsidiaries
2. For general corporate purposes and inorganic acquisitions 1,839.00 385.85
3. QIP Issue Expense 61.00 61.11*
Total 7,500.00 5,494.50
*incremental amount utilized through general corporate purposes allocated funds.

Share Capital Shares of face value of ` 2/- each pursuant to Qualified

Pursuant to the approval of Members through Postal Institutions Placement.
Ballot on August 30, 2024, the Authorized Share
Capital of the Company stood sub-divided/ split from
Employees Stock Option Scheme
` 10,000,000,000/- (Rupees Ten Billion only) divided into Your Company has Employees Stock Option Scheme 2016
2,000,000,000 (Two Billion) Equity Shares of face value (‘ESOP Scheme 2016’) i.e. in compliance with SEBI (Share
of ` 5/- (Rupees Five only) each to ` 10,000,000,000/- Based Employee Benefits and Sweat Equity) Regulations,
(Rupees Ten Billion only) divided into 5,000,000,000 2021, as amended from time to time (‘SEBI ESOP
(Five Billion) Equity Shares of face value of ` 2/- (Rupees Regulations’) and there has been no material change to
Two only) each. the ESOP Scheme 2016 during the year under review.
Consequent to sub-division/split of Equity Shares, all the
During the year under review, the Issued, Subscribed options granted under the ESOP Scheme 2016 have been
and Paid-up Equity Share Capital of your Company was adjusted for sub-divided/split shares.
increased/changed from ` 6,496,074,880/- (Rupees Six
Billion Four Hundred Ninety Six Million Seventy Four Certificate from Secretarial Auditors of the Company that
Thousand and Eight Hundred Eighty only) divided into ESOP Scheme 2016 has been implemented in accordance
1,299,214,976 (One Billion Two Hundred Ninety Nine with the SEBI ESOP Regulations and the resolution(s)
Million Two Hundred Fourteen Thousand and Nine passed by the Members of the Company will be uploaded
Hundred Seventy Six) Equity Shares of face value of on website viz. https://varunbeverages.com/agm/ for
` 5/- (Rupees Five only) each to ` 6,763,020,034/- inspection by Members of the Company.
(Rupees Six Billion Seven Hundred Sixty Three Million
Twenty Thousand and Thirty Four only) divided into The statutory disclosures as mandated under the Act and
3,381,510,017 (Three Billion Three Hundred Eighty One SEBI ESOP Regulations are available on website of the
Million Five Hundred Ten Thousand and Seventeen) Company at https://varunbeverages.com/agm/
Equity Shares of face value of ` 2/- (Rupees Two only)
each due to (i) sub-division/split of Equity Shares of Credit Rating
the Company such that each Equity Share having face During the year under review, your Company’s credit
value of ` 5/- each fully paid-up, was sub-divided/split ratings by CRISIL is as below:
into such number of Equity Shares having face value of
` 2/- each fully paid-up; (ii) allotment of 729,215 (Seven Long Term Rating CRISIL AA+/Stable (Re-affirmed)
Hundred Twenty Nine Thousand and Two Hundred Short Term Rating CRISIL A1+ (Re-affirmed)
Fifteen) Equity Shares of the Company in aggregate
upon exercise of stock options vested under Employees Related Party Transactions
Stock Option Scheme 2016; (iii) allotment of 132,743,362 To comply with the provisions of Sections 177 and 188 of
(One Hundred Thirty Two Million Seven Hundred Forty the Act and Rules made thereunder read with Regulation
Three Thousand and Three Hundred Sixty Two) Equity 23 of SEBI (LODR) Regulations, your Company took

Annual Report 2024 161

necessary prior (including omnibus) approval of the • Varun Beverages Morocco SA;
Audit, Risk Management and Ethics Committee before
• Varun Beverages (Zambia) Limited;
entering into related party transactions. All contracts/
arrangements/transactions entered into by the • Varun Beverages (Zimbabwe) (Private) Limited;
Company during the Financial Year 2024 with related
• Varun Beverages RDC SAS;
parties, as defined under the Act and SEBI (LODR)
Regulations, were in the ordinary course of business and • Varun Beverages International DMCC;
on arm’s length basis. • Varun Beverages South Africa (Pty) Ltd;
During the year under review, your Company and/ • VBL Mozambique, SA;
or its subsidiaries have not entered into any contract/
• The Beverage Company Proprietary Limited,
arrangement/transaction with related parties which could
be considered material in accordance with the Policy of South Africa (w.e.f. 26.03.2024);
the Company on Related Party Transactions. - T
 he Beverage Company Bidco Proprietary Limited
(w.e.f. 26.03.2024) (step-down subsidiary);
None of the transactions with any of the related parties
were in conflict with the interest of the Company rather, - L
 ittle Green Beverages Proprietary Limited
these were synchronized and synergized with the (w.e.f. 26.03.2024) (step-down subsidiary);
Company’s operations. Attention of Members is drawn to
- S
 oftbev Proprietary Limited (w.e.f. 26.03.2024)
the disclosure of transactions with the related parties set
(step-down subsidiary);
out in Note No. 43 of the Standalone Financial Statements
forming part of the Annual Report. • Varun Foods (Zimbabwe) (Private) Limited
(w.e.f. 22.05.2024); and
Your Company has framed a Policy on Related Party
• Lunarmech Technologies Private Limited
Transactions in accordance with the Act and SEBI
(LODR) Regulations. The Policy intends to ensure that (wholly owned subsidiary w.e.f. 16.12.2024).
proper reporting, approval and disclosure processes are
in place for all transactions between the Company and its Associates
related parties. The policy is uploaded on website of the • Clean Max Tav Private Limited; and
Company at https://www.varunbeverages.com/policies/ • Huoban Energy 7 Private Limited
policy-on-related-party-transactions.pdf

Since all transactions which were entered into during the Joint Venture
Financial Year 2024 were on arm’s length basis and in the • IDVB Recycling Operations Private Limited
ordinary course of business and there was no material
related party transaction entered by the Company To comply with the provisions of Section 129 of the Act, a
during the Financial Year 2024 as per Policy on Related separate statement containing salient features of Financial
Party Transactions, hence no detail is required to be Statements of Subsidiaries, Associates and Joint Venture
provided in Form AOC-2 prescribed under Clause (h) of of your Company (including their performance and
Sub-section (3) of Section 134 of the Act and Rule 8(2) of financial position) in prescribed Form AOC-1 forms part
the Companies (Accounts) Rules, 2014. of Consolidated Financial Statements and therefore not
repeated here to avoid duplication. Further, contribution
Particulars of Loans, Guarantees or Investments of Subsidiaries, Associates and Joint Venture to the
Details of Loans, Guarantees or Investments covered overall performance of your Company is outlined in Note
under the provisions of Section 186 of the Act are given in No. 58 of the Consolidated Financial Statements.
the Notes to the Standalone Financial Statements.
Financial Statements of the aforesaid Subsidiaries,
Subsidiaries, Associates and Joint Ventures Associates and Joint Venture companies are kept open
for inspection by the Members at the Registered Office
Your Company has following Subsidiaries, Associates and
of your Company on all days except Saturday, Sunday
Joint Venture:
and Public Holiday up to the date of AGM i.e. April 3,
Subsidiaries 2025 between 11:00 a.m. to 5:00 p.m. as required under
• Varun Beverages (Nepal) Private Limited; Section 136 of the Act. Any Member desirous of obtaining
a copy of the said Financial Statements may write to the
• Varun Beverages Lanka (Private) Limited;
Company at its Registered Office or Corporate Office.
- O
 le Springs Bottlers (Private) Limited The Financial Statements including the Consolidated
(step-down subsidiary); Financial Statements and all other documents required

162 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

to be attached with this Report have been uploaded on conditions specified in the Act read with Rules made
website of the Company at https://varunbeverages.com/ thereunder and SEBI (LODR) Regulations and are eligible
annual-reports/ & independent of the management.

To comply with the provisions of Regulation 16(c) None of the Directors of the Company are disqualified as
of SEBI (LODR) Regulations, the Board of Directors per the provisions of Section 164 of the Act. The Directors
of the Company have approved and adopted a of the Company have made necessary disclosures under
Policy for determination of Material Subsidiary and Section 184 and other relevant provisions of the Act.
Governance of Subsidiaries and as on December 31,
2024, none of the subsidiary was a material subsidiary Brief resume and other details of the Directors being
of the Company in terms of the said Policy. Policy for appointed/re-appointed at the ensuing AGM as stipulated
determination of Material Subsidiary and Governance of under Secretarial Standard-2 issued by the Institute of
Subsidiaries is uploaded on website of the Company at Company Secretaries of India and Regulation 36 of the
https://www.varunbeverages.com/policies/policy-on- SEBI (LODR) Regulations, are separately disclosed in the
material-subsidiary-VBL.pdf Notice of ensuing AGM.

Directors and Key Managerial Personnel Key Managerial Personnel

Directors Mr. Rajesh Chawla was appointed as a Chief Financial
To comply with the provisions of Section 152 of the Act Officer and Key Managerial Personnel of the Company w.e.f.
and in terms of the Articles of Association of the Company, May 14, 2024 in accordance with the provisions of Section
Mr. Varun Jaipuria (DIN: 02465412) and Mr. Rajinder Jeet 203 of the Act read with the Companies (Appointment
Singh Bagga (DIN: 08440479), Whole-time Directors are and Remuneration of Managerial Personnel) Rules, 2014,
liable to retire by rotation at the ensuing AGM and being in place of Mr. Lalit Malik, who resigned as Chief Financial
eligible, seeks re-appointment. The Board of Directors, on Officer and Key Managerial Personnel of your Company
the recommendation of Nomination and Remuneration w.e.f. May 13, 2024.
Committee (‘NRC’), recommended their re-appointment
for consideration by the Members at the ensuing AGM. Further, Mr. Raj Gandhi, Whole-time Director and Mr. Ravi
Batra, Chief Risk Officer & Group Company Secretary,
Further, the re-appointment of Mr. Varun Jaipuria and continued to be the Key Managerial Personnel of your
Mr. Raj Gandhi (DIN: 00003649) w.e.f. November 1, 2024 Company in accordance with the provisions of Section
and Mr. Rajinder Jeet Singh Bagga w.e.f. May 2, 2024 as 203 of the Act read with the Companies (Appointment
Whole-time Directors for a further period of upto 5 (Five)
and Remuneration of Managerial Personnel) Rules, 2014.
years, liable to retire by rotation and the appointment of
Dr. Naresh Trehan (DIN: 00012148) w.e.f. April 21, 2024 as a Board Evaluation
Non-Executive Non-Independent Director of the Company,
To comply with the provisions of Section 134(3)(p) of
liable to retire by rotation were approved by Members of
the Act and Rules made thereunder and Regulation
your Company at 29th AGM held on April 3, 2024.
17(10) of SEBI (LODR) Regulations, the Board has carried
Company has received declarations from all the out the annual performance evaluation of the Directors
Independent Directors of the Company confirming that individually including the Independent Directors
they meet the criteria of independence as prescribed both (wherein the concerned Director being evaluated did not
under Section 149(6) of the Act and Regulation 16(1)(b) of participate), Board as a whole and following Committees
the SEBI (LODR) Regulations and are in compliance with of the Board of Directors:
Rule 6 of the Companies (Appointment and Qualification i) Audit, Risk Management and Ethics Committee;
of Directors) Rules, 2014. Further, the Independent
Directors have also confirmed that they are not aware ii) Nomination and Remuneration Committee;
of any circumstance or situation, which exists or may be iii) Stakeholders’ Relationship Committee; and
reasonably anticipated, that could impair or impact their
ability to discharge their duties as Independent Directors iv) Corporate Social Responsibility Committee.
of the Company.
The manner in which the annual performance evaluation
The Board is of the opinion that the Independent has been carried out is explained in the Corporate
Directors of the Company possess requisite qualifications, Governance Report which forms part of this report.
experience and expertise and they hold highest standards Board is responsible to monitor and review the
of integrity (including the proficiency) and fulfils the evaluation framework.

Annual Report 2024 163

Further, to comply with Regulation 25(4) of SEBI (LODR) of the Company for a period of upto 5(Five) consecutive
Regulations, Independent Directors also evaluated the years to hold office till the conclusion of AGM to be held
performance of Non-Independent Directors, Chairman in the year 2027 and 2028 respectively. They have also
and Board as a whole at a separate meeting of confirmed that they are not disqualified from continuing
Independent Directors. as Joint Statutory Auditors of the Company.

Board and Committees of the Board The Statutory Auditors’ Report for the Financial Year
The number of meetings of the Board and various 2024 does not contain any qualification, reservation or
Committees of the Board including composition are set adverse remark and forms part of the Annual Report. The
out in the Corporate Governance Report which forms part Statutory Auditors have not reported any fraud under
of this report. The intervening gap between the meetings Section 143(12) of the Act.
was within the period prescribed under the provisions of
Section 173 of the Act and SEBI (LODR) Regulations. Cost Audit
In terms of Section 148 of the Act and the Companies
Remuneration Policy (Cost Records and Audit) Rules, 2014, Cost Audit is not
To comply with the provisions of Section 178 of the Act applicable on the Company for the Financial Year 2024.
and Rules made thereunder and Regulation 19 of SEBI
(LODR) Regulations, the Company’s Remuneration Policy Disclosure under Sexual Harassment of Women
for Directors, Key Managerial Personnel (KMP), Senior at Workplace (Prevention, Prohibition and
Management and other Employees of the Company is Redressal) Act, 2013
uploaded on website of the Company at https://www. To comply with the provisions of Section 134 of the Act
varunbeverages.com/wp-content/uploads/2023/03/12- and Rules made thereunder, your Company has complied
Remuneration-Policy.pdf. The Policy includes, inter-alia, with the provisions relating to constitution of Internal
the criteria for determining qualifications, positive Complaints Committee under the Sexual Harassment
attributes, independence of a Director, appointment and of Women at Workplace (Prevention, Prohibition and
remuneration of Directors, KMPs, Senior Management Redressal) Act, 2013.
Personnel and other employees of the Company.
During the year under review, no complaint was received
under the Sexual Harassment of Women at Workplace
Remuneration of Directors, Key Managerial
(Prevention, Prohibition and Redressal) Act, 2013.
Personnel and Particulars of Employees
The statement of remuneration under Section 197 of the Vigil Mechanism / Whistle Blower Policy
Act read with Rule 5(1) of the Companies (Appointment
Pursuant to the provisions of Section 177 of the Act and
and Remuneration of Managerial Personnel) Rules, 2014,
Regulation 22 of SEBI (LODR) Regulations, the Company
is attached to this report as Annexure – A.
has adopted a Vigil Mechanism/Whistle Blower Policy to
provide a platform to the Directors and Employees of the
Further, as per second proviso to Section 136(1) of the Act
Company to raise concerns regarding any irregularity,
read with Rule 5 of the aforesaid Rules, the Board’s Report
misconduct or unethical matters/dealings within the
and Financial Statements are being sent to the Members
Company. The same is detailed in the Corporate
of the Company excluding the statement of particulars of
Governance Report which forms part of this report.
employees as required under Rule 5(2) of the aforesaid
Rules. Any member interested in obtaining a copy of the During the year under review, no complaint was received
said statement may write to the Compliance Officer at under the Vigil Mechanism/ Whistle Blower Policy of
complianceofficer@rjcorp.in up to the date of AGM. The the Company.
said statement is also available for inspection by the
Members at the Registered Office of your Company on Secretarial Auditors
all days except Saturday, Sunday and Public Holiday up Pursuant to the amended provisions of Regulation 24A
to the date of AGM i.e. April 3, 2025 between 11:00 a.m. of the SEBI (LODR) Regulations and Section 204 of the
to 5:00 p.m. Act read with Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the
Statutory Auditors Audit, Risk Management and Ethics Committee and the
The Shareholders of the Company in their 27th & 28th AGM Board of Directors have approved and recommended the
held on April 7, 2022 and March 27, 2023 respectively appointment of M/s. Sanjay Grover & Associates, Peer
appointed M/s. O P Bagla & Co. LLP, Chartered Accountants Reviewed Firm of Company Secretaries in Practice (Firm
(Firm Registration Number 000018N/N500091) and Registration Number: P2001DE052900) as Secretarial
M/s. J C Bhalla & Co., Chartered Accountants (Firm Auditors of the Company for a term of upto 5(Five)
Registration Number 001111N) as Joint Statutory Auditors consecutive years to hold office from the conclusion

164 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

of ensuing AGM till the conclusion of 35th (Thirty Fifth) Annual Report on CSR activities for the Financial Year
AGM of the Company to be held in the Year 2030, 2024 as required under Sections 134 and 135 of the Act
for approval of the Members at ensuing AGM of the read with Rule 8 of the Companies (Corporate Social
Company. Brief resume and other details of M/s. Sanjay Responsibility Policy) Rules, 2014 and Rule 9 of the
Grover & Associates, Company Secretaries in Practice, are Companies (Accounts) Rules, 2014 is attached to this
separately disclosed in the Notice of ensuing AGM. report as Annexure - C.

M/s. Sanjay Grover & Associates have given their consent Directors’ Responsibility Statement
to act as Secretarial Auditors of the Company and Pursuant to Section 134(3)(c) read with Section 134(5) of
confirmed that their aforesaid appointment (if made) the Act, the Directors state that:
would be within the prescribed limits under the Act &
Rules made thereunder and SEBI (LODR) Regulations. (a) 
in the preparation of the annual accounts for the
They have also confirmed that they are not disqualified Financial Year ended December 31, 2024, the
to be appointed as Secretarial Auditors in terms of applicable accounting standards have been followed
provisions of the Act & Rules made thereunder and SEBI along with proper explanation relating to material
(LODR) Regulations. departures;

(b) 
they have selected such accounting policies and
The Secretarial Audit Report for the Financial Year 2024
applied them consistently and made judgments and
does not contain any qualification, reservation or adverse
estimates that are reasonable and prudent so as to
remark and is attached to this report as Annexure – B.
give a true and fair view of the state of affairs of your
Further, the Secretarial Auditors have not reported any
Company as at December 31, 2024 and of the profits
fraud under Section 143(12) of the Act.
of the Company for the period ended on that date;

Risk Management (c) proper and sufficient care have been taken for the
The Audit, Risk Management and Ethics Committee of the maintenance of adequate accounting records in
Board of Directors inter-alia monitor and review the risk accordance with the provisions of Act for safeguarding
management plan and such other functions as assigned the assets of your Company and for preventing and
from time to time. detecting fraud and other irregularities;

(d) the annual accounts have been prepared on a going

Your Company has a robust Risk Management Policy which concern basis;
identifies and evaluates business risks and opportunities.
The Company recognizes that these risks needs to be (e) proper internal financial controls laid down by the
managed and mitigated to protect the interest of the Directors were followed by the Company and that
stakeholders and to achieve business objectives. The risk such internal financial controls were adequate and
management framework is aimed at effectively mitigating operating effectively; and
the Company’s various business and operational risks (f) 
proper systems to ensure compliance with the
through strategic actions. In line with the SEBI (LODR) provisions of all applicable laws were in place and
Regulations, cyber security risks are also covered under that such systems were adequate and operating
Risk Management Policy of the Company. effectively.

Internal Financial Controls Other Information

Your Company has in place adequate Internal Financial Management Discussion & Analysis Report
Controls. The report on Internal Financial Controls issued
Management Discussion & Analysis Report for the Financial
by M/s. J C Bhalla & Co., Chartered Accountants and
Year 2024 as stipulated under Regulation 34(2)(e) of SEBI
M/s. O P Bagla & Co. LLP, Chartered Accountants, Joint
(LODR) Regulations forms part of the Annual Report.
Statutory Auditors of the Company is annexed to the Audit
Report on the Financial Statements of the Company and
Business Responsibility and Sustainability Report
does not contain any reportable weakness in the Company.
Business Responsibility and Sustainability Report (‘BRSR’)
Corporate Social Responsibility (CSR) for the Financial Year 2024 describing the initiatives
taken by the Company from an Environment, Social and
Your Company has a Corporate Social Responsibility Policy
Governance perspective as stipulated under Regulation
which is uploaded on website of the Company at https://
34(2)(f) of SEBI (LODR) Regulations forms part of the
varunbeverages.com/wp-content/uploads/2023/05/24-
Annual Report.
CSR-Policy-Clear-Version.pdf. This Policy includes inter-
alia the guiding principles for selection, implementation Further, as per the new reporting requirements, your
and monitoring of CSR activities of the Company. Company had taken reasonable assurance of the BRSR

Annual Report 2024 165

Core from third-party Independent Assurance provider General
and the same forms part of the Annual Report. Your Directors confirm that no disclosure or reporting is
required in respect of the following items as there was no
Conservation of Energy, Technology Absorption and transaction on these items during the year under review:
Foreign Exchange Earnings and Outgo
1. Issue of equity shares with differential voting rights
The information on conservation of energy, technology as to dividend, voting or otherwise.
absorption and foreign exchange earnings and outgo
2. The Whole-time Directors of the Company does not
as stipulated under Section 134(3)(m) of the Act read
receive any remuneration or commission from any of
with Rule 8 of the Companies (Accounts) Rules, 2014 is
its subsidiaries.
attached to this report as Annexure – D.
3. 
No significant or material orders were passed by
Corporate Governance Report the Regulators or Courts or Tribunals which impact
Your Company is committed to maintain the highest the going concern status and Company’s operations
in future.
standards of Corporate Governance and adhere to the
Corporate Governance requirements set out by Securities 4. Issue of Sweat Equity Shares.
and Exchange Board of India. The report on Corporate 5. 
No application made or any proceeding pending
Governance as stipulated under the SEBI (LODR) under Insolvency and Bankruptcy Code, 2016 as at
Regulations is attached to this report as Annexure – E. the end of the Financial Year 2024.
The certificate from M/s. Sanjay Grover & Associates,
6. No instance of one-time settlement with any bank or
Practicing Company Secretaries confirming compliance
financial institution.
with the conditions of corporate governance is also
attached to the Corporate Governance Report. The Company is in regular compliance of the applicable
provisions of Secretarial Standards issued by the Institute
Listing of Company Secretaries of India.
The Equity Shares of the Company are listed on the
National Stock Exchange of India Limited and BSE No material changes and commitments have occurred
Limited. Both these stock exchanges have nation-wide after the closure of the Financial Year 2024 till the date of
trading terminals. Annual listing fee for the Financial Year this Report, which would affect the financial position of
2024-25 has been paid to the National Stock Exchange of your Company.
India Limited and BSE Limited.
Acknowledgement
Equity Shares of your Company have been admitted Your Company’s organizational culture upholds
in Future & Options (F&O) segment with National professionalism, integrity and continuous improvement
Stock Exchange of India Limited with effect from across all functions as well as efficient utilization of the
November 29, 2024 and BSE Limited with effect from Company’s resources for sustainable and profitable
December 13, 2024. growth.

Annual Return Your Directors wish to place on record their appreciation

for the sincere services rendered by employees of the
Pursuant to Sections 92(3) and 134(3)(a) of the Act,
Company at all levels. Your Directors also wish to place on
the Annual Return of the Company is uploaded on
record their appreciation for the valuable co-operation and
website of the Company at https://varunbeverages.com/
support received from various Government Authorities,
annual-reports/
Banks/Financial Institutions and other stakeholders such
as members, customers and suppliers, among others. Your
Research & Development
Directors also commend the continuing commitment and
During the year under review, no Research & Development dedication of employees at all levels which has been vital
was carried out. for the Company’s success. Your Directors look forward
to their continued support in future.
Cautionary Statement
Statements in the Board’s Report and the Management For and on behalf of the Board of Directors
Discussion & Analysis Report describing the Company’s For Varun Beverages Limited
objectives, expectations or forecasts may be forward
looking within the meaning of applicable laws and Ravi Jaipuria
regulations. Actual results may differ from those Date: February 10, 2025 Chairman
expressed in the statement. Place: Gurugram DIN: 00003668

166 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure – A

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013
read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014
(i) Ratio of the remuneration of each director to the median remuneration of employees of the Company for the
Financial Year 2024 and the percentage increase in remuneration of each Director, Chief Financial Officer and
Company Secretary during the Financial Year 2024:
(` in Million)
Sl. Name of Director/KMP and Remuneration of % increase in Ratio of Remuneration
No. Designation Director/KMP for Remuneration in of Director to Median
Financial Year 2024 Financial Year 2024 Remuneration of employees
in Financial Year 2024
1. Mr. Varun Jaipuria, 72.02 33.32 175.66
Executive Vice-Chairman &
Whole-time Director
2. Mr. Raj Gandhi, 67.18 7.57 163.85
Whole-time Director
3. Mr. Rajinder Jeet Singh Bagga, 61.56 6.76 150.15
Whole-time Director
4. Mr. Lalit Malik, 38.17* Not Comparable@ Not Applicable
Chief Financial Officer (CFO)
5. Mr. Rajesh Chawla, 7.41 Not Comparable@ Not Applicable
Chief Financial Officer
6. Mr. Ravi Batra, 16.18 8.96 Not Applicable
Chief Risk Officer &
Group Company Secretary
*Remuneration includes variable pay, leave encashment and ex-gratia.
@ Mr. Rajesh Chawla was appointed as CFO with effect from May 14, 2024 in place of Mr. Lalit Malik, who resigned as CFO with
effect from May 13, 2024.

Note: Since Non-Executive Directors received no remuneration except sitting fee (if any) for attending Board/
Committee meetings, the required details are not applicable.

(ii) Number of permanent employees as on December 31, 2024 were 11,041 and median remuneration was ` 0.41 Million
annually. Median remuneration of employees (excluding above Directors and KMPs) in Financial Year 2024 has
increased by 3.61%.

It is hereby affirmed that the above-mentioned remuneration is in accordance with the Remuneration Policy
of the Company which is uploaded on website of the Company at https://varunbeverages.com/wp-content/
uploads/2023/03/12-Remuneration-Policy.pdf

(iii) Average percentile increase already made in the salaries of employees other than Managerial Personnel was
10% and average percentile increase in the remuneration of Managerial Personnel was 15.29% vis-a-vis the last
Financial Year.

For and on behalf of the Board of Directors

For Varun Beverages Limited

Ravi Jaipuria
Date: February 10, 2025 Chairman
Place: Gurugram DIN: 00003668

Annual Report 2024 167

 Annexure – B

Secretarial Audit Report

For the Financial Year ended December 31, 2024

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, ased on our verification of the Company’s books,

B
The Members, papers, minute books, forms and returns filed and
Varun Beverages Limited other records maintained by the Company and also the
(CIN: L74899DL1995PLC069839) information provided by the Company, its officers, agents
F-2/7, Okhla Industrial Area, Phase-I, and authorized representatives during the conduct of
New Delhi-110020 Secretarial Audit, we hereby report that in our opinion,
the Company has, during the audit period covering the
We have conducted the secretarial audit of the compliance financial year started from January 1, 2024 and ended
on December 31, 2024 (‘Audit Period’) complied with the
of applicable statutory provisions and the adherence to
statutory provisions listed hereunder and also that the
good corporate practices by Varun Beverages Limited
Company has proper Board processes and compliance
(the Company). Secretarial Audit was conducted in a
mechanism in place to the extent, in the manner and
manner that provided us a reasonable basis for evaluating
subject to the reporting made hereinafter.
the corporate conducts/statutory compliances and
expressing our opinion thereon. We have examined the books, papers, minute books,
forms and returns filed and other records maintained by
We report that- the Company for the financial year ended on December
a) 
Maintenance of secretarial records are the 31, 2024 according to the provisions of:
responsibility of the management of the Company. (i) 
The Companies Act, 2013 (the Act) and the rules
Our responsibility is to express an opinion on these made thereunder;
secretarial records based on our audit.
(ii) 
The Securities Contracts (Regulation) Act, 1956
b) We have followed the audit practices and processes (‘SCRA’) and the rules made thereunder;
as were appropriate to obtain reasonable assurance
(iii) The Depositories Act, 1996 and the Regulations and
about the correctness of the contents of the
Bye-laws framed thereunder;
secretarial records. The verification was done on
test basis to ensure that correct facts are reflected (iv) 
Foreign Exchange Management Act, 1999 and
in secretarial records. We believe that the processes the rules and regulations made thereunder to the
and practices we followed provide a reasonable basis extent of Foreign Direct Investment, Overseas Direct
for our opinion. Investment and External Commercial Borrowings,
wherever applicable;
c) 
We have not verified the correctness and
appropriateness of the financial statements of the (v) 
The following Regulations prescribed under the
Securities and Exchange Board of India Act, 1992
Company.
(‘SEBI Act’):-
d) 
Wherever required, we have obtained the
management representation about the compliances (a) 
The Securities and Exchange Board of
India (Substantial Acquisition of Shares and
of laws, rules and regulations and happening of
Takeovers) Regulations, 2011;
events etc.

e) The compliance of the provisions of the corporate and (b) 

The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
other applicable laws, rules, regulations, standards
2015;
etc. is the responsibility of the management. Our
examination was limited to the verification of (c) 
The Securities and Exchange Board of India
procedures on test basis. (Issue of Capital and Disclosure Requirements)
Regulations, 2018;
f) The Secretarial Audit report is neither an assurance
as to the future viability of the company nor of the (d) 
The Securities and Exchange Board of India
efficacy or effectiveness with which the management (Share Based Employee Benefits and Sweat
has conducted the affairs of the Company. Equity) Regulations, 2021;

168 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(e) 
The Securities and Exchange Board of India  dvance notice was given to all directors to schedule
A
(Issue and Listing of Non-Convertible Securities) the Board Meetings; agenda and detailed notes on
Regulations, 2021; {Not applicable during the agenda were sent in advance and a system exists
Audit Period} for seeking and obtaining further information and
clarifications on the agenda items before the meeting
(f) 
The Securities and Exchange Board of India
and for meaningful participation at the meeting.
(Registrars to an Issue and Share Transfer
Agents) Regulations, 1993 regarding the As per the minutes, the decisions at the Board
Companies Act and dealing with client; meetings were taken unanimously.

(g) 
The Securities and Exchange Board of India  e further report that there are systems and
W
(Delisting of Equity Shares) Regulations, 2021; processes in the Company commensurate with the
{Not applicable during the Audit Period} size and operations of the Company to monitor
and ensure compliance with applicable laws, rules,
(h) 
The Securities and Exchange Board of India regulations and guidelines.
(Buy-back of Securities) Regulations, 2018; {Not
applicable during the Audit Period} and We further report that during the Audit Period:
1. The Board of Directors in their meeting held on
(i) 
The Securities and Exchange Board of
July 30, 2024 and Members of the Company
India (Listing Obligations and Disclosure
through postal ballot on August 30, 2024
Requirements) Regulations, 2015.
approved the sub-division/ split of existing

We have also examined compliance with the equity shares of the Company such that
applicable clauses of the Secretarial Standard 1(One) equity share having face value of ` 5/-
on Meetings of the Board of Directors (SS-1) and (Rupees Five only) each fully paid-up, be
Secretarial Standard on General Meetings (SS-2) sub-divided/split into such number of equity
issued by the Institute of Company Secretaries shares having face value of ` 2/- (Rupees Two
of India, with which the Company has generally only) each fully paid-up on the Record Date
complied with. The Company is generally regular in (i.e. September 12, 2024).
filing e-forms with Registrar of Companies under the 2. The Board of Directors in their meeting held on
provisions of the Act. July 30, 2024 and Members of the Company
During the audit period, we are of the opinion that through postal ballot on August 30, 2024
the Company has complied with the provisions of approved the alteration of Capital Clause of the
the Act, Rules, Regulations and Guidelines to the Memorandum of Association of the Company
extent applicable. by deleting the existing Clause V of the
Memorandum of Association of the Company
The Company is PepsiCo’s second largest global and inserting the following new Clause V:
franchise (outside United States) and have a strategic
“V. The Authorized Share Capital of the Company
association with PepsiCo since 1991. The Company is a
is ` 1000,00,00,000/- (Rupees One Thousand
trusted business partner to PepsiCo and possesses the
Crore only) divided into 500,00,00,000 (Five
rights to manufacture, distribute and sell carbonated
Hundred Crore) Equity Shares of face value of
soft drinks, fruit juice-based drinks, packaged drinking
` 2/- (Rupees Two only) each.”
water and sports and energy drinks. As informed by
the Management, following Laws are being specifically 3. The Board of Directors in their meeting held on
applicable to the Company: October 9, 2024 and Members of the Company
i. Food Safety & Standards Act, 2006, Rules and through postal ballot on November 8, 2024
Regulations made thereunder approved raising of funds by way of issuance
of Equity Shares for an aggregate amount
ii. Legal Metrology Act, 2009 not exceeding ` 7,500 Crore (Rupees Seven
In our opinion and to the best of our information and Thousand Five Hundred Crore only), in one or
according to explanations given to us, we believe more tranche(s), through Qualified Institutions
that the Company is having systems in place to Placement.
check the compliance of laws specifically applicable
to the Company. For Sanjay Grover & Associates
Company Secretaries
We further report that the Board of Directors
 Firm Registration No.: P2001DE052900
of the Company is duly constituted with proper Peer Review Certificate No.: 6311/2024
balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes Kapil Dev Taneja
in the composition of Board of Directors that took Partner
place during the audit period were carried out in Place: New Delhi CP No.: 22944 / Mem. No. F4019
compliance with the provisions of the Act. Date: February 10, 2025 UDIN.: F004019F003904498

Annual Report 2024 169

 Annexure – C

Annual report on Corporate Social Responsibility (CSR) Activities

for the Financial Year 2024

1. Brief outline on CSR Policy of the Company

Your Company has a CSR Policy which is uploaded on website of the Company at https://varunbeverages.com/
wp-content/uploads/2023/05/24-CSR-Policy-Clear-Version.pdf

During the year under review, Company has spent ` 308.11 Million on promoting healthcare, education, vocational
skills, regional equality, water conservation, eradicating hunger, environmental sustainability, animal welfare, rural
development, etc. through RJ Foundation having Regn. No. CSR00006099. For more details, please refer page
no. 114 of the Annual Report.

2. Composition of CSR Committee

Composition of the CSR Committee and details of attendance during Financial Year 2024 are as under:

Sl. Name of Director Designation / Nature of Number of meetings of Number of meetings

No. Directorship CSR Committee held of CSR Committee
during the Financial attended during the
Year 2024 Financial Year 2024
1 Ms. Rashmi Dhariwal* Chairperson 2 2
(Independent Director)
2 Mr. Ravi Jaipuria Member 2 2
(Non-executive Chairman)
3 Mr. Varun Jaipuria Member 2 0
(Executive Vice Chairman &
Whole-time Director)
4 Mr. Raj Gandhi Member 2 2
(Whole-time Director)
*Chairperson w.e.f. February 5, 2024
Note: Video/Tele-conferencing facility is offered to facilitate Directors to participate in the meetings.

3. Web-link where Composition of CSR Committee, CSR Policy and CSR projects approved by the Board
are disclosed on the website of the Company
Composition of CSR Committee: https://varunbeverages.com/composition-of-the-committees-of-the-board/
CSR Policy: https://varunbeverages.com/wp-content/uploads/2023/05/24-CSR-Policy-Clear-Version.pdf
CSR Projects: https://www.varunbeverages.com/wp-content/uploads/2025/03/CSR-Projects-FY-24.pdf

4. 
Executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in
pursuance of sub-rule (3) of Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules,
2014, if applicable
The impact assessment of contribution made towards CSR projects on Aaru Clinics, Pravah Skill Development
Programme and Shiksha Kendra Programme during FY 2023 were undertaken through an independent agency.
Their report is available on website of the Company at https://varunbeverages.com/agm/.

5. (a) Average net profit of the Company as per sub-section (5) of Section 135: ` 15,405.45 Million
(b) Two percent of average net profit of the Company as per sub-section (5) of Section 135: ` 308.11 Million
(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil
(d) Amount required to be set off for the financial year, if any: Nil
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: ` 308.11 Million

170 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): ` 307.50 Million
(b) Amount spent in Administrative Overheads: ` 0.56 Million
(c) Amount spent on Impact Assessment, if applicable: ` 0.05 Million
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: ` 308.11 Million
(e) CSR amount spent or unspent for the financial year 2024:

Total Amount Spent Amount Unspent (in `)

for the Financial Year
Total Amount transferred to Amount transferred to any fund specified
(in `)
Unspent CSR Account as per under Schedule VII as per second proviso to
sub-section (6) of Section 135 sub-section (5) of Section 135

Amount Date of Name of the Amount Date of

transfer Fund transfer

308.11 Million Nil Not Applicable None Nil Not Applicable

(f) Excess amount for set off, if any: Nil

Sl. No. Particular Amount (in `)

(i) Two percent of average net profit of the Company as per sub-section (5) of
Section 135

(ii) Total amount spent for the financial year

(iii) Excess amount spent for the financial year [(ii)-(i)] Not Applicable

(iv) Surplus arising out of the CSR projects or programmes or activities of the
previous Financial Years, if any

(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)]

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:

Sl. Preceding Amount Balance Amount Amount transferred Amount Deficiency,

No. Financial transferred to Amount in Spent in to a Fund as specified remaining if any
Year(s) Unspent CSR Unspent the under Schedule VII as to be
Account CSR Financial per second proviso spent in
under sub- Account Year to sub-section (5) of succeeding
section under sub- (in `) Section 135, if any Financial
(6) of section Years
Section 135 (6) of (in `)
(in `) Section 135 Amount Date of
(in `) (in `) Transfer

Nil

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount
spent in the financial year:
√ Yes No

If Yes, enter the number of Capital assets created/acquired: 1(One)

Annual Report 2024 171

 Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount
spent in the financial year:

Sl. Short particulars Pincode of the Date of Amount Details of entity/ Authority/
No. of the property or property or creation of CSR beneficiary of the registered owner
asset(s) [including asset(s) amount CSR Name Registered
complete address spent Registration address
and location of the Number, if
property] applicable
1. Cost of construction Mathura-281401, February ` 0.98 CSR00006099 RJ F-2/7, Okhla
incurred on Uttar Pradesh 20, 2024 Million Foundation Industrial
Gaushala for animal Area,
welfare at Village Phase-I, New
Dautana, Tehsil Delhi-110020
Chhata, near Kosi
Kalan

9. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per
sub-section (5) of Section 135:
Not applicable.

Ravi Jaipuria Rashmi Dhariwal

Date: February 10, 2025 Member - CSR Committee Chairperson - CSR Committee
Place: Gurugram (Non-Executive Chairman) (Independent Director)
DIN: 00003668 DIN: 00337814

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure – D

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
required under the Companies (Accounts) Rules, 2014
The details of conservation of energy, technology absorption, foreign exchange earnings and outgo are as follows:

(a) Conservation of energy

(i) Steps taken or impact on A multi-pronged and sustainable approach is deployed in most of our plants
conservation of energy as well as products to infuse the concept of energy conservation. Some of the
energy conservation measures adopted across the manufacturing units were:

1. 
Use of frequency drive in ammonia and air compressor which saves
electric energy.

2. Use of frequency drive in boiler for ID and FD fan which saves electric
energy.

3. Heat recovery from hot compressed gases and used for heating water.

4. Recovery of treated hot water from three stage syrup transfer PHE.

5. Beverage filling at ambient temperature leading to huge power savings

in refrigeration.

6. Replacement of CFL/FTL lamps with LED lamps.

7. Replacement of low efficiency pump with high energy efficient pump.

8. Improving efficiency on critical resources like water and energy by doing

water recoveries and optimizing energy consumption.

9. 
Optimizing the resource consumptions and minimizing wastages by
automations and controls.

10. 
Installation of steam operated pump trap - SOPT for better steam
condensate recovery across all units.

11. Direct Coupled HP Compressors (No gear Box).

12. IE 5 permanent magnet motor.

13. Adiabatic cooling tower.

14. 
Improving condensate recovery by installation of SOPT and better
technology equipment which helped in improving boiler efficiency.

15. 
Heat recovery from High Pressure Air Compressors and Ammonia
Refrigeration compressors.

16. Installation of de-superheaters.

17. Installation of Godrej Control Air- IFC for optimizing HP requirements at

preform blow moulding machines.

18. Initiated Cold CIP which requires no heat during operation.

19. 
Blowing power reduction by compressors efficiency audit and
standardization of HP pressure SKU wise.

Annual Report 2024 173

 (ii) Steps taken by the Company 1. The Company has successfully utilized the environment friendly fuels
for utilizing alternate sources like biomass and PNG operated boiler for steam generation and installed
of energy solar panels in many plants to generate clean energy.

2. In our pursuit of creating a green future, we are proactively shifting to

renewable energy sources to fulfil our energy needs, pledging to broaden
our renewable energy portfolio. By utilizing solar and wind on-site, as
well as adopting open access (group captive power) sourcing methods,
we are augmenting our renewable energy capacity. We are steadfast in
our commitment to increasing the adoption of renewable energy at all
our manufacturing and office locations.

In our sustainability journey, the usage of renewable energy sources has

resulted in the generation of 73 million kWh units in FY 2024 from ~58
million kWh units in FY 2023. This accomplishment not only underscores
our dedication to reducing our environmental footprint but has also directly
contributed to a reduction in energy consumption sourced from the
electricity grid.

(iii) Capital investment on 1. Installation and commissioning of Solar Plant at Nuh and Greater Noida
energy conservation Plants. Further, all new upcoming plants are coming with solar panel
equipments installed at roof top like Sandila, Pathankot, Supa, Gorakhpur, Khordha etc.
2. Air recovery system in Blow Moulding Machine.
3. 
Filling machines which are capable of filling beverage at ambient
temperature with high speed running.
4. Green Oven for Bottle Blowing machine which consumes less energy as
compared to the traditional ones.
5. High energy efficient pumps.
6. Steam condensate recovery system across all units.
7. Investment is done in Godrej Control Air IFC.
8. Installation of desuperheaters.
9. Investment in modification of existing CIP system to enable cold CIP.

(b) Technology absorption

(i) Efforts made towards The Company has been continuously improving on resource use efficiencies,
technology absorption especially that of common resources such as water, fuel and energy and
reducing carbon footprint. The Company follows series of environment
performance indicators for monitoring natural resources consumption on
per case basis and continual improvement is being achieved and sustained.
New technology and Capex requirements are in progress at leadership level in
ESG to make provision accordingly.
(ii) Benefits derived like Over the past twelve years, Company has reduced water usage on per case
product improvement, basis and significant reduction of energy consumption on per case basis.
cost reduction, product Some of the factories have also received the Green Factory certification
development or import (Gold rating) from Indian Green Building Council (IGBC). Your Company
substitution also achieved significant reduction in weight of closure (from 1880 long
height closure to 1881 short height closure) and preforms over years. This
is implemented across all units resulting in to saving of resin consumption.
Usage of nitrogen in packaged drinking water enables unit to reduce 10% of
package weight. We also started metal cage for preform storage and handling
to minimize recycling waste. Recently three of our units Sathariya, Sandila and
Sricity received CII National award and noteworthy achievement for excellence
in water management within the fence. Sandila unit additionally rewarded in
'out of fence' category of water management excellence as recognized by CII.
Our Begusarai plant has received CII National award for Excellence in Water
Management in 2024.

174 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(iii) In case of imported There is no imported technology involved in the operation of the Company.
technology (imported
during the last three
years reckoned from the
beginning of the financial
year)-
(a) Details of technology N.A.
imported
(b) Year of import N.A.
(c) Whether the N.A.
technology been fully
absorbed
(d) If not fully absorbed, N.A.
areas where
absorption has not
taken place, and the
reasons thereof
(iv) Expenditure incurred on Due to the nature of its business, the Company need not to initiate specific
Research and Development research and development activities, however Company supports all the pilot
projects feasibility and commercialization along with PepsiCo.

(c) Foreign Exchange Earnings & Outgo

(` in Million)
Sl. No Particulars As at As at
December 31, 2024 December 31, 2023
(i) Earnings in Foreign Currency 3,439.48 2,586.62
(ii) Expenditure in Foreign Currency 13,243.72 13,685.96

For and on behalf of the Board of Directors

For Varun Beverages Limited

Ravi Jaipuria
Date: February 10, 2025 Chairman
Place: Gurugram DIN: 00003668

Annual Report 2024 175

 Annexure – E

Corporate Governance Report

To comply with Regulation 34 read with Schedule V of Best Corporate Governance Practices
the Securities and Exchange Board of India (Listing VBL maintains the highest standards of Corporate
Obligations and Disclosure Requirements) Regulations, Governance. It is the Company’s constant endeavour to
2015 [‘SEBI (LODR) Regulations’], the report containing adopt the best Corporate Governance practices keeping
details of Corporate Governance of Varun Beverages in view the international codes of Corporate Governance
Limited (‘the Company’/ ‘VBL’) is as follows: and practices of well-known global companies. Some of
the best implemented global governance norms include
Company’s Philosophy on Corporate Governance the following:
Corporate Governance is creation and enhancing long
• 
All securities related material filings with Stock
term sustainable value for the stakeholders through
Exchanges and SEBI are reviewed by the Company’s
ethically driven business process. At VBL, it is imperative
Board of Directors.
that your Company affairs are being managed in a fair
and transparent manner. • 
The Company has following Board Committees:
Audit, Risk Management and Ethics Committee,
Corporate Governance is all about maintaining a valuable
Stakeholders’ Relationship Committee, Nomination
relationship and trust with all stakeholders. We consider
and Remuneration Committee, Corporate Social
stakeholders as partners in our success and we remain
Responsibility Committee, Share Allotment
committed towards maximizing stakeholders’ value, be it
Committee, Investment and Borrowing Committee
shareholders, employees, suppliers, customers, investors,
and Environment, Social and Governance Committee.
communities or policy makers. This approach to value
creation emanates from our belief that sound governance • 
The Company also undergoes Secretarial Audit
system, based on relationship and trust, is integral to conducted by an independent firm of Practicing
creating enduring value for all. Company Secretaries. The Secretarial Audit Report
We believe, Corporate Governance is not just a destination, is placed before the Board and forms part of the
but a journey to constantly improve sustainable value Annual Report.
creation. It is an upward-moving target that we collectively • Observance and adherence of all applicable Laws
strive towards achieving. Our multiple initiatives towards including Secretarial Standards issued by The
maintaining the highest standards of governance are Institute of Company Secretaries of India.
detailed hereinafter.

The Corporate Governance framework of the Company is Governance Policies

based on the following broad practices: At VBL, we strive to conduct our business and strengthen
our relationship in a manner that is dignified, distinctive
(a) 
Engaging a diverse and highly professional,
and responsible. We adhere to ethical standards to
experienced and competent Board of Directors, with
ensure integrity, transparency, independence and
versatile expertise in industry, finance, management
accountability in dealing with all stakeholders. Therefore,
and law.
we have adopted various codes and policies to carry out
(b) Deploying well defined governance structures that our duties in an ethical manner. Some of the codes and
establishes checks and balances and delegates policies are as follows:
decision making to appropriate levels in the
• Code of Conduct for Board of Directors and Senior
organization.
Management;
(c) Adoption and implementation of fair, transparent and
• Code of Conduct for Prohibition of Insider Trading;
robust systems, processes, policies and procedures.
• Code of practices and procedures for fair disclosure
(d) Making high level of disclosures for dissemination of
of Unpublished Price Sensitive Information;
corporate, financial and operational information to
all its stakeholders. • Policy on Related Party Transactions;
• Corporate Social Responsibility Policy;
(e) Having strong systems and processes to ensure full
and timely compliance with all legal and regulatory • Policy for Determination of Material Subsidiary and
requirements and zero tolerance for non-compliance. Governance of Subsidiaries;

176 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

• Policy for Determination of Materiality of Events / The Board’s actions and decisions are aligned with the
Information; Company’s best interests. The Board critically evaluates
the Company’s strategic direction, management policies
• Remuneration Policy for Directors, Key Managerial
and their effectiveness.
Personnel, Members of Senior Management and
other Employees of the Company; Size and composition of the Board of Directors as at
• Familiarization Programme for Independent Directors; December 31, 2024 is given below:
• Vigil Mechanism/Whistle Blower Policy; Category Name of Directors
Non-executive Chairman Mr. Ravi Jaipuria*
• Policy for Preservation of Documents;
Executive Vice Chairman Mr. Varun Jaipuria*
• Policy on Diversity of the Board of Directors; & Whole-time Director
• Risk Management Policy; Executive / Whole-time Mr. Raj Gandhi
Directors Mr. Rajinder Jeet Singh Bagga
• Dividend Distribution Policy;
Non-executive, Dr. Naresh Trehan
• Archival Policy; Non-Independent Director
• Guidelines for Acquisition in India; Non-executive, Dr. Ravi Gupta
Independent Directors Mr. Abhiram Seth
• Go Green Guidelines;
Mr. Anil Kumar Sondhi
• Anti-Bribery Policy; Ms. Rashmi Dhariwal
• Policy for Prevention, Prohibition and Redressal of Ms. Sita Khosla
Sexual Harassment at Workplace; *Mr. Ravi Jaipuria and Mr. Varun Jaipuria are Promoters of the
Company.
• Policy on Incentives Linked to ESG Initiatives;
• Framework of Environment, Social and Governance Inter-se Relationship among Directors
(ESG); Except Mr. Ravi Jaipuria and Mr. Varun Jaipuria, none of the
Director is a relative of other Director(s). Mr. Varun Jaipuria,
• Grievance Redressal Policy; and
Executive Vice Chairman & Whole-time Director is son of
• Employees Stock Option Scheme 2016. Mr. Ravi Jaipuria, Non-executive Chairman of the Company.

Board of Directors Core Skills / Expertise / Competencies available

As at December 31, 2024, 5(Five) out of 10(Ten) Directors with the Board
on the Board were Independent Directors. At VBL, it is The Board comprises qualified Members who possess
our belief that an enlightened Board consciously creates required skills, expertise and competencies that allow
a culture of leadership to provide a long-term vision and them to make effective contributions to the Board and
policy approach to improve the quality of governance. its Committees.

The Matrix setting out the Skills, Expertise and Competencies available with the Board in context of business of the
Company is as under:
Sl. Name of Director Leadership / Strategic Industry Global Finance & Corporate
No. Operations Planning Experience, Business Legal Governance,
Technical, Compliance &
Research & Risk Management
Development and
Innovation
1. Mr. Ravi Jaipuria √ √ √ √ √ √
2. Mr. Varun Jaipuria √ √ √ √ - √
3. Mr. Raj Gandhi √ √ √ √ √ √
4. Mr. Rajinder Jeet
√ √ √ √ - √
Singh Bagga
5. Dr. Naresh Trehan √ √ - √ √ √
6. Dr. Ravi Gupta √ √ - - √ √
7. Mr. Abhiram Seth √ √ √ √ - √
8. Mr. Anil Kumar Sondhi √ √ √ - - √
9. Ms. Rashmi Dhariwal √ √ - - √ √
10. Ms. Sita Khosla √ √ - - √ √

Annual Report 2024 177

Selection of Independent Directors Chairman of the Board on an annual basis. A structured
Considering the requirement of skill sets on the Board, questionnaire is prepared and circulated to the Directors
eminent people having an independent standing in their for each of the evaluation.
respective field / profession and who can effectively
Board Evaluation for the Financial Year ended December
contribute to the Company’s business and policy decisions
31, 2024 has been completed by the Company internally
are considered by the Nomination and Remuneration
which included the evaluation of the performance of
Committee for appointment as an Independent Director
the Board as a whole, Board Committees and Directors
on the Board. The Committee, inter-alia, considers criteria
individually including Chairman of the Board and results
as prescribed under the Companies Act, 2013 (‘the Act’)
of the same were shared with the Board.
and SEBI (LODR) Regulations viz. positive attributes, area
of expertise, number of directorships and memberships
Internal Audit
held in various committees of other companies by such
persons in accordance with the Company’s Policy. The As recommended by the Audit, Risk Management
Board considers the Committee’s recommendation and and Ethics Committee, the Board of Directors in their
takes appropriate decision. meeting held on February 5, 2024 appointed M/s. VGG
& Co., Chartered Accountants as Internal Auditors of the
A statement in connection with fulfilling the criteria Company for the Financial Year 2024 to conduct internal
of Independence and directorships as required under audit of the Company and their report on findings is
the provisions of the Act and SEBI (LODR) Regulations submitted to the Audit, Risk Management and Ethics
Committee on periodic basis.
received from each of Independent Director is disclosed in
the Board’s Report. Your Company had also issued formal
Separate Meeting of Independent Directors
appointment letters to all the Independent Directors in the
manner provided under the Act. Terms and Conditions for To comply with the provisions of Schedule IV of the Act
appointment of Independent Directors are available on read with Regulation 25 of SEBI (LODR) Regulations, the
website of the Company at https://www.varunbeverages. Independent Directors met once on November 28, 2024
com/wp-content/uploads/2023/03/1-2.-Terms-of-IDs.pdf during the Financial Year 2024, without the presence
of Non-Independent Directors and members of the
In the opinion of the Board, the Independent Directors management team and inter-alia reviewed:
fulfill the conditions as specified in the Act and SEBI • The performance of Non-Independent Directors and
(LODR) Regulations and are Independent of the the Board as a whole;
management.
• The performance of the Chairman of the Company,
taking into account the views of Executive Directors
Independent Directors’ Induction and
and Non-executive Directors; and
Familiarization
An appropriate induction programme for new Directors • 
The quality, quantity and timeliness of flow of
and ongoing training for existing Directors is a major information between the Company’s management
contributor in maintaining the high Corporate Governance and the Board that is necessary for the Board to
standards of the Company. The Whole-time Directors effectively and reasonably perform their duties.
and the Company Secretary are jointly responsible for In addition to formal meetings, interactions also took
ensuring that such induction and training programmes place between the Chairman and Independent Directors.
are given to the Directors. The management provides
such information and training either at the meeting Board Meetings, Board Committee Meetings
of Board of Directors or otherwise. The details of such and Procedure
familiarization programme for Independent Directors Board is the apex body constituted by shareholders for
are posted on website of the Company at https:// overseeing the Company’s overall functioning. The Board
varunbeverages.com/wp-content/uploads/2023/03/2-1.- provides and evaluates the Company’s strategic direction,
Details-of-Familiariation-Programme-of-IDs.pdf management policies, their effectiveness and ensures
that shareholders’ long term interests are being served.
Board Evaluation
As on date of this report, the Board has 7(Seven)
The Board of Directors of the Company ensures formation
Committees, namely Audit, Risk Management and Ethics
and monitoring of robust evaluation framework of the
Committee, Stakeholders’ Relationship Committee,
Individual Directors including Chairman of the Board, Nomination and Remuneration Committee, Corporate
Board as a whole and various Committees thereof and Social Responsibility Committee, Share Allotment
carries out the evaluation of the Board, the Committees Committee, Investment and Borrowing Committee, and
of the Board and Individual Directors, including the Environment, Social and Governance Committee.

178 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

The Company’s internal guidelines for Board/Board • Reviewing financial plans of the Company.
Committee meetings facilitate the decision making process • Reviewing the quarterly and annual financial results
at its meetings in an informed and efficient manner. of the Company.
• 
Reviewing the Annual Report including Audited
Board/Committee Meetings
Annual Financial Statements for adoption by the
The Board meets at regular intervals to discuss and Members.
decide on Company / business policies and strategies
• Reviewing progress of various functions and business
apart from other regular business matters. The Board/
of the Company.
Committee Meetings are pre-scheduled and a tentative
annual calendar of the Board and Committee Meetings • 
Reviewing the functioning of the Board and its
Committees.
is circulated to all Directors well in advance to facilitate
them to plan their schedule and to ensure meaningful • Reviewing the functioning of subsidiary companies.
participation in the meetings. The Board is updated on • 
Consider and approve the declaration/
the discussions held at the Committee meetings and the recommendation of dividend.
recommendations made by various Committees. • Reviewing and resolving fatal or serious accidents
Agenda of the Board/Committee Meetings is set by or dangerous occurrences, any material significant
the Chief Risk Officer & Group Company Secretary in effluent or pollution problems or significant labour
consultation with the Whole-time Director(s) and the issues, if any.
Chairman of the Company. The agenda is generally • Reviewing the details of significant development in
circulated a week prior to the date of the meeting and human resources and industrial relations front.
includes detailed notes on items to be discussed at the • Reviewing details of foreign exchange exposure and
meeting to enable the Directors to take an informed steps taken by the management to limit the risks of
decision. However, in case of urgency, the agenda adverse exchange rate movement.
is circulated along with shorter notice as per the
• Reviewing compliance with all relevant legislations
provisions of the Secretarial Standard on Meetings of the
and regulations and litigation status, including
Board of Directors issued by the Institute of Company
important show cause, demand, prosecution and
Secretaries of India. Usually meetings of the Board are
penalty notices, if any.
held at Corporate Office of the Company at Gurugram.
• Advising on corporate restructuring such as merger,
Draft minutes of proceedings of the Board/Committee
acquisition, joint venture or disposals, if any.
meetings are circulated for comments/suggestions
and thereafter, final minutes are noted by the Board/ • 
Appointing Directors on the Board and Key
Committees at their next meeting. Managerial Personnel, if any.
• 
Reviewing various policies of the Company and
Board meets at least once in a quarter to review inter-alia
monitoring implementation thereof.
the quarterly results, compliances and performance of the
Company. Additional meetings are held on need basis. • 
Reviewing details of risk evaluation and internal
controls.
The Company also provides facility to the Directors to
• Reviewing reports on progress made on the ongoing
attend meetings of the Board and its Committees through
projects.
Video/Tele Conferencing mode.
• Monitoring and reviewing board evaluation framework.
8 (Eight) Board meetings were held during the Financial
• 
Review report(s) on Environment, Social and
Year 2024 on February 5, 2024, February 20, 2024,
Governance.
May 13, 2024, July 15, 2024, July 30, 2024, October 9,
2024, October 22, 2024 and November 12, 2024. The Board Support
gap between two Board meetings was within the limit
The Chief Risk Officer & Group Company Secretary is
prescribed under Section 173(1) of the Act and Regulation
responsible for collation, review and distribution of all
17(2) of the SEBI (LODR) Regulations.
papers submitted to the Board and Committees thereof
Board Business for consideration. He is also responsible for preparation of
Agenda in consultation with the Whole-time Director(s)
The business of the Board inter-alia includes:
and the Chairman of the Company and convening of
• Framing and overseeing progress of the Company’s Board and Committee Meetings. The Chief Risk Officer &
annual plan and operating framework. Group Company Secretary attends all the meetings of the
• Framing strategies for direction of the Company and Board and its Committees, advises and assures the Board
for corporate resource allocation. on Compliance and Governance principles.

Annual Report 2024 179

Recording Minutes of proceedings of Board and Committee meetings
The Chief Risk Officer & Group Company Secretary ensures appropriate recording of minutes of proceedings of each
Board and Committee Meeting. The minutes are entered in the Minutes Book within 30 (Thirty) days from the date of
conclusion of the meetings as per the Secretarial Standards issued by The Institute of Company Secretaries of India.

Post meeting follow-up mechanism

The guidelines for Board and Committee meetings facilitate an effective post meeting follow-up, review and reporting
process for decisions taken by the Board and Committees thereof. Important decisions taken at Board/ Committee
meetings are communicated promptly to the concerned departments/divisions. Action-taken report (if any) on
decisions/minutes of the previous meeting(s) is placed at the succeeding meeting of the Board/ Committees for review.

Attendance of Directors at Board Meetings & last Annual General Meeting (AGM), number of other
Directorships and Chairmanships / Memberships of Committees and Shareholding of each Director
in the Company
Name and DIN Designation & Attendance in Number of Committee Membership Shareholding
Category Financial Year Directorships in and Chairmanship in in the
2024 other Companies$ other Companies# as on Company
as on December December 31, 2024 as on
31, 2024 December 31,
2024
Board AGM Private Public Chairman Member
Meetings ship ship

Mr. Ravi Jaipuria Promoter (Non- 8/8 Yes 1 5 Nil 1 564,736,222

(00003668) executive Chairman)

Mr. Varun Jaipuria Promoter (Executive 7/8 Yes 3 2 Nil Nil 520,859,870
(02465412) Vice Chairman &
Whole-time Director)

Mr. Raj Gandhi Whole-time Director 8/8 Yes 2 6 Nil 3 6,561,122

(00003649) (Executive Director)

Mr. Rajinder Jeet Whole-time Director 7/8 Yes 1 1 Nil Nil 1,459,685
Singh Bagga (Executive Director)
(08440479)

Dr. Naresh Trehan Non-executive Non- 5/6 N.A. 2 6 Nil Nil Nil
(00012148)& Independent Director

Dr. Ravi Gupta Non-executive 8/8 Yes 9 5 4 7 Nil

(00023487) Independent Director

Ms. Rashmi Dhariwal Non-executive 7/8 Yes 3 5 1 7 Nil

(00337814) Independent Director

Ms. Sita Khosla Non-executive 7/8 Yes Nil Nil Nil Nil Nil
(01001803) Independent Director

Mr. Abhiram Seth Non-executive 6/8 Yes 3 4 2 3 7,380

(00176144) Independent Director

Mr. Anil Kumar Non-executive 8/8 Yes Nil Nil Nil Nil Nil
Sondhi Independent Director
(00696535)

$ D
 oes not include directorship in foreign companies.
# I ncludes only Audit Committee and Stakeholders’ Relationship Committee in all public limited companies (whether listed or not) and
excludes private limited companies, foreign companies and Section 8 companies.
& Appointed as a Non-executive Non-independent Director with effect from April 21, 2024.

Note: Video/Tele-conferencing facility is offered to facilitate Directors to participate in the meetings.

180 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Pursuant to Part C of Schedule V of the SEBI (LODR) Regulations, details of Directorship in other listed entity and
category of Directorship as on December 31, 2024, are mentioned below:
Sl. No. Name of Director Company Category of Directorship
1. Mr. Ravi Jaipuria Devyani International Limited Non-executive Non-Independent Director
Global Health Limited Non-executive Non-Independent Director
2. Mr. Varun Jaipuria Devyani International Limited Non-executive Non-Independent Director
3. Mr. Raj Gandhi Devyani International Limited Non-executive Non-Independent Director
4. Dr. Naresh Trehan Global Health Limited Executive Director
5. Dr. Ravi Gupta Devyani International Limited Non-executive Independent Director
Epack Durable Limited Non-executive Independent Director
Global Health Limited Non-executive Independent Director
6 Ms. Rashmi Dhariwal Devyani International Limited Non-executive Independent Director
Vindhya Telelinks Limited Non-executive Independent Director
7. Mr. Abhiram Seth LT Foods Limited Non-executive Independent Director

Committees of the Board • Reviewing with the Management the quarterly/

annual results and annual financial statements
The Board Committees play a vital role in strengthening
and Auditors’ Report thereon before
the Corporate Governance practices. The Board
submission to the Board for approval. This
Committees are set up under formal approval of the Board
would, inter-alia, include reviewing changes
to carry out clearly defined roles which are considered
in the accounting policies and reasons for
to be performed by Members of the Board as a part of
the same, major accounting entries involving
good governance practice. The Board supervise the estimates based on exercise of judgement by
execution of responsibilities by the Committee. Minutes Management, significant adjustments made in
of the proceedings of all the Committee meetings are the financial statements.
circulated to the Board to take note of the same. The
• 
Review the Management’s Discussion and
Board Committees may request special invitees to join
Analysis of financial condition and results of
the meeting, as appropriate. operations.
• 
Scrutiny of inter-corporate loans and
As required under Schedule V (Annual Report) of the SEBI
investments.
(LODR) Regulations, mandatory disclosure(s) related
to the Audit, Risk Management and Ethics Committee, • Evaluation of internal financial controls and risk
management systems.
Stakeholders’ Relationship Committee and Nomination
and Remuneration Committee are as follows: • Reviewing the functioning of the whistle blower/
vigil mechanism.
(i) Audit, Risk Management and Ethics Committee • Formulate a detailed risk management policy
The terms of reference and composition of the Audit, which shall include:
Risk Management and Ethics Committee satisfy the - 
Framework for identification of internal
requirements of Section 177 of the Act read with and external risks.
the Companies (Meetings of Board and its Powers) - 
Measures for risk mitigation including
Rules, 2014 and Regulations 18 and 21 of the SEBI systems and processes for internal control
(LODR) Regulations. of identified risks.


The brief terms of reference of Audit, Risk - Business continuity plan.
Management and Ethics Committee are as under: • 
Evaluate and review the risk management
• Oversight of the Company’s financial reporting plan, the risk management system, including
risk policy, risk process (risk identification,
process, examination of the financial statement
assessment, mitigation and monitoring), cyber
and the auditors’ report thereon and the
security processes and risk registers laid down
disclosure of its financial information to ensure
by the Management.
that its financial statements are correct,
sufficient and credible. • Recommendation for appointment, removal and
terms of remuneration of the Chief Risk Officer.
•  ecommendation for appointment, re-appointment
R
and replacement, remuneration and terms of The Audit, Risk Management and Ethics Committee met
appointment of auditors of the Company and 5(Five) times during the Financial Year 2024 on February
approval of payment for any other services 5, 2024, May 13, 2024, July 30, 2024, October 22, 2024
rendered by the auditors of the Company. and November 12, 2024.

Annual Report 2024 181

Composition of the Committee and attendance of the Investor Grievances / Complaints
Members at the meetings held during the Financial The details of the Investor Complaints received and
Year 2024: resolved during the Financial Year ended December 31,
Sl. Name Category Designation No. of 2024 are as follows:
No. Meetings
Opening No. of No. of No. of No. of
Attended
Balance complaints complaints complaints complaints
1. Dr. Ravi Independent Chairman 5/5
received resolved not solved pending
Gupta Director
to the
2. Ms. Rashmi Independent Member 5/5
satisfaction of
Dhariwal Director
shareholders
3. Ms. Sita Independent Member 5/5
Khosla Director 0 11 11 0 0

Note: Video/Tele-conferencing facility is offered to facilitate

Directors to participate in the meetings. To enable investors to share their grievance or
concern, Company has set up a dedicated e-mail ID
The Chief Risk Officer & Group Company Secretary acts complianceofficer@rjcorp.in.
as Secretary to the Committee.
(iii) Nomination and Remuneration Committee
The Chairman of the Audit, Risk Management and The terms of reference and composition of the
Ethics Committee was present at the last AGM held on Nomination and Remuneration Committee satisfy
April 3, 2024. the requirements of Section 178 of the Act and
Regulation 19 of SEBI (LODR) Regulations and SEBI
(ii) Stakeholders’ Relationship Committee (Share Based Employee Benefits and Sweat Equity)
The terms of reference and composition of the Regulations, 2021.
Stakeholders’ Relationship Committee satisfy the
The brief terms of reference of Nomination and
requirements of Section 178 of the Act and Regulation
Remuneration Committee are as under:
20 of SEBI (LODR) Regulations.
• 
Formulating the criteria for determining

The brief terms of reference of Stakeholders’ qualifications, positive attributes and
Relationship Committee are to consider and resolve independence of a director and recommending
the grievances of security holders of the Company to the Board of Directors a policy relating to the
including but not limited to complaints related remuneration of the directors, key managerial
to transfer/transmission of shares, non-receipt of personnel and other employees and for
annual report, non-receipt of declared dividends evaluation of the performance of independent
and review of services rendered by the Registrar and directors and the Board of Directors;
Share Transfer Agent.
• Devising a policy on diversity of the Board of
Composition of the Committee during the Financial Directors;
Year 2024: • Identifying persons who are qualified to become
Sl. Name Category Designation directors and who may be appointed in senior
No. management in accordance with the criteria laid
1. Ms. Sita Khosla Independent Chairperson down, recommending to the Board of Directors
Director their appointment and removal, and specify the
2. Ms. Rashmi Independent Member manner for effective evaluation of performance
Dhariwal Director of Board, its committees and individual Directors
3. Mr. Raj Gandhi Executive Director Member and review its implementation and compliance;
Note: Video/Tele-conferencing facility is offered to facilitate • Determine whether to extend or continue the term
Directors to participate in the meetings.
of appointment of the independent directors on
the basis of the report of performance evaluation
The Chief Risk Officer & Group Company Secretary acts
of independent directors; and
as Secretary to the Committee and also designated as a
Compliance Officer of the Company. • Framing suitable policies and systems to ensure
that there is no violation by an employee as well
The Chairperson of the Stakeholders’ Relationship
as by the Company of any applicable laws in
Committee was present at the last AGM held on
India or overseas, including:
April 3, 2024.

182 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(i) The Securities and Exchange Board of India The Chief Risk Officer & Group Company Secretary acts
(Prohibition of Insider Trading) Regulations, as Secretary to the Committee.
2015; and
The Chairperson of the Nomination and Remuneration
(ii) The Securities and Exchange Board of India
Committee was present at the last AGM held on
(Prohibition of Fraudulent and Unfair Trade
April 3, 2024.
Practices relating to the Securities Market)
Regulations, 2003.
Performance evaluation criteria for Directors

The Nomination and Remuneration Committee met 5 The Remuneration Policy of the Company lays down
(Five) times during the Financial Year 2024 on February the criteria of appointment and remuneration of
5, 2024, March 7, 2024, May 13, 2024, September 16, 2024 Directors/Key Managerial Personnel including criteria
and September 27, 2024. for determining qualification, positive attributes,
independence of Directors, criteria for performance
Composition of the Committee and attendance of the evaluation of Executive and Non-executive Directors
Members at the meetings held during the Financial (including Independent Directors) and other matters as
Year 2024: prescribed under the provisions of the Act and the SEBI
(LODR) Regulations. An indicative list of factors that may
Sl. Name Category Designation No. of
be evaluated including but not limited to participation
No. Meetings
Attended and contribution by a Director, commitment, effective
1. Ms. Rashmi Independent Chairperson 3/5 deployment of knowledge and expertise, effective
Dhariwal Director management of relationship with stakeholders, integrity
2. Dr. Ravi Independent Member 5/5 and maintenance of confidentiality and independence of
Gupta Director
behaviour and judgement.
3. Mr. Ravi Non-executive Member 4/5
Jaipuria Chairman
Note: Video/Tele-conferencing facility is offered to facilitate
Directors to participate in the meetings.

Remuneration of Directors
Details of remuneration paid to Directors of the Company for the Financial Year ended December 31, 2024, are as follows:
(` in million)
Sl. Name Sitting Fee Salary Perquisite Bonus/Incentive Total
No.
1. Mr. Varun Jaipuria - 72.02 0.04 - 72.06
2. Mr. Raj Gandhi - 55.33 3.26 11.85 70.44
3. Mr. Rajinder Jeet Singh Bagga - 61.56 3.40 - 64.96
4. Dr. Ravi Gupta 2.20 - - - 2.20
5. Ms. Rashmi Dhariwal 2.90 - - - 2.90
6. Ms. Sita Khosla 1.70 - - - 1.70
7. Mr. Abhiram Seth 0.60 - - - 0.60
8. Mr. Anil Kumar Sondhi 0.80 - - - 0.80

The details of specific service contracts, notice period Criteria of making payments to Non-executive
and severance fees etc. are governed by the appointment Directors including all pecuniary relationship or
letter issued to respective Director at the time of his/her transactions of Non-executive Directors
appointment/re-appointment. The Independent Directors are not paid any remuneration
other than the sitting fee for attending meetings of
During the Financial Year 2024, no loans and advances the Board and the Committees thereof as approved by
in the nature of loans to firms/companies in which the Board.
directors are interested was given by the Company and
There has been no pecuniary relationship or transactions
its subsidiaries.
of the Non-executive Directors vis-à-vis the Company
during the year except the sitting fee paid to them as
detailed above.

Annual Report 2024 183

Prohibition of Insider Trading regarding any irregularity, misconduct or unethical
To comply with the provisions of Regulation 9 of the matters/ dealings within the Company, which may have
Securities and Exchange Board of India (Prohibition of a negative bearing on the organization either financially
Insider Trading) Regulations, 2015, the Company has or otherwise.
adopted a Code of Conduct for Prohibition of Insider
Trading and the same is uploaded on website of the This policy provides an additional channel to the normal
Company at https://www.varunbeverages.com/wp- management hierarchy for employees to raise concerns
content/uploads/2024/12/Insider-Trading-Code.pdf about any breach of the Company’s values or instances of
violations of the Company’s Code of Conduct. Therefore,
Vigil Mechanism / Whistle Blower Policy it is in line with the Company’s commitment to open
communication and to highlight any such matters which
To comply with the provisions of Section 177 of the Act and
may not be getting addressed in a proper manner.
Regulation 22 of SEBI (LODR) Regulations, the Company
During the year under review, no complaint was received
has adopted a Vigil Mechanism / Whistle Blower Policy for
under the Vigil Mechanism / Whistle Blower Policy of
Directors and Employees of the Company. Under the Vigil
the Company. The Policy is uploaded on website of
Mechanism Policy, the protected disclosures can be made
the Company at https://www.varunbeverages.com/
by a victim through an e-mail or a letter to the Chief Risk
wp-content/uploads/2023/03/21-VIGIL-MECHANISM-
Officer & Group Company Secretary (‘Vigilance Officer’)
POLICY.pdf
or to the Chairperson of the Audit, Risk Management and
Ethics Committee.
Qualified Institutions Placement (QIP)
The Policy provides for adequate safeguards against During the year under review, in compliance with the
victimization of Directors and Employees who avail of provisions of SEBI (Issue of Capital and Disclosure
the vigil mechanism and also provides a direct access to Requirements) Regulations, 2018, SEBI (LODR)
the Vigilance Officer or the Chairperson of the Audit, Risk Regulations and Sections 42 & 62 of the Act and Rules
Management and Ethics Committee, in exceptional cases. made thereunder, the Company has issued and allotted
No personnel of the Company has been denied access to 132,743,362 Equity Shares of face value of ` 2/- each to
the Audit, Risk Management and Ethics Committee. the eligible Qualified Institutional Buyers at an issue price
of ` 565/- per Equity Share i.e. at a premium of ` 563/-
The main objective of this policy is to provide a per Equity Share aggregating to ` 7,500/- crore. Brief
platform to Directors and Employees to raise concerns summary of utilization of funds are as follows:

Sl. Particulars Amount as Amount Utilized

No. per Placement as on 31.12.2024
Document (` in crore)
(` in crore)

1. Repayment/ Prepayment, in part or in full of certain outstanding 5,600.00 5,047.55

borrowings availed by the company and /or one of its subsidiaries

2. For general corporate purposes and inorganic acquisitions 1,839.00 385.85

3. QIP Issue Expense 61.00 61.11*

Total 7,500.00 5,494.50

* incremental amount utilized through general corporate purposes allocated funds.

Compliance with the Code of Conduct On the basis of declarations received from Board Members
To comply with the provisions of Regulation 17(5) of and Senior Management Personnel, the Executive Vice
SEBI (LODR) Regulations, the Company has adopted Chairman & Whole-time Director has given a declaration
“Code of Conduct for Board of Directors and Senior that the Members of the Board of Directors and Senior
Management” (‘Code’). Code is available on website of the Management Personnel have affirmed compliance with
Company at https://varunbeverages.com/wp-content/ the Code during the Financial Year 2024. A copy of such
uploads/2023/03/19-Code-Of-Conduct-For-Board-Of- declaration is also attached with this report.
Directors-and-Senior-Management-Revised.pdf

184 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

General Body Meetings

Annual General Meeting
The Annual General Meetings (‘AGM’) of the Company during the preceding three years were held at the following
venue, date and time, wherein the following special resolutions were passed:
AGM Financial Day, Date & Venue/Mode Brief description of Special Resolutions
Year Time
29th 2023 Wednesday, Meeting held • Re-appointment of Mr. Raj Gandhi (DIN: 00003649) as a
April 3, through Video Whole-time Director of the Company
2024 at Conferencing/
• Appointment of Dr. Naresh Trehan (DIN: 00012148) as a
11:00 a.m. Other Audio
Non-executive Non-Independent Director of the Company
Visual Means
Facility
Deemed Venue:
Registered Office
28th 2022 Monday, Meeting held • R
 e-appointment of Ms. Sita Khosla (DIN: 01001803) as an
March 27, through Video Independent Director of the Company for a second term
2023 at Conferencing /
• R
 e-appointment of Dr. Ravi Gupta (DIN: 00023487) as an
11:00 a.m. Other
Independent Director of the Company for a second term
Audio Visual
Means • R
 e-appointment of Ms. Rashmi Dhariwal (DIN: 00337814) as an
Facility Independent Director of the Company for a second term
Deemed Venue:
Registered Office
27th 2021 Thursday, Meeting held • P
 ayment of profit related commission to Non-executive
April 7, 2022 through Video Directors
at 11:00 a.m. Conferencing/ • Amendments in the ‘Employees Stock Option Scheme 2016’ of
Other Audio the Company
Visual Means
• Grant of stock options to the employees of holding, subsidiary,
Facility
group or associate company(ies) of the Company under the
Deemed Venue: ‘Employees Stock Option Scheme 2016’
Registered Office

Extra-ordinary General Meeting the Rules made thereunder and General Circulars
issued by Ministry of Corporate Affairs, the postal
Apart from AGM, no other General Meeting was held
ballot notice dated October 9, 2024 was dispatched
during the Financial Year 2024.
on Wednesday, October 9, 2024 containing draft
resolution together with the explanatory statement
Postal Ballot
and remote e-voting instructions through electronic
No special resolution is proposed to be conducted
mode to all those Members whose e-mail address
through postal ballot.
were registered with the Company/Registrar
During the year under review, pursuant to Regulation 44 of and Share Transfer Agent (“RTA”) or Depository/
SEBI (LODR) Regulations and Sections 108, 110 and other Depository Participants and whose names appeared
applicable provisions of the Act read with Rules made in the Register of Members of the Company or in
thereunder, Members of the Company approved following the Register of Beneficial Owners maintained by
matters by way of special resolution through postal ballot the Depositories as on Friday, October 4, 2024. The
dated October 9, 2024: Company also published notice in the newspapers
declaring details of completion of dispatch on
Sl. Type of Brief description of Resolutions Thursday, October 10, 2024 as mandated under the
No. Resolution Act and applicable rules.
1. Special Raising of funds by way of issuance
Resolution of Equity Shares through Qualified 2. 
Members were requested to cast their vote only
Institutions Placement (QIP) through remote e-voting facility provided by
National Securities Depository Limited (“NSDL”)
Procedure followed for postal ballot between Thursday, October 10, 2024 (9:00 A.M. IST)
1. 
In compliance with Regulation 44 of the SEBI and Friday, November 8, 2024 (5.00 P.M. IST) (both
days inclusive) on the draft resolutions mentioned in
(LODR) Regulations and Sections 108, 110 and
the postal ballot notice.
other applicable provisions of the Act read with

Annual Report 2024 185

3. 
The Scrutinizer, Mr. Kapil Dev Taneja, Partner of Report also forms part of the Annual Report. The Company
M/s. Sanjay Grover & Associates, Company is disseminating all reports / information including
Secretaries, New Delhi submitted his report on Quarterly Financial Results, Shareholding Pattern and
November 9, 2024, after completion of the scrutiny. Corporate Governance Report etc., electronically on NSE
website viz. www.nseindia.com and on BSE website viz.
4. 
The result of the postal ballot was announced by www.bseindia.com.
Mr. Ravi Batra, Chief Risk Officer & Group Company
Secretary on November 9, 2024. The last date of General Shareholders Information
remote e-voting i.e. Friday, November 8, 2024, was A) Annual General Meeting
taken as the date of passing the resolutions. Date: April 3, 2025 (Thursday)

5. 
The result of the postal ballot along with the Time: 11:00 a.m. (IST)
scrutinizer’s report was displayed at the registered Venue/Mode: Through Video Conferencing / Other
office of the Company, hosted at the Company’s Audio Visual Means facility
website at www.varunbeverages.com and on the
website of NSDL at https://www.evoting.nsdl.com B) Financial Year
and was also communicated to the Stock Exchanges. The Financial Year of the Company starts from
January 1 and ends on December 31 every year.
6. The consolidated summary of the result is as under:

Item Net Valid Votes in Votes C) Financial Calendar 2025

Votes favour of the against the First Quarter Results : On or before May 15, 2025
Cast (No. Resolution Resolution Second Quarter Results : 
On or before August 14,
of Equity (No. of (No. of 2025
Shares) Equity Equity
Third Quarter Results : On or before November 14,
Shares and Shares
2025
% of Net and % of
Audited Annual Results
Valid Votes) Net Valid
for the year ending on
Votes)
December 31, 2025 : On or before March 1, 2026
Special Resolution 2,83,48,57,439 2,82,85,92,815 62,64,624
for raising of (99.78%) (0.22%) D) Dividend and its Payment
funds by way The Shareholders of the Company at their Annual
of issuance of General Meeting held on April 3, 2024 approved
Equity Shares Final dividend of ` 1.25 per Equity Share (face value
through Qualified of ` 5/- per Equity Share) for the Financial Year 2023
Institutions to the eligible equity shareholders of the Company.
Placement (QIP)
During the year under review, the Board of Directors
Means of Communication in their meeting held on July 30, 2024 declared an
Information like Quarterly / Half Yearly / Annual Financial interim dividend of ` 1.25 per Equity Share (face
Results and press releases / presentations on significant value of ` 5/- per Equity Share) to the eligible equity
developments in the Company that have been made shareholders of the Company. Further, the Board of
available from time to time have been submitted with the Directors have also recommended a final dividend
of ` 0.50 per Equity Share (face value of ` 2/- per
Stock Exchanges to enable them to put on their websites
Equity Share) for the Financial Year 2024. Total cash
and communicate the Members. The same is also made
outflow for dividend payout would be ~` 3,315.06
available to Institutional Investors or to the Analysts (if
million for the Financial Year 2024.
any) and are also hosted on the Company’s website at
https://varunbeverages.com.
The Company has transferred the unpaid/unclaimed
Dividend (Interim & Final) to the Unclaimed Dividend
The Quarterly / Half Yearly / Annual Financial Results
Account – Varun Beverages Limited and the details
are published in English and Hindi language newspapers
of previous unpaid and unclaimed dividend amount
normally in Economic Times and Jansatta, respectively.
lying in the said Accounts are uploaded on website
Moreover, a report on Management Discussion & Analysis
of the Company at https://varunbeverages.com/
as well as Business Responsibility and Sustainability
corporate-governance/

186 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Investor Education and Protection Fund E) 

Listing of Shares on Stock Exchanges and Stock
Pursuant to the provisions of Section 124 of the Act, Code
Investor Education and Protection Fund Authority Sl. Name and Address of the Stock Stock
(Accounting, Audit, Transfer and Refund) Rules, No. Exchange code
2016 (‘IEPF Rules’) read with relevant circulars and
amendments thereto, amount of dividend which 1. National Stock Exchange of India VBL
remains unpaid/unclaimed for a period of seven Limited, Exchange Plaza, Block G, C/1,
years from the date of transfer to the Company’s Bandra Kurla Complex, Bandra (E),
unpaid dividend account and corresponding Mumbai – 400 051
shares on which the dividend remains unclaimed 2. BSE Limited, Phiroze Jeejeebhoy 540180
for seven consecutive years or more are required Towers, Dalal Street, Mumbai – 400 001
to be transferred to the Investor Education and
Protection Fund (“IEPF”) constituted by the ISIN of the Company changed from “INE200M01021”
Central Government. Accordingly, your Company to “INE200M01039” on account of sub-division/split
had transferred ` 45,375/- to IEPF (being unpaid/ of equity shares of the Company during the year
unclaimed interim dividend amount for FY 2017) and under review.
also transferred 299 equity shares (on which interim Annual listing fee for the Financial Year 2024-25 has
dividend for FY 2017 remained unpaid/unclaimed for been paid to the National Stock Exchange of India
seven consecutive years) to the designated demat Limited and BSE Limited.
account of IEPF Authority and the same can be
claimed from IEPF Authority only after complying F) 
Listing of Debt Instruments on Stock Exchanges
with prescribed procedure under IEPF Rules. and Codes: N.A.

G) Market Price Data for the period January 1, 2024 to December 31, 2024

Month BSE NSE

High (`) Low (`) Volume (Nos.) High (`) Low (`) Volume (Nos.)

Jan-24 1,309.00 1,196.20 45,79,708 1,309.95 1,196.40 4,15,10,281

Feb-24 1,560.30 1,260.65 20,45,399 1,561.95 1,260.00 4,59,94,776

Mar-24 1,494.95 1,354.50 26,74,158 1,495.00 1,354.20 3,76,48,378

Apr-24 1,544.00 1,322.05 22,35,341 1,544.95 1,349.70 4,05,20,708

May-24 1,558.45 1,390.20 23,89,294 1,559.00 1,390.25 4,82,55,801

Jun-24 1,673.70 1,321.00 18,94,069 1,672.00 1,320.05 4,29,34,587

Jul-24 1,707.10 1,507.00 25,13,738 1,702.80 1,507.75 4,90,51,994

Aug-24 1,610.00 1,413.00 29,41,179 1,609.45 1,412.50 4,49,11,316

Sep-24 1,588.60 602.30 47,77,561 1,589.30 602.25 9,28,08,995

Oct-24 632.00 537.80 69,74,600 631.20 536.85 15,16,83,542

Nov-24 639.55 565.00 57,47,765 639.60 565.00 10,71,58,689

Dec-24 661.70 600.00 37,11,522 662.00 598.80 12,23,17,911

Note: Share prices after September 11, 2024 (i.e. ex-Split date) reflects the impact of Stock Split i.e. 2 (Two) equity shares having
face value of ` 5/- (Rupees Five only) each fully paid-up, was sub-divided/split into 5 (Five) equity shares having face value of
` 2/- (Rupees Two only) each fully paid-up, on September 12, 2024.

Annual Report 2024 187

Performance in comparison to broad - based indices
Performance on BSE
Comparison of share price of VBL with BSE Sensex.

Performance on BSE (Indexed)

140.00
120.00

100.00

80.00

60.00

40.00

20.00

–
4 24 4 4 4 4 24
-2 24 -2 -2 24 -2 24 -2 -2
4
v- -2
4
n b- ar
- r
ay un
-
Ju
l g- p ct c
Ja Fe M Ap M J Au Se O N o
De

BSE Sensex VBL BSE

Jan'24 Feb'24 Mar'24 Apr'24 May'24 Jun'24 Jul'24 Aug'24 Sep'24 Oct'24 Nov'24 Dec'24
VBL BSE 103.52 113.91 113.06 119.61 115.28 131.80 127.59 121.38 122.56 120.93 125.55 129.08
BSE Sensex 99.32 100.36 101.95 103.10 102.38 109.40 113.15 114.02 116.69 109.90 110.47 108.17

Performance on NSE
Comparison of share price of VBL with NSE Nifty.

Performance on NSE (Indexed)

150.00

100.00

50.00

24 -2
4 4 24 -2
4 24 l-2
4
-2
4 24 -2
4 24 -2
4
n- b -2 r-
ay n- p- ct v-
Ja Fe ar Ap Ju g
Se No
c
M M Ju Au O De

NSE Nifty VBL NSE

Jan'24 Feb'24 Mar'24 Apr'24 May'24 Jun'24 Jul'24 Aug'24 Sep'24 Oct'24 Nov'24 Dec'24
VBL NSE 103.52 113.87 113.07 119.61 115.35 131.74 127.53 121.34 122.54 120.82 125.56 129.05
NSE Nifty 99.97 101.16 102.74 104.02 103.68 110.49 114.82 116.13 118.77 111.38 111.04 108.80

188 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

H) Registrar and Share Transfer Agent Hundred Two) equity shares of the Company were in
All the work relating to the shares held in physical dematerialized form and 8,215 (Eight Thousand Two
form as well as the shares held in the electronic Hundred Fifteen) equity shares were in physical form
(demat) form is being done by KFin Technologies as on December 31, 2024.
Limited, whose details are given below:
Transfer of Equity Shares in dematerialized form are
KFin Technologies Limited done through depositories with no involvement of
Selenium Building, Tower-B, Plot No. 31 & 32, the Company. In terms of SEBI (LODR) Regulations,
Financial District, Nanakramguda, Serilingampally, securities of listed companies can only be transferred
Hyderabad - 500 032, Telangana, India. in dematerialized form including where the claim is
Toll Free No.: 1800 309 4001 lodged for transmission or transposition of shares.
E-mail: einward.ris@kfintech.com Company obtains a yearly certificate from a Company
Website: www.kfintech.com Secretary in Practice as required under Regulation
SEBI Registration No.: INR000000221 40(9) of SEBI (LODR) Regulations and files copy of the
CIN L72400TG2017PLC117649 said certificate with the Stock Exchanges.

I) Share Transfer System 

Accordingly, to avail benefits of dematerialization,
3,381,501,802 (Three Billion Three Hundred Eighty Members are advised to dematerialize the shares held
One Million Five Hundred One Thousand Eight by them in physical form.

J) Distribution of Shareholding (as on December 31, 2024)

(Nominal Value ` 2 per share)
Shareholding No. of Shareholders Percentage Amount (`) Percentage
1 – 5000 757,472 98.72 196,495,690 2.90
5001 – 10000 4,461 0.58 31,570,742 0.47
10001 - 20000 2,233 0.29 31,645,952 0.47
20001 - 30000 719 0.09 17,694,918 0.26
30001 – 40000 344 0.05 11,905,722 0.18
40001 - 50000 239 0.03 10,813,504 0.16
50001 - 100000 483 0.06 34,210,020 0.50
100001 & Above 1,346 0.18 6,428,683,486 95.06
Total 767,297 100.00 6,763,020,034 100.00

K) Categories of Shareholders (as on December 31, 2024)

Sl. No. Description No. of Equity Shares Percentage
1. Alternative Investment Fund 12,800,127 0.38
2. Body Corporates 41,780,420 1.24
3. Banks 1,788,255 0.05
4. Central Government 87 0.00
5. Clearing Members 100,925 0.00
6. Directors and their Relatives (Other than Promoter Director) 8,028,037 0.25
7. Employees 3,360,043 0.10
8. Foreign Institutional Investors 4,000 0.00
9. Foreign Portfolio Investors – Corporates 854,259,385 25.26
10. HUF 5,170,419 0.15
11. IEPF 299 0.00
12. Mutual Funds 138,104,378 4.08
13. NBFC 76,099 0.00
14. Non Resident Indians 6,823,296 0.20
15. Non Resident Indian Non Repatriable 5,433,422 0.16
16. Promoter Group 81,242,482 2.40
17. Promoter (Company) 868,877,060 25.69
18. Promoter (Individuals) 1,085,596,092 32.11
19. Qualified Institutional Buyer 84,485,803 2.50
20. Resident Individuals 183,316,108 5.42
21. Trusts 263,280 0.01
Total 3,381,510,017 100.00

Annual Report 2024 189

L) Dematerialization of Shares and Liquidity R) 
Certification under Regulation 17(8) of SEBI
As on December 31, 2024, 99.99% of the total paid-up (LODR) Regulations
equity shares were held in dematerialized form. The To comply with Regulation 17(8) of SEBI (LODR)
Company’s shares are actively traded on the stock Regulations, the Whole-time Director and the Chief
exchanges. There was no instance of suspension of Financial Officer (CFO) of the Company have given
trading in the equity shares of the Company during Compliance Certificate stating therein matters
the Financial Year 2024. prescribed under Part B of Schedule II of the said
Regulations which forms part of this Corporate
The Company does not have any GDR’s/ADR’s/ Governance Report.
Warrants or any Convertible instruments having any
impact on equity. To comply with Regulation 33(2)(a) of SEBI (LODR)
Regulations, while placing the Quarterly Financial
M) Commodity price risk or foreign exchange risk Results before the Board of Directors, the Whole-
and hedging activities time Director and CFO certifies that the Financial
The details for the same have been provided in the Results do not contain any false or misleading
Notes to Financial Statements of the Company for statement or figures or do not omit any material
the Financial Year 2024. fact which may make the statements or figures
contained therein misleading.
N) Credit Rating
During the year under review, your Company’s credit S) Certificate from Company Secretary in Practice
rating by CRISIL is as below: regarding Non-disqualification of Directors

None of the Directors on the Board of the
Long Term Rating CRISIL AA+/Stable (Re-affirmed) Company have been debarred or disqualified
Short Term Rating CRISIL A1+ (Re-affirmed)
from appointment or continuing as Directors of
companies by the Securities and Exchange Board of
India, Ministry of Corporate Affairs or any such other
O) Plant locations
Statutory Authority, as stipulated under Regulation
The Plant locations have been provided at page no. 34 of the SEBI (LODR) Regulations and certificate in
19 of the Annual Report. this respect received from an Independent Firm of
Practising Company Secretaries is annexed.
P) Reconciliation of Share Capital Audit

The Reconciliation of Share Capital Audit is T) Fees paid to the Statutory Auditors
conducted by a Company Secretary in practice to Total fees for all services paid by the Company and
reconcile the total admitted capital with National its subsidiaries, on a consolidated basis, to Statutory
Securities Depository Limited and Central Depository Auditors of the Company and their other associated
Services (India) Limited (‘Depositories’) and the firms during the Financial Year ended December 31,
total issued and listed capital. The audit confirms 2024, is as follows:
that the total issued/ paid-up capital is in agreement
(` in Million)
with the aggregate of the total number of shares
in physical form and the total number of shares in Particulars M/s. J C M/s. O P Bagla &
dematerialized form (held with Depositories) and Bhalla & Co. Co. LLP
that the requests for dematerialization of shares Audit Fee 7.00 6.78*
are processed by the Registrar and Share Transfer
Agent within statutory period and uploaded with the Other Services - 4.76*
concerned depositories. Reimbursement 0.92 0.02
of Expenses
Q) Compliances under SEBI (LODR) Regulations
Total 7.92 11.56

The Company is regularly complying with the
SEBI (LODR) Regulations as stipulated therein. *includes ` 0.41 million paid by Lunarmech Technologies
Private Limited, Subsidiary Company.
Information, reports, certificates and returns as
required under the provisions of SEBI (LODR)
Regulations are sent to the stock exchanges within
the prescribed time.

190 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

U) 
Information on Deviation from Accounting 
The Company submits a quarterly compliance
Standards, if any report on Corporate Governance signed by
No deviations from Indian Accounting Standard Compliance Officer to the Stock Exchanges within
(Ind AS) in preparation of annual accounts for the prescribed timelines from the close of every
Financial Year 2024. quarter. Such quarterly compliance reports on
Corporate Governance are also posted on website of
V) Investor Correspondence the Company.

Mr. Ravi Batra


Compliance of the conditions of Corporate
Chief Risk Officer & Group Company Secretary
Governance have also been audited by an Independent
Plot No. 31, Institutional Area, Sector - 44,
Firm of Practising Company Secretaries and after
Gurugram 122 002 (Haryana)
being satisfied of the above compliances, they have
Tel: +91 124 4643100
issued a compliance certificate in this respect. The
E-mail: complianceofficer@rjcorp.in
said certificate is annexed with this report and the
same will be forwarded to the Stock Exchanges along
W) 
Disclosure of Compliance with Corporate
with the Annual Report of the Company.
Governance requirements specified in Regulation
17 to 27 and Regulation 46 of SEBI (LODR)
X) Information of Senior Management Personnel
Regulations
Details of Senior Management Personnel (including
The Company has complied with the applicable
changes therein) as on December 31, 2024 as
provisions of SEBI (LODR) Regulations including
defined under Regulation 16(1)(d) of SEBI (LODR)
Regulations 17 to 27 and Regulation 46 of SEBI
Regulations are as follows:
(LODR) Regulations.

Sl. No. Name Designation

1. Mr. Varun Jaipuria Executive Vice Chairman & Whole-time Director
2. Mr. Raj Gandhi Whole-time Director
3. Mr. Rajinder Jeet Singh Bagga Whole-time Director
4. Mr. Vivek Gupta Executive Director (Non-Board Member)
5. Mr. Rajeshwar Tripathi* Group Chief Human Resources Officer
6. Mr. Vikas Bhatia Group – Environment, Social & Governance Head
7. Mr. Kamlesh Kumar Jain Executive Director & Chief Operating Officer (International)
(Non-Board Member)
8. Mr. Saurabh Agrawal Chief Strategy Officer
9. Ms. Devyani Kiran Khankhoje President - Corporate Affairs
10. Mr. Ravi Batra Chief Risk Officer & Group Company Secretary
11. Mr. Manmohan Rupal Paul Chief Operating Officer
12. Mr. Sumit Luthra Chief Operating Officer
13. Mr. Vishwas Agarwal Chief Operating Officer
14. Mr. Deepak Sharma Chief Operating Officer
15. Mr. Pradeep Kumar Goyal Regional Chief Financial Officer
16. Mr. Rishi Kumar Agarwal Regional Chief Financial Officer
17. Mr. Deepak Dabas Senior Vice President – Investor Relations
18. Mr. Rajesh Chawla** Chief Financial Officer
19. Mr. Rohit Vishal Gupta Chief Human Resources Officer
20. Mr. Kamal Karnatak Senior Vice President
21. Mr. Sudin Kumar Gaunker Chief Operating Officer
22. Mr. Rajesh Kumar Technical Head - India Operations
23. Mr. Sanjay Mukherjee Chief Supply Chain Officer
24. Mr. Sharad Kumar Garg Senior Vice President – Procurement
25. Mr. Ganesh Kumar Velu Senior Vice President
26. Mr. Suresh Ramakrishnan Panicker Senior Vice President & Head - Organized Trade
27. Mr. M J Faridi Market Unit General Manager
*appointed w.e.f. June 3, 2024.
**appointed w.e.f. May 14, 2024.

During the year under review, Ms. Meeru G Gupta, Mr. Parag Prabhakar Paranjpe and Mr. Lalit Malik were
disassociated from the Company w.e.f. March 16, 2024, March 31, 2024 and May 13, 2024 respectively.

Annual Report 2024 191

Other Disclosures Green Initiative
(i) 
The Company has not entered into any material Pursuant to Sections 101 and 136 of the Act read with
significant related party transaction which has the Companies (Management and Administration)
potential conflict with the interests of the Company Rules, 2014 and Companies (Accounts) Rules, 2014 and
at large. The Board of Directors had approved a Regulation 36 of SEBI (LODR) Regulations, the Company
Policy on Related Party Transactions and the same can send Notice of AGM, Financial Statements and other
is uploaded at https://www.varunbeverages.com/ communication to the shareholders in electronic form.
policies/policy-on-related-party-transactions.pdf
Your Company is sending the Annual Report including
(ii) The Company has complied with the requirements the Notice of AGM, Audited Financial Statements, Board’s
of Stock Exchanges, SEBI and other statutory Report along with their annexure etc. for the Financial
authorities on all matters relating to capital markets Year 2024 in electronic mode to the shareholders who
and there was no instance of non-compliance during have registered their e-mail addresses with the Company
the last three years and is compliant of all the or their respective Depository Participants (DPs).
applicable provisions of SEBI (LODR) Regulations.
Shareholders who have not registered their e-mail
(iii) Policy for Determination of Material Subsidiary and addresses so far are requested to register their e-mail
Governance of Subsidiaries can be accessed at addresses. Those holding shares in demat form can
https://www.varunbeverages.com/policies/policy- register their e-mail addresses with their concerned
on-material-subsidiary-VBL.pdf DPs. Shareholders who hold shares in physical form are
requested to register their e-mail addresses with the
Further, as on December 31, 2024, none of the Company / RTA, by sending a letter, duly signed by the
subsidiary was a material subsidiary of the Company. first/sole holder quoting details of Folio Number.

(iv) 
Disclosure in relation to the Sexual Harassment For and on behalf of the Board of Directors
of Women at Workplace (Prevention, Prohibition For Varun Beverages Limited
and Redressal) Act, 2013 forms part of the Board’s
Report. Date: February 10, 2025 Ravi Jaipuria
Place: Gurugram Chairman
(v) 
Company does not have any share in the demat DIN: 00003668
suspense account or unclaimed suspense account as
on December 31, 2024.

(vi) 
There are no agreement(s) with any party which
would impact the management or control of the
Company or impose any restriction or create any
liability upon the Company.

192 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

CODE OF CONDUCT

This is to certify that the Company has laid down a Code of Conduct (the Code) for all Board Members and
Senior Management Personnel of the Company and a copy of the Code is available on website of the Company viz.
www.varunbeverages.com.

It is further confirmed that all the Directors and Senior Management Personnel have affirmed their compliance with the
Code for the Financial Year ended December 31, 2024.

Varun Jaipuria
Date: February 10, 2025 Executive Vice Chairman &
Place: Gurugram Whole-time Director
 DIN: 02465412

Annual Report 2024 193

CERTIFICATION UNDER REGULATION 17(8) OF SEBI (LISTING OBLIGATIONS
AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

To
The Board of Directors,
Varun Beverages Limited

We, Raj Gandhi, Whole-time Director and Rajesh Chawla, Chief Financial Officer of Varun Beverages Limited, pursuant
to the requirement of Regulation 17(8) of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and to the best of our knowledge and belief, hereby certify that:-

A) We have reviewed Financial Statements and the Cash Flow Statement for the Financial Year ended December 31,
2024 and that to the best of our knowledge and belief:

(i) 
these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading; and

(ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with
existing accounting standards, applicable laws and regulations.

B) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the
Financial Year ended December 31, 2024 which are fraudulent, illegal or violative of the Company’s Code
of Conduct.

C) We accept the responsibility for establishing and maintaining internal controls for financial reporting and that we
have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and
that we have disclosed to the Auditors and the Audit, Risk Management and Ethics Committee, deficiencies in the
design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose
to take to rectify these deficiencies.

D) We have indicated to the Auditors and the Audit, Risk Management and Ethics Committee:

(i) significant changes in internal control over financial reporting during the Financial Year ended December 31,
2024;

(ii) 
significant changes in accounting policies during the said Financial Year and that the same have been
disclosed in the notes to the Financial Statements; and

(iii) 
instances of significant fraud of which we have become aware and the involvement therein, if any, of
the management or an employee having a significant role in the Company’s internal control system over
financial reporting.

Raj Gandhi Rajesh Chawla

Date: February 10, 2025 Whole-time Director Chief Financial Officer
Place: Gurugram DIN: 00003649

194 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) read with Clause (10)(i) of Para C of Schedule V to the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]

To,
The Members
Varun Beverages Limited
(CIN: L74899DL1995PLC069839)
F-2/7, Okhla Industrial Area, Phase I,
New Delhi - 110020

1. The equity shares of Varun Beverages Limited (‘the Company’) are listed on National Stock Exchange of India
Limited and BSE Limited.

2. We have examined the relevant disclosures received from the Directors of the Company and registers, records,
forms and returns maintained by the Company and produced before us by the Company for the purpose of
issuing this Certificate, in accordance with Regulation 34(3) read with Clause 10(i) of Para C of Schedule V of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3. 
We have also done examination and verification of the disclosures under Sections 184, 189, 164 and 149 of
the Companies Act, 2013 (the Act) received from the Directors and Register of Directors and Key Managerial
Personnel and their Shareholding under Section 170 of the Act and Director Identification Number (DIN) status of
the Directors at MCA portal i.e. www.mca.gov.in. In our opinion and to the best of our knowledge and on the basis
of information furnished to us by the Company and its officers, we certify that none of the below named Directors
of the Company have been debarred or disqualified from being appointed or continuing as directors of companies
by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such statutory authority as on
December 31, 2024:
Sr. No. Name of Director DIN Date of Appointment
1. Mr. Ravi Jaipuria 00003668 16/06/1995
2. Mr. Varun Jaipuria 02465412 01/01/2009
3. Mr. Raj Gandhi 00003649 21/10/2004
4. Mr. Rajinder Jeet Singh Bagga 08440479 02/05/2019
5. Dr. Naresh Trehan 00012148 21/04/2024
6. Dr. Ravi Gupta 00023487 19/03/2018
7. Ms. Rashmi Dhariwal 00337814 19/03/2018
8. Ms. Sita Khosla 01001803 16/02/2018
9. Mr. Abhiram Seth 00176144 02/05/2023
10. Mr. Anil Kumar Sondhi 00696535 02/05/2023

4. Ensuring the eligibility of the appointment/ continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification. This
certificate is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with
which the management has conducted the affairs of the Company.

5. This certificate is based on the information and records available as on December 31, 2024 and we have no
responsibility to update this certificate for the events and circumstances occurring thereafter.

For Sanjay Grover & Associates

Company Secretaries
Firm Registration No.: P2001DE052900
Peer Review Certificate No.: 6311/2024

Kapil Dev Taneja

Partner
Place: New Delhi CP No.: 22944 /Mem. No. F4019
Date: February 10, 2025 UDIN.: F004019F003904729

Annual Report 2024 195

 CORPORATE GOVERNANCE CERTIFICATE

To,
The Members
Varun Beverages Limited
(CIN: L74899DL1995PLC069839)
F-2/7, Okhla Industrial Area, Phase I,
New Delhi - 110020

We have examined the compliance of conditions of Corporate Governance by Varun Beverages Limited
(‘the Company’), for the financial year ended on December 31, 2024 as stipulated under Regulations 17 to 27 and
clauses (b) to (i) of Regulation 46(2) and Para C, D and E of Schedule V to the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’).

The compliance of conditions of Corporate Governance is the responsibility of the management of the Company.
Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the
compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the
financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the
Company has complied with the conditions of Corporate Governance as stipulated under Regulations 17 to 27 and
clauses (b) to (i) of Regulation 46(2) and Para C, D and E of Schedule V to the Listing Regulations.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency
or effectiveness with which the management has conducted the affairs of the Company.

For Sanjay Grover & Associates

Company Secretaries
Firm Registration No.: P2001DE052900
Peer Review Certificate No.: 6311/2024

Kapil Dev Taneja

Partner
Place: New Delhi CP No.: 22944 /Mem. No. F4019
Date: February 10, 2025 UDIN.: F004019F003904663

196 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Business Responsibility and

Sustainability Report
Section A: General Disclosures
S. Particulars Details
No.
I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity L74899DL1995PLC069839
2. Name of the Listed Entity Varun Beverages Limited
3. Year of incorporation 1995
4. Registered office address F- 2/7, Okhla Industrial Area, Phase- I New Delhi - 110 020
5. Corporate address Plot No. 31, Sector 44, Institutional Area, Gurugram -
122 002, Haryana
6. E-mail complianceofficer@rjcorp.in
7. Telephone +91-124-4643100
8. Website www.varunbeverages.com
9. Financial year for which reporting is being done FY 2024
Start date End date
Current Financial Year - 2024 01-01-2024 31-12-2024
Previous Financial Year - 2023 01-01-2023 31-12-2023
Prior to Previous Financial year - 2022 01-01-2022 31-12-2022
10. Name of the Stock Exchange(s) where shares are National Stock Exchange of India Limited and BSE
listed Limited
11. Paid-up Capital ` 6,763.02 Million
12. Name and contact details (telephone, email address) Mr. Ravi Batra, Chief Risk Officer and Group Company
of the person who may be contacted in case of any Secretary
queries on the BRSR report +91-124-4643100
ravi.batra@rjcorp.in
13. Reporting boundary - Are the disclosures under this Standalone Basis
report made on a standalone basis (i.e. only for the
entity) or on a consolidated basis (i.e. for the entity and
all the entities which form a part of its consolidated
financial statements, taken together).
14 Whether the company has undertaken reasonable Yes
assurance of the BRSR Core?
15 Name of assurance provider DEKRA (India) Pvt. Ltd.
16 Type of assurance obtained Reasonable assurance for core KPIs and limited
assurance on other indicators.

II. Products/services
17. Details of business activities (accounting for 90% of the turnover): Year 2024

S. No. Description of Main Activity Description of Business Activity % of Turnover of the entity
1 Manufacturing of Beverages Manufacturing of Carbonated, 97.85%
(NIC Code - 1104) Non-carbonated beverages and
packaged drinking water

18. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover): Year 2024

S. Product/Service NIC Code % of Total Turnover Contributed

No.
1 Carbonated, Non-carbonated 1104 97.85%
beverages and packaged drinking water

Annual Report 2024 197

III. Operations
19. Number of locations where plants and/or operations/offices of the entity are situated: As on 31 December 2024
Location Number of plants Number of offices Total
National 36 plants for manufacturing of beverages and 1 Registered office, 108
3 plants for backward integration 1 Corporate office and 67 sales offices,
depots and warehouses
International serving through its subsidiaries - -

20. Markets served by the entity:

a. Number of locations: Year 2024

Locations Number
National (No. of States) 26 states and 6 union territories
International (No. of Countries) (serving through its subsidiaries) 13

b. What is the contribution of exports as a percentage of the total turnover of the entity?
1.19% of total turnover (` 1,706.64 Million)

c. A brief on types of customers

End consumers are individuals serviced through Distributors, Retailers, Modern Trade, Hotels, Restaurants, etc.

IV. Employees
21. Details : As on 31 December 2024

a. Employees and workers (including differently abled):

S. No. Particulars Total Male Female Others

(A) No. (B) % (B/A) No. (C) % (C/A) No. (D) % (D/A)
EMPLOYEES
1 Permanent (E) 7,487 6,838 91.33% 627 8.37% 22 0.29%
2 Other than Permanent (F) 7,341 7,091 96.59% 250 3.41% 0 0.00%
3 Total Employees (E+F) 14,828 13,929 93.94% 877 5.91% 22 0.15%
WORKERS
4 Permanent (G) 3,554 3,521 99.07% 33 0.93% 0 0.00%
5 Other than Permanent (H) 11,158 10,249 91.85% 883 7.91% 26 0.23%
6 Total workers (G+H) 14,712 13,770 93.60% 916 6.23% 26 0.18%

b. Differently abled Employees and workers:

S. No. Particulars Total Male Female Others

(A) No. (B) % (B/A) No. (C) % (C/A) No. (D) % (D/A)
DIFFERENTLY ABLED EMPLOYEES
1 Permanent (E) 2 2 100.00% 0 0.00% 0 0.00%
2 Other than Permanent (F) 27 26 96.30% 1 3.70% 0 0.00%
3 Total Differently Abled 29 28 96.55% 1 3.45% 0 0.00%
Employees (E+F)
DIFFERENTLY ABLED WORKERS
4 Permanent (G) 0 0 0.00% 0 0.00% 0 0.00%
5 Other than Permanent (H) 267 247 92.51% 20 7.49% 0 0.00%
6 Total Differently abled 267 247 92.51% 20 7.49% 0 0.00%
workers (G+H)
* Workers number are on average basis for the reporting period

198 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

22. Participation/Inclusion/Representation of women: As on 31 December 2024

Particulars Total No. and percentage of Females

(A) No. (B) % (B/A)
Board of Directors 10 2 20%
Key Management Personnel 3* 0 0%
*includes one Board Member

23. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)

FY 2024 FY 2023 FY 2022

(Turnover rate (Turnover rate (Turnover rate in year prior to
in current FY) in previous FY) the previous FY)
Total Male Female Other Total Male Female Other Total Male Female Other
Permanent 20% 20% 9% 19% 15% 0% 20% 18% 0%
Employees
16% 14% 14%
Permanent 8% 3% 0% 4% 0% 0% 5% 3% 0%
Workers

V. Holding, Subsidiary and Associate Companies (including joint ventures)

24. (a) Names of holding / subsidiary / associate companies / joint ventures: As on 31 December 2024

S. Name of the holding/subsidiary/ Indicate % of shares Does the entity indicated at

No. associate/Companies/ whether held by listed column A, participate in the
Joint Ventures (A) holding/ entity Bussiness Responsibility
Subsidiary/ initiatives of the listed
Joint Venture entity ? (Yes/No)
1 Varun Beverages (Nepal) Private Limited Subsidiary 100.00% No
2 Varun Beverages Lanka (Private) Limited Subsidiary 100.00% No
3 Varun Beverages Morocco SA Subsidiary 100.00% No
4 Ole Springs Bottlers (Private) Limited Subsidiary 100.00% No
(step down subsidiary)
5 Varun Beverages (Zambia) Limited Subsidiary 90.00% No
6 Varun Beverages (Zimbabwe) (Private) Limited Subsidiary 85.00% No
7 Varun Beverages RDC SAS Subsidiary 99.90% No
8 Lunarmech Technologies Private Limited Subsidiary 100.00% No
9 Varun Beverages International DMCC Subsidiary 100.00% No
10 Varun Beverages South Africa (PTY) Ltd. Subsidiary 100.00% No
11 VBL Mozambique, SA Subsidiary 99.00% No
12 The Beverage Company Proprietary Limited Subsidiary 95.00% No
13 Varun Foods (Zimbabwe) (Private) Limited Subsidiary 100.00% No
14 The Beverage Company Bidco Proprietary Subsidiary 100.00% No
Limited (step down subsidiary)
15 Little Green Beverages Proprietary Limited Subsidiary 100.00% No
(step down subsidiary)
16 Softbev Proprietary Limited Subsidiary 100.00% No
(step down subsidiary)
17 Huoban Energy 7 Private Limited Associate 26.34% No
18 Clean Max Tav Private Limited Associate 26.00% No
19 IDVB Recycling Operations Private Limited Joint Venture 50.00% No

Annual Report 2024 199

VI. CSR Details
25. (i) Whether CSR is applicable as per Section 135 of Companies Act, 2013: Yes
(Yes/No)

(ii) Turnover (in `) (*Revenue from Operations) 143,486.00 (` in million) As on 31.12.2024

(iii) Net worth (in `) (*Net worth = Equity Share Capital + Other Equity) 165,587.05 (` in million) As on 31.12.2024

VII. Transparency and Disclosures Compliances

26. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business (NGRBC):

Stakeholder Grievance Redressal FY 2024 FY 2023

group from Mechanism in place (Yes/ (Current Financial Year) (Previous Financial Year)
whom No) (If Yes, then provide
Number of Number of Remarks Number of Number of Remarks
complaint is web-link for grievance
Complaints complaints Complaints complaints
received redress policy)
Filed pending Filed pending
during the resolution during the resolution
year at close of year at close of
the year the year
Communities Yes, we have strategically 0 0 – 0 0 –
placed our plant teams
at various plant locations
to ensure continuous
community engagement.
Furthermore, our individual
unit heads and HR heads
work closely with the
communities, fostering
strong relationships and
addressing local needs
Investors Yes, we have dedicated 0 0 – 0 0 –
(other than email address
shareholders) complianceofficer@rjcorp.
in and telephone no - +91-
124-4643100 for investors
to raise their grievances or
queries
Shareholders Yes, Company is following 11 0 – 3 0 –
strong Grievance Redressal
Mechanism and has
separate committee of
Directors i.e. Stakeholders’
Relationship Committee
We have dedicated
email address
complianceofficer@
rjcorp.in and telephone
no - +91-124-4643100 for
shareholders to raise their
grievances or queries

200 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Stakeholder Grievance Redressal FY 2024 FY 2023

group from Mechanism in place (Yes/ (Current Financial Year) (Previous Financial Year)
whom No) (If Yes, then provide
Number of Number of Remarks Number of Number of Remarks
complaint is web-link for grievance
Complaints complaints Complaints complaints
received redress policy)
Filed pending Filed pending
during the resolution during the resolution
year at close of year at close of
the year the year
Employees Yes, our employees 0 0 – 0 0 –
and workers have multiple ways to
reach us. Also, we have
dedicated email address
complianceofficer@rjcorp.
in and telephone no - +91-
124-4643100 to raise their
grievances or queries.
Additionally, they can
directly write to their
respective HR managers. We
also have vigil mechanism
policy and POSH policy
which empowers and
encourages employees
to report any concerns
regarding suspected
unethical behaviour,
malpractice, wrongful
conduct, fraud, or violations
of company policies. The
policies are accessible at -
https://varunbeverages.
com/wp-content/
uploads/2023/03/4-POSH-
Policy.pdf
https://varunbeverages.
com/wp-content/
uploads/2023/03/21-VIGIL-
MECHANISM-POLICY.pdf
Customers Yes. Also, number of 1,084 7 The 1,223 17 The
complaints received pending pending
through PepsiCo Customer complaints complaints
Care is provided were were
resolved in resolved in
subsequent subsequent
months months
Value Chain Yes, 0 0 – 0 0 –
Partners https://varunbeverages.
com/wp-content/
uploads/2023/04/23.1-
Anti-Bribery-Policy1.pdf
Others Yes, 0 0 – 0 0 –
(please https://varunbeverages.
specify) com/wp-content/
uploads/2023/03/21-VIGIL-
MECHANISM-POLICY.pdf

27. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and
social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach
to adapt or mitigate the risk along-with its financial implications, as per the following format.

Please refer Sustainability Report - Chapter “Materiality Assessment” (page-44-46) and “Risk and Opportunities
Management” (page-117-121).

Annual Report 2024 201

Section B: Management and Process Disclosures
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards
adopting the NGRBC Principles and Core Elements.

Disclosure P P P P P P P P P
Questions 1 2 3 4 5 6 7 8 9
Policy and management processes
1. a. Whether your entity’s Yes Yes Yes Yes Yes Yes Yes Yes Yes
policy/policies cover each
principle and its core
elements of the NGRBCs.
(Yes/No)
b. Has the policy been Yes Yes Yes Yes Yes Yes Yes Yes Yes
approved by the Board?
(Yes/No)
c. Web Link of the Policies, Yes, policies can be accessed through this link - https://varunbeverages.com/policy/
if available
2. Whether the entity has Yes Yes Yes Yes Yes Yes Yes Yes Yes
translated the policy into
procedures.
(Yes / No)
3. Do the enlisted policies extend Yes, Anti Bribery Policy covers value chain partners
to your value chain partners?
(Yes/No)
4. Name of the national GRI ISO 14001 OHSAS GRI GRI ISO 14001 Company is a member GRI GRI
and international codes/ Stand ISO 22000 18001 Stand Stand of Federation of Indian Stand Stand
certifications/labels/ standards ards (FSSC) ards ards GRI Chambers of Commerce ards ards
(e.g. Forest Stewardship GRI Standards and Industry, PHD Chamber
Council, Fairtrade, Rainforest GRI of Commerce and Industry,
Stand
Alliance, Trustea) standards Standards Confederation of Indian
ards
(e.g. SA 8000, OHSAS, ISO, Industry, The Associated
BIS) adopted by your entity and Chambers of Commerce
mapped to each principle. and Industry of India
and Action Alliance for
Recycling Beverage
Cartons.
GRI Standards
5. Specific commitments, goals Yes- Refer Sustainability Report (Page 49)
and targets set by the entity
with defined timelines, if any
6. Performance of the entity Yes- Refer Sustainability Report (Page 49)
against the specific
commitments, goals and targets
along-with reasons in case the
same are not met.
Governance, leadership and oversight
7. Statement by director responsible Refer Executive Vice Chairman’s Message section (Page 38-39) in Sustainability Report
for the business responsibility
report, highlighting ESG
related challenges, targets and
achievements (listed entity has
flexibility regarding the placement
of this disclosure)
8. Details of the highest authority ESG Committee comprising of Executive Vice-Chairman and
responsible for implementation Two Whole-time Directors
and oversight of the Business
Responsibility policy (ies).
9. Does the entity have a specified Yes, Environmental, Social and Governance Committee
Committee of the Board/ Director
responsible for decision making
on sustainability related issues?
(Yes / No). If yes, provide details.

202 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

10. Details of Review of NGRBCs by the Company:

Subject for Indicate whether review was undertaken by Frequency (Annually/ Half Yearly/ Quarterly/
Review Director/Committee of the Board/ Any other - please specify)
Any other Committee
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Performance
against above
policies and
follow up action
Compliance All the policies of the Company are approved by the Board and reviewed periodically or on a need basis.
statutory
requirements The Company complies with the regulations, extant and principles as are applicable periodically or on a
of relevance to need basis
the principles,
rectification
of any non-
compliances

11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external
agency? (Yes/No). If yes, provide name of the agency.

P1 P P P P P P P P
2 3 4 5 6 7 8 9
No No No No No Yes# No No No
DQS (Deutsch Quality Systems India Private Limited) has conducted carbon emission and water stewardship audit.
#

12. If answer to question 1 above is “No” i.e. not all Principles are covered by a policy, reasons to be stated

Questions P P P P P P P P P
1 2 3 4 5 6 7 8 9
The entity does not consider the
Principles material to its business N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
(Yes/No)
The entity is not at a stage where
it is in a position to formulate and
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
implement the policies on specified
principles (Yes/No)
The entity does not have the financial
or/human and technical resources N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
available for the task (Yes/No)
It is planned to be done in the next
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
financial year (Yes/No)
Any other reason (please specify) N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

Section C - Principle Wise Performance Disclosure

This section demonstrate our performance in integrating the Principles and Core Elements with key processes and
decisions

Annual Report 2024 203

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year 2024:
Segment Total number Topics / principles covered under the %age of persons in
of training and training and its impact respective category
awareness covered by the
programmes held awaremess programmes
Board of Directors 4 Code of conduct, Anti-bribery, Anti- 100%
corruption, FCPA and other policies
including POSH, Key Developments,
Sustainability Initiatives, Regulatory
updates and Review of Policy & procedures
Key Managerial 4 Code of conduct, Human Rights, Anti- 100%
Personnel bribery, Anti-corruption, FCPA, other key
policies including POSH , Key Developments,
Sustainability Initiatives, Regulatory updates
and Review of Policy & procedures
Employees other 6 Code of conduct, Human Rights, Anti- 100%
than BoD and KMPs bribery, Anti-corruption, FCPA, other key
policies including POSH and health &
safety and skill upgradation
Workers 6 Contractual employees and workers 100%
Trainings on Health & Safety in
manufacturing operations/Units

2.  etails of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the
D
entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in
the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of
SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 and as disclosed on the entity’s website):

Monetary NGRBC Name of the regulatory/ Amount Brief of the Case Has an appeal
Principle enforcement agencies/ (In `) been preferred ?
judicial institution (Yes/No)
Settlement - N.A. N.A. N.A. N.A.
Penalty/Fine - N.A. N.A. N.A. N.A.
Compounding fee - N.A. N.A. N.A. N.A.

Non-Monetary NGRBC Name of the regulatory/ enforcement Brief of the Case Has an appeal
Principle agencies/ judicial institutions been preferred ?
(Yes/No)
Imprisonment - N.A. N.A. N.A.
Punishment - N.A. N.A. N.A.

3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where
monetary or non-monetary action has been appealed.

Case Details Name of regulatory/ enforcement agencies/ judicial institutions

N.A. N.A.

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available,
provide a web-link to the policy.
Yes
Varun Beverages Limited and its subsidiaries, affiliates, associates and group companies (collectively referred to
as “VBL”), their directors, officers, employees (including part-time and contractors) and suppliers (“Officials”),
while acting on behalf of VBL strictly comply with this Anti-Bribery Policy. Officials are prohibited from giving or
receiving Bribes to any Government Officials or any other person or entity, including any person or entity in the
private or commercial sector, if the payment is intended to induce the recipient to misuse his or her position and
thereby give an unfair advantage to VBL. Detailed Policy is available at:
https://varunbeverages.com/wp-content/uploads/2023/04/23.1-Anti-Bribery-Policy1.pdf

204 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

5. 
Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery/ corruption:
FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Directors Nil Nil
KMPs Nil Nil
Employees Nil Nil
Workers Nil Nil

6. Details of complaints with regard to conflict of interest:

FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Number of complaints received in relation to Nil N.A. Nil N.A.
issues of Conflict of interest of Directors
Number of complaints received in relation to Nil N.A. Nil N.A.
issues of Conflict of interest of KMPs

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken
by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.
Not Applicable

8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the
following format:
FY 2024 FY 2023
Current Financial Year Previous Financial Year
Number of days of accounts payables 31 30

9. Open-ness of business

Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-
with loans and advances & investments, with related parties, in the following format:
Parameter Metrics FY 2024 FY 2023
Current Financial Previous Financial
Year Year
Concentration of a. Purchases from trading houses as % of total 3.1% 2.4%
Purchases purchases
b. Number of trading houses where purchases are 77 18
made from
c. Purchases from top 10 trading houses as % of 85.5% 96.9%
total purchases from trading houses
Concentration of a. Sales to dealers / distributors as % of total sales 100.0% 100.0%
Sales b. Number of Primary dealers/ distributors to 2,275 1,949
whom sales are made
c. Sales to top 10 dealers / distributors as % of 14.3% 7.4%
total sales to dealers /distributors
Share of RPTs in a. Purchases (Purchases with related parties as % 3.0% 4.6%
of Total Purchases)
b. Sales (Sales to related parties as % of Total 1.4% 0.9%
Sales)
c. Loans & advances given to related parties as % 100.0% 100.0%
of Total loans & advances
d. Investments in related parties as % of Total 99.7% 99.8%
Investments made

Annual Report 2024 205

PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe
Essential Indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the
environmental and social impacts of product and processes to total R&D and capex investments made by the
entity, respectively.
FY 2024 FY 2023 Details of improvements in environmental
(Current Financial Year) (Previous Financial Year) and social impacts
R&D - - –
Capex ` 488.45 Million ` 512.18 Million We strive to make use of renewable energy for
(1.65% of the total capex) (2.79% of the total capex) our energy requirements and aim to expand our
renewable energy portfolio further.

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes. the Company is procuring raw materials and packaging materials from the suppliers who are doing their
respective businesses sustainably. Refer page 78-81 of Sustainability Report for some of the initiatives taken
by our suppliers.

b. If yes, what percentage of inputs were sourced sustainably?

Given our business operations, it is difficult to estimate the percentage of inputs sourced sustainably.

However, VBL and all of our suppliers follow PepsiCo’s Global Supplier Code of Conduct wherein they abide
by all provisions relating to the impact on quality and food safety, sustainability, waste, and work environment
which includes labor practices and human rights aspects. https://www.pepsico.com/docs/default-source/
sustainability-and-esg-topics/supplier-code-of-conduct/pepsico-supplier-code-of-conduct---english.
pdf?sfvrsn=67dd868f_28

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end
of life, for (a) Plastics (including packaging) (b) E-waste ( c) Hazardous waste and (d) other waste.
(a) VBL has engaged GEM Enviro Management Limited for phased implementation of 100% recycling of used
PET bottles. Headquartered in Delhi, GEM Enviro is a Central Pollution Control Board (CPCB) recognised
Producer Responsible Organisation (PRO) specialising in collection and recycling of packaging waste and
promotion of recycled green products. It makes T-shirts and bags made from recycling of waste material,
such as used PET bottles.

(b) We are disposing off our E-waste through registered E-waste vendors

(c) We are safely disposing off our hazardous waste through registered vendors

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes,
whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to
Pollution Control Boards? If not, provide steps taken to address the same.
Yes, Refer response to point 3 above.

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing
industry) or for its services (for service industry)? If yes, provide details in the following format?
NIC Code Name of % of total Boundary for which the Whether conducted Results communicated
Product/ Turnover Life Cycle Perspective/ by independent in public domain
Service contributed Assessment was external agency (Yes/No) If yes,
conducted (Yes/No) provide the web-link.
Life Cycle Assessment Process
VBL is working continuously on screening our end-to-end production processes to deliver positive impact on
environment. In alignment to this, we adopted Life Cycle Assessment (LCA) and undertook an internal study
to assess the environmental impacts and embed the principles of sustainability into various stages of product
i.e, procurement of raw material, manufacturing of products, transportation of raw materials and supply of
finished goods. In order to continuously reduce the Company environmental footprint, the Company is improving
efficiencies, especially on critical resources such as water, fuel and energy, optimizing the resource consumption
and minimizing wastages including plastic waste management, increasing green cover in manufacturing plants
and also developing outside establishments.

206 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of
your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other
means, briefly describe the same along-with action taken to mitigate the same.

Name of Product / Service Description of the risk / concern Action Taken

No risks have been identified

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
industry) or providing services (for service industry).

Recycled or re-used input material to total material

Indicate input material FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
r-PET used in producing Preforms 1.54% 0.00%

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled,
and safely disposed, as per the following format:

FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Re-Used Recycled Safely Re-Used Recycled Safely
Disposed Disposed
Plastics (incuding Packaging) - 181,887 - - 150,982 -
E-waste - - 1 - - 4
Hazardous waste - - 1,640 - - 1,426
Other waste Quantity not recorded but safely disposed through authorised vendors

PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their
value chains
Essential Indicators

1. a. Details of measures for the well-being of employees: FY 2024

Category % of employees covered by

Total Health Insurance Accident Insurance Maternity benefits Paternity Benefits Day Care facilities
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)
Permanent employees
Male 6,838 6,838 100.00% 6,838 100.00% 0 0.00% 0 0.00%
Female 627 627 100.00% 627 100.00% 627 100.00% 0 0.00% Applicable As per
Factory
Others 22 22 100.00% 22 100.00% 0 0.00% 0 0.00% Act
Total 7,487 7,487 100.00% 7,487 100.00% 627 8.37% 0 0.00%
Other than Permanent employees
Male 7,091 7,091 100.00% 7,091 100.00% 0 0.00% 0 0.00% Applicable As per
Factory
Female 250 250 100.00% 250 100.00% 250 100.00% 0 0.00%
Act
Others 0 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Total 7,341 7,341 100.00% 7,341 100.00% 250 3.40% 0 0.00%

Annual Report 2024 207

b. Details of measures for the well-being of workers: FY 2024

% of workers covered by
Category
Total Health Insurance Accident Maternity benefits Paternity Benefits Day Care facilities
(A) Insurance
Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) ( E) (E/A) (F) (F/A)
Permanent workers
Male 3,521 3,521 100.00% 3,521 100.00% 0 0.00% 0 0.00% Applicable As per
Female 33 33 100.00% 33 100.00% 33 100.00% 0 0.00% Factory
Others 22 22 100.00% 22 100.00% 0 0.00% 0 0.00% Act
Total 3,554 3,554 100.00% 3,554 100.00% 33 1.00% 0 0.00%
Other than Permanent workers
Male 10,249 9006 87.87% 9,006 87.87% 0 0.00% 0 0.00% Applicable As per
Female 883 826 93.54% 826 93.54% 826 93.54% 0 0.00% Factory
Others 26 26 100.00% 26 100.00% 0 0.00% 0 0.00% Act
Total 11,158 9,832 88.12% 9,832 88.12% 826 7.40% 0 0.00%

c. Spending on measures towards well-being of employees and workers (including permanent and other than
permanent) in the following format –
FY 2024 FY 2023
Current Financial Year Previous Financial Year
Cost incurred on well being measures as a % 0.12% 0.12%
of total revenue of the company

2. Details of retirement benefits, for Current Financial Year and Previous Financial Year.
Benefits FY 2024 FY 2023 Remarks
(Current Financial Year) (Previous Financial Year)
No. of No. of Deducted No. of No. of Deducted
employees workers and employees workers and
covered as covered as deposited covered as covered deposited
% of total % of total with the % of total as % of with the
employees workers authority employees total authority
(Y/N/N.A.) workers (Y/N/N.A.)
PF 100% 100% Y 100% 100% Y PF AS PER EPF &
MISC PROVISION ACT
Gratuity 100% 100% Y 100% 100% Y GRATUITY AS
PER PAYMENT OF
GRATUITY ACT
ESI 100% 100% Y 100% 100% Y ESI AS PER
EMPLOYEE STATE
INSURANCE ACT
Others - - - N.A - - N.A -
please sepcify

3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by
the entity in this regard.
Yes

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so,
provide a web-link to the policy.
No

5. Return to work and Retention rates of permanent employees and workers that took parental leave - FY 2024

Gender Permanent employees Permanent workers

Return to work rate Retention rate Return to work rate Retention rate
Male N/A N/A N/A N/A
Female 100% 100% 100% 100%

208 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

6. Is there a mechanism available to receive and redress grievances for the following categories of employees
and worker? If yes, give details of the mechanism in brief.
Yes/No
(If Yes, then give details of the mechanism in brief)
Permanent Workers
Yes, the Company has multiple mechanisms to redress
Other than Permanent Workers
grievances as per below links as available on the
Permanent Employees
website of the Company.
Other than Permanent Employees

https://varunbeverages.com/wp-content/uploads/2023/08/25-Grievance-Redressal-Policy.pdf
https://varunbeverages.com/wp-content/uploads/2023/03/21-VIGIL-MECHANISM-POLICY.pdf
https://varunbeverages.com/wp-content/uploads/2023/03/4-POSH-Policy.pdf

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

Category FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)
Total No. of % Total No. of %
employees/ employees/ (B/A) employees/ employees/ (B/A)
workers in workers in workers in workers in
respective respective respective respective
category category, who category category, who
(A) are part of (A) are part of
association(s) association(s)
or Union or Union
(B) (B)
Total Permanent Employees
Male 6,838 0 0.00% 6,260 0 0.00%
Female 627 0 0.00% 488 0 0.00%
Others 22 0 0.00% 14 0 0.00%
7,487 0 0.00% 6,762 0 0.00%
Total Permanent Workers
Male 3,521 1,514 43.00% 3,175 1,586 49.95%
Female 33 14 42.42% 36 14 38.89%
Others 0 0 0.00% 0 0 0.00%
3,554 1,528 42.99% 3,211 1,600 49.95%
Total employees 11,041 1,528 13.84% 9,973 1,600 16.04%
and workers

8. Details of training given to employees and workers:

Category FY 2024 FY 2023 Remarks

(Current Financial Year) (Previous Financial Year)
Total On Health & Safety On Skill Total On Health & On Skill
(A) Measures Upgradation (A) Safety Measures Upgradation
Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (B) (B/A) (C) (C/A)
Employees
Male 6,838 6,066 88.71% 5,498 80.40% 6,260 2,886 46.10% 5,607 89.57% -
Female 627 627 100.00% 627 100.00% 488 221 45.29% 330 67.62% -
Others 22 22 100.00% 22 100.00% 14 4 28.57% 1 7.14% -
7,487 6,715 89.69% 6,147 82.10% 6,762 3,111 46.01% 5,938 87.81% -
Workers
Male 3,521 3,370 95.71% 3,100 88.04% 3,175 3,146 99.09% 2,856 89.95% -
Female 33 33 100.00% 33 100.00% 36 34 94.44% 36 100.00% -
3,554 3,403 95.75% 3,133 88.15% 3211 3,180 99.03% 2,892 90.07% -
Total employees 11,041 10,118 91.64% 9,280 84.05% 9,973 6,291 63.08% 8,830 88.54% -
and workers

Annual Report 2024 209

9. Details of performance and career development reviews of employees and workers:

Category FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)

Total (A) No. (B) % (B/A) Total (A) No. (B) % (B/A)

Employees

Male 6,838 6,838 100.00% 6,260 6,260 100.00%

Female 627 627 100.00% 488 488 100.00%

Others 22 22 100.00% 14 14 100.00%

Total 7,487 7,487 100.00% 6,762 6,762 100.00%

Workers

Male 3,521 3,521 100.00% 3,175 3,175 100.00%

Female 33 33 100.00% 36 36 100.00%

Total 3,554 3,554 100.00% 3,211 3,211 100.00%

Remarks - We have an annual appraisal process, where performance is assessed through ratings system. At the Sales unit level,
performance is monitored month on month through target achievement. At Plant level performance is monitored through KPI’s.

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity?
(Yes/ No). If yes, the coverage such system?

Yes, Each plant has primary health centres and restrooms have been established. Periodic inspections are
conducted by certified surgeons and auditing organization to confirm that our occupational health and safety
systems meet international standards. Since we fall under Food & Beverage category, we are subjected to all
industry related audits and surveys to ensure that we are 100% compliant.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-
routine basis by the entity?
Yes (Identified by concern government offices)

c.  Whether you have processes for workers to report the work related hazards and to remove themselves
from such risks. (Yes/No)
Yes, all workers can reach out to management to address their concerns regarding working conditions,
human rights, etc.

d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
(Yes/No)
Yes, medical advise is available for workers and employees at the plant level.

11. Details of safety related incidents, in the following format:

Safety Incident/Number Category FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)
Lost Time Injury Frequency Rate (LTIFR) Employees 0.12 0
(per one million-person hours worked) Workers 0.096 0.003
Employees 2 1
Total Recordable work - related injuries
Workers 3 1
Employees 0 0
No. of fatalities
Workers 0 2
High consequence work-related injury Employees 0 0
or ill health (excluding fatalities) Workers 0 0
*Including in the contract workforce

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12. Describe the measures taken by the entity to ensure a safe and healthy work place.

1. Conducting Safety awareness program frequently

2. Specialized training program for operations/Technicians.

3. Safety audit by Internal/Government officials.

4. Formation of safety committee

5. Periodic Check of equipment’s

13. Number of Complaints on the following made by employees and workers:

Category FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)

Filed during Pending Remarks Filed during Pending Remarks

the year resolution at the the year resolution at the
end of the year end of the year

Working Conditions 0 0 - 0 0 -

Health & Safety 0 0 - 0 0 -

14. Assessments for the year:

% of your plants and offices that were assessed (by

entity or statutory authorities or third parties)

Health and safety practices 100%*

Working Conditions 100%*

* Remarks - As and when visited by respective Govt. officers

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks / concerns arising from assessments of health & safety practices and working conditions.

There were no significant risk or concern arising from assessments of health & safety practices and working
conditions, however we have undertaken following preventive measures:

i. Formation of Safety Committee to formulate best health & safety practices and working conditions.

ii. Safety audit by Internal/ Government officials

iii. Specialized training program for Operations/ Technicians

iv. Conducting frequent Safety Awareness programs

v. Periodic check of equipment

Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees
(Y/N) (B) Workers (Yes/No).
(A) Yes; (B) Yes

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited
by the value chain partners.
Yes- for PF & ESI
All the contractors working with us are registered with PF & ESI authorities and they have been allotted separate
code number by respective authorities. They are depositing the contributions as and when due and they share
back the challans of the deposits made to the authorities.

Annual Report 2024 211

3. Provide the number of employees / workers having suffered high consequence work related injury / ill-health /
fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment:

Total no. of affected employees/ workers No. of employees/workers that are rehabilitated
and placed in suitable employment or whose family
members have been placed in suitable employment

FY 2024 FY 2023 FY 2024 FY 2023

Employees Nil Nil Nil Nil

Workers Nil Nil Nil Nil

4. 
Does the entity provide transition assistance programs to facilitate continued employability and the
management of career endings resulting from retirement or termination of employment? (Yes/ No/ NA)
Yes

5. Details on assessment of value chain partners:

% of value chain partners (by value of business done

with such partners) that were assessed

Health and safety practices 90%

Working Conditions 90%

The above table is related with material supplier. All the manpower deployed to the factory/Office by various
manpower supply companies are governed by the respective labour laws of that company/Plant.

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
All the manpower deployed to the factory/Office by various manpower supply companies are governed by the
respective labour laws of the state concerned.

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity.
Refer “Stakeholder communications” section (Page 42-43) in Sustainability Report

2. 
List stakeholder groups identified as key for your entity and the frequency of engagement with each
stakeholder group.
Refer “Stakeholder communications” section (Page 42-43) in Sustainability Report

Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and
social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
Refer “Stakeholder communications” section (Page 42-43) in Sustainability Report

2. Whether stakeholder consultation is used to support the identification and management of environmental, and
social topics. If so, provide details of instances as to how the inputs received from stakeholders on these topics
were incorporated into policies and activities of the entity.
No such instances

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalized stakeholder groups.
No such instances

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PRINCIPLE 5: Businesses should respect and promote human rights

Essential Indicators

1. 
Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in
the following format:

Category FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)

Total No. of % Total No. of %

(A) Employees/ (B/A) (A) Employees/ (B/A)
Workers Workers
Covered (B) Covered (B)

Employees

Permanent 7,487 7,487 100.00% 6,762 3,111 46.01%

Other than Permanent 7,341 5,139 70.00% 7,013 3,013 42.96%

Total Employees 14,828 12,626 85.15% 13,775 6,124 44.46%

Workers

Permanent 3,554 3,554 100.00% 3,211 3,180 99.03%

Other than Permanent 11,158 7,253 65.00% 9,832 5,113 52.00%

Total Workers 14,712 10,807 73.46% 13,043 8,293 63.58%

2. Details of minimum wages paid to employees and workers, in the following format:

Category FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)
Total Equal to More than Total Equal to More than
(A) minimum wages minimum wages (A) minimum wages minimum wages
No. (B) % (B/A) No. (C) % (C/A) No. (B) % (B/A) No. (C) % (C/A)
Employees
Permanent
Male 6,838 0 0.00% 6,838 100.00% 6,260 0 0.00% 6,260 100.00%
Female 627 0 0.00% 627 100.00% 488 0 0.00% 488 100.00%
Other 22 0 0.00% 22 100.00% 14 0 0.00% 14 100.00%
Other than Permanent
Male 7,091 0 0.00% 7,091 100.00% 6,867 0 0.00% 6,867 100.00%
Female 250 0 0.00% 250 100.00% 146 0 0.00% 146 100.00%
Workers
Permanent
Male 3,521 0 0.00% 3,521 100.00% 3,175 0 0.00% 3,175 100.00%
Female 33 0 0.00% 33 100.00% 36 0 0.00% 36 100.00%
Other than Permanent
Male 10,249 5,670 55.32% 4,579 44.68% 9,006 4,956 55.03% 4,050 44.97%
Female 883 485 54.93% 398 45.07% 826 455 55.08% 371 44.92%
Other 26 0 0.00% 26 100.00% 0 0 0.00% 0 0.00%

Annual Report 2024 213

3. Details of remuneration/salary/wages
a. Median remuneration / wages: FY 2024
(` in Million)
Male Female Others
Number Median Number Median Number Median
remuneration/ remuneration/ remuneration/
salary/wages salary/wages salary/wages
of respective of respective of respective
category category category
Board of 3 67.18 - - 0 0
Directors (BOD)
Key Managerial 2 11.79 - - 0 0
Personnel
Employees 6,833 0.47 627 0.40 22 0.36
other than BOD
and KMP
Workers 3,521 0.33 33 0.26 0 0

Note: Since Independent Directors received no remuneration, except sitting fee for attending Board/ Committee meetings, the
required details are not applicable. Further, for the purpose of calculation of median remuneration of KMP, remuneration paid to
Mr. Lalit Malik has not been considered due to cessation as KMP with effect from May 13, 2024.

b. Gross wages paid to females as % of total wages paid by the entity, in the following format:
FY 2024 FY 2023
Current Financial Year Previous Financial Year
Gross wages paid to females as % of total 5.94% 5.19%
wages

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues
caused or contributed to/by the business? (Yes/No)
All employees can reach out to management to address their concerns & we also have grievance redressal
mechanism.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
We have an internal grievance redressal mechanism through which grievance get redressed. However, if the
grievance is not settled by the internal committee then concern person is free to approach the government forum.

6. Number of Complaints on the following made by employees and workers:

FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Filed Pending Remarks Filed Pending Remarks
during the resolution during the resolution
year at the end year at the end
of the year of the year
Sexual Harassment Nil Nil - Nil Nil -
Discrimination at workplace Nil Nil - Nil Nil -
Child Labour Nil Nil - Nil Nil -
Forced Labour/ Involuntary Nil Nil - Nil Nil -
Labour
Wages Nil Nil - Nil Nil -
Other human rights related Nil Nil - Nil Nil -
issues

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7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013, in the following format:
FY 2024 FY 2023
Current Financial Year Previous Financial Year
Total Complaints reported under Sexual Nil Nil
Harassment on of Women at Workplace
(Prevention, Prohibition and Redressal) Act,
2013 (POSH)
Complaints on POSH as a % of female Nil Nil
employees / workers
Complaints on POSH upheld Nil Nil

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
 All employees can reach out to management to address their concerns & we are also governed by POSH &
Grievance redressal mechanism.

9. Do human rights requirements form part of your business agreements and contracts? (Yes / No)
Yes, As per Labour laws and/or other applicable laws

10. Assessments for the year:

% of your plants and offices that were assessed (by
entity or statutory authorities or third parties)
Child labour Nil
Forced/involuntary labour Nil
Sexual harassment Nil
Discrimination at workplace Nil
Wages Nil
Others - please specify N.A.

11. Provide details of any corrective actions taken or underway to address significant risks /concerns arising from
the assessments at Question 9 above.
We are strictly following the labour laws in which all above 6 points are covered, so far we have not been prosecuted
for any deviations. All employees can reach out to the management to address any significant risks /concerns
regarding their work environment.

Leadership Indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances/
complaints.
We have had no such concerns in the past. However, all employees can reach out to the management to address
any significant risks /concerns regarding their work environment.

2. Details of the scope and coverage of any Human rights due-diligence conducted
No such due-diligence conducted during the year.

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights
of Persons with Disabilities Act, 2016?
Yes

4. Details on assessment of value chain partners:

% of your plants and offices that were assessed
(by entity or statutory authorities or third parties)
Sexual harassment Nil
Discrimination at workplace Nil
Child labour Nil
Forced/involuntary labour Nil
Wages Nil
Others - please specify N.A

Annual Report 2024 215

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
the assessments at Question 4 above.
There are no such cases.

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1. Details of total energy consumption and energy intensity, in the following format:
Parameter Units FY 2024 FY 2023
(Current Financial (Previous Financial
Year) Year)
Revenue from Operations ` in million 143,486.00 126,328.26
Units FY 2024 FY 2023
(Current Financial (Previous Financial
Year) Year)
From renewable sources
Total electricity consumption (A) Solar and Wind million kWH units 78.96 57.70
Total fuel consumption (B) million kWH units - -
Energy consumption through other sources (C) million kWH units - -
Total energy consumed from renewable sources million kWH units 78.96 57.70
(A+B+C)
From non-renewable sources
Total electricity consumption (D) million kWH units 407.55 363.37
Total fuel consumption (E) million kWH units 13.87 14.31
Energy consumption through other sources (F) million kWH units - -
Total energy consumed from non renewable million kWH units 421.42 377.68
sources (D+E+F)
Total energy consumed (A+B+C+D+E+F) million kWH units 500.38 435.38
Energy intensity per rupee of turnover (Total kWH / per rupee 0.003 0.003
energy consumption/Revenue from operations) of turnover
Energy intensity per rupee of turnover adjusted kWH / per rupee NA NA
for Purchasing Power Parity (PPP) (Total energy of turnover
consumed / Revenue from operations adjusted
for PPP)
Energy intensity in terms of physical output kWH / per 8oz 0.61 0.60
case of production
volume
Energy intensity (optional) - the relevant metric - -
may be selected by the entity
Note: Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency.

Yes, DQS (Deutsch Quality Systems India Private Limited)

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under
the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action
taken, if any.
Not Applicable

3. Provide details of the following disclosures related to water, in the following format:
(in million liters)
Parameter FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source
(i) Surface water 1,587 1,856
(ii) Groundwater 5,688 4,648
(iii) Third party water - -
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal (i + ii + iii + iv + v) 7,275 6,504
Total volume of water consumption 4,651 4,143

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(in million liters)

Parameter FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Water intensity per rupee of turnover (Water consumed / 0.032 0.033
Revenue from Operations)
Water intensity per rupee of turnover adjusted for NA NA
Purchasing Power Parity (PPP)
(Total water consumption / Revenue from operations
adjusted for PPP)
Water intensity in terms of physical output 1.56^ 1.57^
(litres of water used per litre of beverage produced)
Water intensity (optional) - the relevant metric may be
selected by the entity
^ Note Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of 2 new
greenfield plants in 2023 and 3 new greenfield plants in 2024.
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
name of the external agency.
Yes, DQS (Deutsch Quality Systems India Private Limited)

4. Provide the following details related to water discharged:

(in million liters)
Parameter FY 2024 FY 2023
(Current Financial (Previous Financial
Year) Year)
Water discharge by destination and level of treatment
(i) To Surface water - -
- No treatment - -
- With treatment - please specify the level of treatment - -
(ii) To Groundwater - -
- No treatment - -
- With treatment - please specify the level of treatment - -
(iii) To Seawater - -
- No treatment - -
- With treatment - please specify the level of treatment - -
(iv) Sent to third-parties - -
- No treatment - -
- With treatment - please specify the level of treatment - -
(v) Others - -
- No treatment - -
- 
With treatment - Water discharged is treated through 2,624 2,254
ETP plants
Total water discharged 2,624 2,254

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency.
Yes, DQS (Deutsch Quality Systems India Private Limited)

5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
No, the entity has not implemented a mechanism for Zero Liquid Discharge, however the company has adopted
various improvement process for better water management:
• Low glass mix and more efficient new lines
• Air Scoring to complete in all the plants
• Connect all filters (ACF / PSF) for water recovery
• Optimize drainage timing at ACF / PSF (Optimization to standard 5 minutes drain time)
• Bottle washer recovery to complete. High volume glass line
• RO at ETPs at selective locations. Sample plant high volume to choose
• RO Efficiency to improve whereever RO recovery < Designed recovery
• Sensors / Foot operated taps for hand wash at plants

Annual Report 2024 217

6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter Please specify FY 2024 FY 2023

units (Current Financial Year) (Previous Financial Year)
NOx
SOx
Particulate matter (PM)
Persistent organic pollutants (POP) NA
Volatile organic Compounds (VOC)
Hazardous air Pollutants (HAP)
Others - please specify
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,

name of the external agency.
No

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & intensity, in the following format:

Parameter units FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)
Total Scope 1 emissions Metric tonnes 88,224 74,260
(Break-up of the GHG into CO2, CH4, of CO2
N2O, HFCs, PFCs,SF6, NF3, if available)" equivalent
Total Scope 2 emissions Metric tonnes 3,52,883 3,05,164
(Break-up of the GHG into CO2, CH4, of CO2
N2O, HFCs, PFCs,SF6, NF3, if available)" equivalent
Total Scope 1 and Scope 2 emissions per kg of CO2 0.003 0.003
rupee of turnover (Total Scope 1 and equivalent
Scope 2 GHG emissions / Revenue from per rupee of
operations) turnover
Total Scope 1 and Scope 2 emission kg of CO2 NA NA
intensity per rupee of turnover adjusted equivalent
for Purchasing Power Parity (PPP) per rupee of
(Total Scope 1 and Scope 2 GHG turnover
emissions / Revenue from operations
adjusted for PPP)
Total Scope 1 and Scope 2 kg of 0.09 0.09
emission intensity in terms CO2e/liter
of physical output of beverage
produced
Total Scope 1 and Scope 2 emission
intensity (optional)
- the relevant metric may be selected by
the entity
Note:
1. We have adopted the SBTi methodology for calculating GHG emissions starting from FY 2024. Consequently,
the GHG emissions for FY 2023 have been restated using this approach.
2. The increase in GHG emissions is attributed to inorganic acquisitions in FY 2024.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?

(Y/N) If yes, name of the external agency.
Yes, DQS (Deutsch Quality Systems India Private Limited)

8. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.
Yes, The Company has taken several environmental initiatives which showcases commitment to sustainable
practices:
i. Procurement of Energy efficient machines
ii. Increase in Rooftop Solar Power Generation
iii. Energy efficient Visi coolers
iv. Conduction of Plantation Drive
v. Use of Electric Vehicles for last mile delivery
Also, Refer “Sustained climate action: Reducing our carbon footprint” section (Page 72-73) in Sustainability Report

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9. Provide details related to waste management by the entity, in the following format:

Parameter FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)
Total Waste generated (in metric tonnes)
Plastic waste (A) 206,682 175,292
E-waste (B) 1 4
Bio-medical waste (C) - -
Construction and demolition Waste (D) Quantity not recorded but safely disposed
through authorised vendors
Battery waste (E) - -
Radioactive waste (F) - -
Other Hazardous waste. Please specify, if any. (G) 1,640 1,426
Other Non-hazardous waste generated (H). Please - -
specify, if any. (Break-up by composition i.e. by materials
relevant to the sector)
Total (A+B + C + D + E + F + G+ H) 208,323 176,722
Waste intensity per rupee of turnover 0.001 0.001
(Total waste generated/ Revenue from operations)
Waste intensity per rupee of turnover adjusted NA NA
Purchasing for Power Parity (PPP) (Total Revenue waste
from generated / operations adjusted for PPP)
Waste intensity in terms of physical output 0.254 0.242
Waste intensity (optional) – the relevant metric may be
selected by the entity
For each category of waste generated, total waste recovered through recycling,
re-using or other recovery operations (in metric tonnes)
Category of waste
(i) Recycled 181,887 150,982
(ii) Re-used - -
(iii) Other recovery operations - -
Total 181,887 150,982
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste - -
(i) Incineration - -
(ii) Landfilling - -
(iii) Other disposal operations 1,641 1,430
Total 1,641 1,430

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
name of the external agency.
No. However, Plastic waste recycling data is reported on CPCB portal as per EPR guidelines.

10. 
Briefly describe the waste management practices adopted in your establishments. Describe the strategy
adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes
and the practices adopted to manage such wastes.
We do segregation of all type of waste at source and store wastes in designated areas only. Wastages are closely
monitored on daily, weekly and monthly basis and are directly linked with plant KPIs. Approximately more than 90-98%
waste (broken glass, plastic bottles, cartons, metal waste etc) goes for recycling. Unit has effective ETP operation
combined with aeration and anaerobic system wherein effective operational controls ensures very limited quantity of
ETP sludge generation as a hazardous waste. ETP sludge is safely collected in Hazardous waste storage area and finally
disposal is done to pollution control board approved TSDF facility for landfill. Unit is not using any toxic chemicals.

Annual Report 2024 219

11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where
environmental approvals / clearances are required, please specify details in the following format:
S.No. Location of Type of Whether the conditions of environmental approval/
operations/offices operations clearance are being complied with? (Y/N) If no, the
reasons thereof and corrective action taken, if any.
Not Applicable

12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in
the current financial year:
Name and EIA Date Whether conducted by Results communicated Relevant
brief details Notification No. independent external agency in public domain Web link
of project (Yes / No) (Yes / No)
Not Applicable

13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the
Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment
protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following
format:
Yes

Leadership Indicators
1. Water withdrawal, consumption and discharge in areas of water stress (in million liters):
For each facility/plant located in areas of water stress, provide the following information:
(i) Name of the area: All the plants which are located in water stressed areas
(ii) Nature of operations: Manufacturing of Beverages
(iii) Water withdrawal, consumption and discharge in the following format:
(in million liters)
Parameter FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source
(i) Surface water 593 575
(ii) Groundwater 1,532 1,603
(iii) Third party water - -
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal 2,124 2,178
Total volume of water consumption 1,403 1,418
Water intensity per rupee of turnover (Water consumed / 0.01 0.01
turnover)
Water intensity (Optional) - the relevant metric may be - -
selected by the entity
Water discharge by destination and level of treatment
(i) Into Surface water - -
- No treatment - -
- With treatment - please specify level of treatment - -
(ii) Into Groundwater - -
- No treatment - -
- With treatment - please specify level of treatment - -
(iii) Into Seawater - -
- No treatment - -
- With treatment - please specify level of treatment - -

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(in million liters)

Parameter FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
(iv) Sent to third-parties - -
- No treatment - -
- With treatment - please specify level of treatment - -
(v) Others - -
- No treatment - -
- With treatment - Water discharged is treated 721 761
through ETP plants
Total water discharged 721 761

2. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Parameter units FY 2024 FY 2023

(Current Financial Year) (Previous Financial Year)
Total Scope 3 emissions(Break-up of the Metric tonnes 31,20,833 25,95,184
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, of CO2
NF3, if available) equivalent
Total Scope 3 emissions per rupee of turnover kg of CO2e/ 0.02 0.02
per rupee of
turnover
Total Scope 3 emission intensity kg of CO2e/ 0.67 0.63
(optional) liter of
- the relevant metric may be selected beverage
by the entity produced
Note:
1. We have adopted the SBTi methodology for calculating GHG emissions starting from FY 2024. Consequently,
the GHG emissions for FY 2023 have been restated using this approach.
2. The increase in GHG emissions is attributed to inorganic acquisitions in FY 2024.

3. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide
details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention
and remediation activities.
Not Applicable

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide
details of the same as well as outcome of such initiatives, as per the following format:

Sr. No. Initiative undertaken Details of the initiative (Web-link, if any, Outcome of the initiative
may be provided along-with summary)

1 Plastic Waste Engaged Gem Enviro Management Limited for Reduction in plastic waste
Management phased implementation (upto 100%) recycling
of used Plastic Wastes from end users.

2 Water Conservation Engaged DQS India Pvt. Ltd which verifies Reduction in wastage of
water mass balance and we also undertook water
several other initiatives towards water
conservation and water recharge.

3 Reduced grammage Packaging innovations introduced by PIH in Reduction in plastic usage

of Plastic Closures and India through Global R&D and best practices.
Preforms (used for
PET-Bottles) over the years

Annual Report 2024 221

 Sr. No. Initiative undertaken Details of the initiative (Web-link, if any, Outcome of the initiative
may be provided along-with summary)

4 Use of fuels like biomass The company is proactive in adopting new Reduction in Green House
for steam generation, technologies that use cleaner fuels of energy. Gases
increasing renewable Commissioned rooftop solar plants in most
energy contribution of our manufacturing plants and entered
into open access solar and wind power for
few manufacturing locations to increase the
renewable energy contribution of our overall
electricity consumption and redesigned the
power generation units at many locations.

5 Installation of Effluent Plants have installed online monitoring Effluents are treated and
Treatment Plant Systems in Effluent Treatment Plant as well as discharged under prescribed
Boiler emissions for all time compliance which limits thereby remain well
is being monitored by CPCB on real time basis. within the prescribed norms
and consent conditions.

5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Yes; Unit does have Disaster/Emergency preparedness and response plan for business continuity. This includes all
possible emergencies like Fire, Ammonia or CO2 leakage , any major safety accidents, Chemical leakage, Natural
Calamity (flood, cyclone, earthquake) or pandemic situation like Covid 19. To ensure unit readiness plant is also
exercising mock drill on six monthly frequency. In past unit has also successfully demonstrated to respond any
emergency situation in past. Such one example is to ensure business continuity during Covid times by implementing
effective control mechanism to avoid Covid 19 spread. Unit has successfully operated production during pandemic
time by adapting all the established measures.

6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What
mitigation or adaptation measures have been taken by the entity in this regard.
In order to continously reduce the Company environment footprint, the company is improving efficiencies,
especially on critical resources such as Water, fuel and energy, optimizing the resource consumption and minimising
wastages, increasing green cover in manufacturing plants and also developing outside establishments. Company
also reduced weight of Closures and Preforms over the years to contribute towards environment sustainability.
Company also implemented water consumption optimization measures and water recovery and reuse of the water
across all plants.

7. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
90%+ of Raw material suppliers, 90%+ of Capex suppliers and 90%+ of Distributors are covered for assessment.

PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that
is responsible and transparent
Essential Indicators
1. a. Number of affiliations with trade and industry chambers/associations.
5

b. List the top 10 trade and industry chambers/ associations (determined based on the total members
of such body) the entity is a member of/ affiliated to.
S. No. Name of the trade and industry chambers/ associations Reach of trade and industry chambers/
associations (State/National)
1 Federation of Indian Chambers of Commerce and Industry National
2 PHD Chamber of Commerce and Industry National
3 Confederation of Indian Industry (CII) National
4 The Associated Chambers of Commerce and Industry of India National
5 Action Alliance for Recycling Beverage Cartons National

222 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by
the entity, based on adverse orders from regulatory authorities.
Not Applicable

PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in
the current financial year.

Name and SIA Date of Whether Results Relevant

brief details of Notification No. notification conducted by communicated Web Link
project independent in public domain
external agency (Yes/ No)
(Yes / No)
Not Applicable

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken
by your entity, in the following format:
S.No. Name of Project State District No. of Project % of PAFs Amounts paid
for which R&R is Affected Families covered by R&R to PAFs n the
ongoing (PAFs) FY (In `)
Not Applicable

3. Describe the mechanisms to receive and redress grievances of the community.


There is regular engagement with representatives from key neighbourhood across India. Stakeholders suggestions
can also be emailed to the Compliance Officer at complianceofficer@rjcorp.in

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Directly sourced from MSMEs/ small producers 7.38% 6.66%
Directly from within India 91.84% 94.44%

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers
employed on a permanent or non-permanent / on contract basis) in the following locations, as % of total
wage cost

FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)

Rural 13% 12%

Semi-urban 17% 17%

Urban 65% 65%

Metropolitan 5% 6%
(Place to be categorized as per RBI Classification System - rural / semi-urban / urban / metropolitan)

Annual Report 2024 223

PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback
VBL Consumer response programme is developed to promptly resolve consumer concerns & grievances, which
ensures that consumer/ customer is responded with courtesy and in timely manner. The Mechanism helps the
organization to remain consumer centric, establish top down approach to build trust and strengthen transparency
while addressing their queries and concerns:
The Complaints are lodged by consumer (via Toll Free no. available on label & crown), arranged and sorted by the
PepsiCo Consumer Response System (CRS) representative who then, forwards the same to VBL after logging in
on Wilke portal. VBL Plant team & Consumer Care / Complaint Management System (CCMS) coordinator review
auto generated email containing relevant details of the Complaint which are then investigated by VBL Plant team,
Regional Quality Coordinator (RQC) & CCMS coordinator and the complaint is attended by Customer Relationship
Executive (CRE) to address the concern simultaneously. After detailed analysis of each reported complaints by all
the plants root cause analysis is carried out and Corrective and Preventive Actions are taken by plant team.
Plants then, initiate an improvement plan to mitigate reoccurrence of concern and to pacify & satisfy the consumer.

Feedback:
Feedback is sent to PepsiCo CRS team by CCMS coordinator and Pepsi International (PI) Team connects & respond
to consumer, subsequently on SOS basis.

The Complaints in VBL are tracked and reviewed monthly on the basis of it’s nature, flavour, category and plant.

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information
about:
We understand that we provide these information on the labels of our products like ‘crush bottle after use’,
recycable package mark, throw in dustbin mark, safe and responsible use instructions on energy drink (Sting), etc.

As a percentage to total turnover

Environmental and social parameters relevant to the product 100%

Safe and responsible usage 100%

Recycling and/or safe disposal 100%

3. Number of consumer complaints in respect of the following:

FY 2024 FY 2023
(Current Financial Year) (Previous Financial Year)
Received Pending Remarks Received Pending Remarks
during resolution at during resolution at
the year the end of year the year the end of year
Data privacy NIL N.A NIL N.A
Advertising NIL N.A NIL N.A
Cyber-security NIL N.A NIL N.A
Delivery of Essential Services NIL N.A NIL N.A
Restrictive Trade Practices NIL N.A NIL N.A
Unfair Trade Practices NIL N.A NIL N.A
Other - No. of complaints 1,084 7 The 1,223 17 The
received through PepsiCo pending pending
Customer Care complaints complaints
were were
resolved in resolved in
subsequent subsequent
months months

224 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

4. Details of instances of product recalls on account of safety issues:

Number Reasons for Recall
Voluntary recalls NA NA
Forced recalls NA NA

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No)
If available, provide a web-link of the policy.
Yes, https://varunbeverages.com/privacy

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls;
penalty / action taken by regulatory authorities on safety of products / services.
NIL

7 Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls;
penalty / action taken by regulatory authorities on safety of products / services.
a. Number of instances of data breaches
0

b. Percentage of data breaches involving personally identifiable information of customers

0%

c. Impact, if any, of the data breaches

NA

Leadership Indicators
1. Channels / platforms where information on products and services of the entity can be accessed (provide web
link, if available).
https://www.varunbeverages.com/our-products/

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
https://www.pepsico.com/docs/default-source/sustainability-and-esg-topics/pepsico-policy-on-responsibl
e-advertising-and-marketing-to-children.pdf?sfvrsn=f7901072_3#:~:text=Additionally%2C%20PepsiCo%20
will%20not%20advertise,pledge%20programs%20(Pledge%20Programs)

3 Does the entity display product information on the product over and above what is mandated as per local
laws?
If yes, provide details in brief.
Did your entity carry out any survey with regard to consumer satisfaction relating to the major products /
services of the entity, significant locations of operation of the entity or the entity as a whole?
We display all the mandatory product information on the product over as per the requirements of the regulatory
authorities.

Annual Report 2024 225

Independent Auditor’s Report

To the Members of Varun Beverages Limited Basis for Opinion

Report on the Audit of the Consolidated Financial 3. We conducted our audit in accordance with the
Statements Standards on Auditing specified under section
143(10) of the Act. Our responsibilities under
Opinion those standards are further described in the
1. We have audited the accompanying consolidated Auditor’s Responsibilities for the Audit of the
financial statements of Varun Beverages Limited Consolidated Financial Statements section of
(‘the Holding Company’) and its subsidiaries (the our report. We are independent of the Group,
Holding Company and its subsidiaries together its associates and joint venture in accordance
referred to as ‘the Group’), its associates and with the Code of Ethics issued by the Institute
joint venture, as listed in Annexure I, which of Chartered Accountants of India (‘ICAI’)
comprise the Consolidated Balance Sheet as at 31 together with the ethical requirements that are
December 2024, the Consolidated Statement of relevant to our audit of the consolidated financial
Profit and Loss (including Other Comprehensive statements under the provisions of the Act and
Income), the Consolidated Statement of Cash the rules thereunder, and we have fulfilled our
Flow and the Consolidated Statement of Changes other ethical responsibilities in accordance with
in Equity for the year then ended, and notes to these requirements and the Code of Ethics. We
the consolidated financial statements, including a believe that the audit evidence we have obtained
material accounting policy information and other together with the audit evidence obtained by the
explanatory information (hereinafter referred to other auditors in terms of their reports referred
as the “consolidated financial statements”). to in paragraph 15 of the Other Matters section
2. In our opinion and to the best of our information below, is sufficient and appropriate to provide a
and according to the explanations given to us basis for our opinion.
and based on the consideration of the reports
Key Audit Matters
of the other auditors on separate financial
statements and on the other financial information 4. 
Key audit matters are those matters that,
of the subsidiaries, associates and joint venture the in our professional judgment and based on
aforesaid consolidated financial statements give the consideration of the reports of the other
the information required by the Companies Act, auditors on separate financial statements of the
2013 (‘the Act’) in the manner so required and give subsidiaries, associates and joint venture, were of
a true and fair view in conformity with the Indian most significance in our audit of the consolidated
Accounting Standards (‘Ind AS’) specified under financial statements of the current period. These
section 133 of the Act, read with the Companies matters were addressed in the context of our
(Indian Accounting Standards) Rules, 2015, and audit of the consolidated financial statements as
other accounting principles generally accepted in a whole, and in forming our opinion thereon, and
India of the consolidated state of affairs of the Group, we do not provide a separate opinion on these
its associates and joint venture, as at 31 December matters.
2024, and their consolidated profit (including other
comprehensive income), consolidated statement of 5. 
We have determined the matter(s) described
cash flow and the consolidated changes in equity below to be the key audit matters to be
for the year ended on that date. communicated in our report.

Key audit matter How our audit addressed the key audit matter
Impairment assessment of intangible assets Our audit procedures included, but were not limited, to the
including Goodwill following:

(Refer note 3(e) and 3(k) for accounting policies on • 

Obtained an understanding of the management’s
Intangibles assets and Business combinations and process for identification of cash generating unit and
goodwill respectively. Further refer note 5A and processes performed by the management for their
note 5B to the consolidated financial statements) impairment testing;

226 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
The Group carries Goodwill and franchisee rights/ • Assessed the process by which management prepared
trademarks as intangible assets having indefinite its cash flow forecasts and held discussions with
life amounting to ` 3,009.37 million and ` 8,946.08 management to understand the assumptions used
million respectively, that are required to be tested and estimates made by them for determining such
for impairment by the management on an annual projections;
basis in accordance with Ind AS 36, Impairment of
• 
Tested the design and operating effectiveness
Assets.
of internal controls over such identification and
impairment test procedures;
The aforesaid assessment of the impairment
testing involves significant judgement around the •  Assessed the appropriateness of the Group’s
determination of the recoverable amounts, being accounting policies, including those relating to
the higher of value in use and fair value less costs recognition, measurement and impairment of
of disposal. Recoverable amounts are based on intangibles by comparing with the applicable Ind AS;
management’s view of the future cash flows and
• 
Reviewed the valuation report obtained by the
prospects of the business, the appropriate discount
management from an independent valuer for
rates and other industry specific risk factors.
Franchise rights and assessed the professional
competence, skills and objectivity for performing the
The key judgements in determining the recoverable
required valuations;
amounts relates to the forecast of future cash
flows based on strategy using macroeconomic •  Assessed the appropriateness of the significant
assumptions such as industry growth, inflation assumptions as well as the Group’s valuation model
and expected growth in market share, capital with the support of auditor’s valuation specialists, who
expenditure and working capital requirements, assess the reasonableness of assumptions used and
among others. valuation methodology applied relating to discount
rate, risk premium, industry growth rate etc. This
Changes in the management forecasts or included a discussion of the expected development of
assumptions can impact the assessment of the the business and results as well as of the underlying
discounted cash flows. assumptions used with those responsible for the
planning process;
Considering the materiality of the amounts
• 
Assessed the robustness of financial projections
involved and significant degree of judgement
prepared by the management by comparing
and subjectivity involved in the estimates and key
projections for previous financial years with actual
assumptions used in determining the forecasted
results realised and discussed significant deviations, if
cash flows used in the impairment evaluation, which
any, with the management;
are dependent on current and future economic
factors and trading conditions varying for different • 
Tested mathematical accuracy of the projections
economic and geographical territories, impairment and performed a sensitivity analysis for reasonably
assessment of Goodwill and the franchise rights/ possible changes in the sales growth, discount rate
trademarks was determined as a key audit matter. applied and the long-term growth rate; and

• 
Evaluated the adequacy and appropriateness of
disclosures made by the Group in the consolidated
financial statements, as required by the applicable
provisions of the Act and Ind AS.
Claims, Appeals and Litigations – provisions and Our audit procedures included, but were not limited to, the
contingent liabilities following:

(Refer note 43 to the consolidated financial • 

Assessed the appropriateness of the Group’s
statements for the amounts of contingent liabilities) accounting policies relating to provisions and
contingent liabilities with the applicable accounting
The Group is involved in various direct, indirect tax
standards;
and other claims, appeals and litigations (hereafter,
referred to as “Matters”) that are pending with •  Assessed the Group’s process and the underlying
different statutory authorities and judicial courts. controls for identification of the pending matters
The management exercises significant judgement and completeness for financial reporting and also for
for determining the need for and the amount of monitoring of significant developments in relation to
provisions, for any liabilities, arising from these such pending matters;
matters.

Annual Report 2024 227

 Key audit matter How our audit addressed the key audit matter
This judgement is dependent on a number of •  Assessed the management’s assumptions and
significant assumptions and evaluations which estimates in respect of matters, including the liabilities
involves interpreting the various applicable rules, or provisions recognised or contingent liabilities
regulations, practices and considering precedents disclosed in the consolidated financial statements. This
in the various jurisdictions including the opinions involved assessing the probability of an unfavorable
received from various legal counsels. outcome of a given proceeding and the reliability of
estimates of related amounts based on the various
This matter is considered as a key audit matter, legal counsel opinions received by the Group;
in view of the uncertainty regarding the •  Recomputed the arithmetical accuracy of the
outcome of these matters, the significance of the underlying calculations supporting the provisions
amounts involved and the subjectivity involved recorded from the supporting evidences including the
in management’s judgement as to whether any correspondence with various authorities;
amount should be recognised as a provision or
• 
Assessed the management’s conclusions through
be disclosed or not as a contingent liability in the
understanding relevant judicial precedents in similar
consolidated financial statements.
cases and the applicable rules and regulations and
through a discussion with Company’s legal department
and legal counsels appointed by the Company;
• 
Obtained legal opinions and confirmation on
completeness from the Group’s external legal
counsels, where appropriate;
• Engaged auditor’s experts to gain an understanding
of the current status of matters and changes
in the disputes, if any, through discussions with
the management and by reading external advice
received by the Group, where relevant, to validate
management’s conclusions; and
• 
Assessed the appropriateness of the Group’s
description of the accounting policy, disclosures
related to matters and whether these are adequately
presented in the consolidated financial statements.

Business Combination Our audit procedures included, but were not limited, to the
following:
As set out in note 50 to the consolidated financial
statements, the Group has completed the • Obtained and understood the terms of the arrangement
acquisition of 95% share capital in “The Beverage underlying the business acquisition made by the
Company Proprietary Limited” on 26 March Holding Company during the year to confirm the
2024 for a purchase consideration amounting to determination of control and the acquisition date in
` 4,037.26, as per terms of the definitive documents accordance with Ind AS 103;
executed in this regard.
• 
Assessed the competence and objectivity of the
This acquisition has been concluded as a management’s expert and gained an understanding of
business combination under Ind AS 103, ‘Business the work done by the management’s valuation expert.
Combinations’ and has resulted in recognition of
• 
Obtained report of the management’s external
goodwill, franchise rights, own brands, distribution
valuation specialist for the valuations performed
networks, apart from other identifiable assets and
of assets and liabilities acquired for the purpose of
liabilities acquired. The Company has performed
purchase price allocation;
a purchase price allocation by allocating the
purchase consideration paid to the respective • Involved our auditor’s valuation experts to assist us in
fair values of the assets and liabilities acquired as validating the valuation assumptions and methodology
above. considered by the management’s expert to allocate
the purchase price to identifiable assets and liabilities;

228 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
The identification and valuation of acquired assets • 
Assessed the reasonableness of the management
and liabilities including intangible assets involve estimates and judgements used to fair value the
significant management judgement in terms of identifiable assets and liabilities and identifiable
making estimates and assumptions including the intangible assets acquired;
discount rate and growth rate assumptions which
• 
Evaluated the appropriateness and adequacy of
have high estimation uncertainty.
disclosures given in the consolidated financial
Considering the materiality of the amount statements, including disclosure of significant
involved and significant degree of judgement assumptions and judgements, in accordance with
and subjectivity involved in the estimates and applicable accounting standards.
assumptions used in determining the fair value of
assets and liabilities acquired, we have determined
the accounting for business combination as a key
audit matter for the current year audit.

Information other than the Consolidated financial statements that give a true and fair view of the
Financial Statements and Auditor’s Report consolidated financial position, consolidated financial
thereon performance including other comprehensive income,
6. 
The Holding Company’s Board of Directors are consolidated changes in equity and consolidated
responsible for the other information. The other cash flows of the Group including its associates and
information comprises the information included in joint venture in accordance with the Ind AS specified
the Management Discussion and Analysis Report under section 133 of the Act read with the Companies
on Corporate Governance and Director’s Report, (Indian Accounting Standards) Rules, 2015, and
but does not include the consolidated financial other accounting principles generally accepted in
statements and our auditor’s report thereon. India. The Holding Company’s Board of Directors are
also responsible for ensuring accuracy of records
Our opinion on the consolidated financial statements including financial information considered necessary
does not cover the other information and we do not for the preparation of consolidated Ind AS financial
express any form of assurance conclusion thereon. statements. Further, in terms of the provisions of
the Act the respective Board of Directors of the
In connection with our audit of the consolidated companies included in the Group, and its associate
financial statements, our responsibility is to read the companies and joint venture company covered
other information and, in doing so, consider whether under the Act are responsible for maintenance of
the other information is materially inconsistent adequate accounting records in accordance with the
with the consolidated financial statements or our provisions of the Act for safeguarding the assets of
knowledge obtained in the audit or otherwise the Group and for preventing and detecting frauds
appears to be materially misstated. If, based on the and other irregularities; selection and application of
work we have performed, we conclude that there is a appropriate accounting policies; making judgments
material misstatement of this other information, we
and estimates that are reasonable and prudent;
are required to report that fact. We have nothing to
and design, implementation and maintenance of
report in this regard.
adequate internal financial controls, that were
operating effectively for ensuring the accuracy and
Responsibilities of Management and Those
completeness of the accounting records, relevant
Charged with Governance for the Consolidated
to the preparation and presentation of the financial
Financial Statements
statements that give a true and fair view and are free
7. The accompanying consolidated financial statements
from material misstatement, whether due to fraud
have been approved by the Holding Company’s
or error. These financial statements have been used
Board of Directors. The Holding Company’s Board
for the purpose of preparation of the consolidated
of Directors are responsible for the matters stated
financial statements by the Board of Directors of the
in section 134(5) of the Act with respect to the
Holding Company, as aforesaid.
preparation and presentation of these consolidated

Annual Report 2024 229

8. In preparing the consolidated financial statements, • 
Obtain an understanding of internal control
the respective Board of Directors of the companies relevant to the audit in order to design
included in the Group and of its associates and audit procedures that are appropriate in the
joint venture are responsible for assessing the circumstances. Under section 143(3)(i) of the
ability of the Group and of its associates and joint Act we are also responsible for expressing
venture to continue as a going concern, disclosing, our opinion on whether the Holding Company
as applicable, matters related to going concern and has adequate internal financial controls with
using the going concern basis of accounting unless reference to financial statements in place and
the Board of Directors either intend to liquidate the the operating effectiveness of such controls.;
Group or to cease operations, or has no realistic
alternative but to do so. • 
Evaluate the appropriateness of accounting
policies used and the reasonableness of
9. 
Those respective Board of Directors are also accounting estimates and related disclosures
responsible for overseeing the financial reporting made by management;
process of the companies included in the Group and
of its associates and joint venture • Conclude on the appropriateness of Board of
Directors’ use of the going concern basis of
Auditor’s Responsibilities for the Audit of the accounting and, based on the audit evidence
Consolidated Financial Statements obtained, whether a material uncertainty exists
10. Our objectives are to obtain reasonable assurance related to events or conditions that may cast
about whether the consolidated financial statements significant doubt on the ability of the Group and
as a whole are free from material misstatement, its associates and joint venture to continue as a
whether due to fraud or error, and to issue an going concern. If we conclude that a material
auditor’s report that includes our opinion. Reasonable uncertainty exists, we are required to draw
assurance is a high level of assurance but is not a attention in our auditor’s report to the related
guarantee that an audit conducted in accordance disclosures in the financial statements or, if
with Standards on Auditing will always detect a such disclosures are inadequate, to modify our
material misstatement when it exists. Misstatements opinion. Our conclusions are based on the audit
can arise from fraud or error and are considered evidence obtained up to the date of our auditor’s
material if, individually or in the aggregate, they report. However, future events or conditions
could reasonably be expected to influence the may cause the Group and its associates and
economic decisions of users taken on the basis of joint venture to cease to continue as a going
these consolidated financial statements. concern;

11. 
As part of an audit in accordance with Standards • 
Evaluate the overall presentation, structure
on Auditing specified under section 143(10) of the and content of the financial statements,
Act we exercise professional judgment and maintain including the disclosures, and whether the
professional skepticism throughout the audit. financial statements represent the underlying
We also: transactions and events in a manner that
achieves fair presentation; and
• 
Identify and assess the risks of material
misstatement of the consolidated financial • 
Obtain sufficient appropriate audit evidence
statements, whether due to fraud or error, regarding the financial statements of the
design and perform audit procedures responsive entities or business activities within the
to those risks, and obtain audit evidence that Group, and its associates and joint venture,
is sufficient and appropriate to provide a basis to express an opinion on the consolidated
for our opinion. The risk of not detecting a financial statements. We are responsible for the
material misstatement resulting from fraud direction, supervision and performance of the
is higher than for one resulting from error, as audit of financial statements of such entities
fraud may involve collusion, forgery, intentional included in the financial statements, of which
omissions, misrepresentations, or the override we are the independent auditors. For the other
of internal control; entities included in the financial statements,

230 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

year ended 31 December 2024, as considered in the

which have been audited by the other auditors,
such other auditors remain responsible for the consolidated financial statements, in respect of two
direction, supervision and performance of the associates and one joint venture, whose financial
audits carried out by them. We remain solely information have not been audited by us. Out of
responsible for our audit opinion. the above, annual financial information of one joint
venture included in the Statement with the Group’s
12. 
We communicate with those charged with share of net loss (including other comprehensive
governance regarding, among other matters, the income) of ` 12.50 million for the year ended 31
planned scope and timing of the audit and significant December 2024, as considered in the consolidated
audit findings, including any significant deficiencies financial statements have been audited by one of the
in internal control that we identify during our audit. joint auditors, O P Bagla & Co LLP.

13. We also provide those charged with governance with

These financial statements and financial information
a statement that we have complied with relevant
have been audited by one of the joint auditors, O P
ethical requirements regarding independence, and
Bagla & Co LLP and other auditors whose reports
to communicate with them all relationships and
other matters that may reasonably be thought to have been furnished to us by the management and
bear on our independence, and where applicable, our opinion on the consolidated financial statements,
related safeguards. in so far as it relates to the amounts and disclosures
included in respect of these subsidiaries, associates
14. From the matters communicated with those charged and joint venture, and our report in terms of sub-
with governance, we determine those matters that section (3) of section 143 of the Act in so far as it
were of most significance in the audit of the financial relates to the aforesaid subsidiaries, associates and
statements of the current period and are therefore joint venture, are based solely on the reports of one
the key audit matters. We describe these matters of the joint auditors, O P Bagla & Co LLP and the
in our auditor’s report unless law or regulation
other auditors.
precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine
Our opinion above on the consolidated financial
that a matter should not be communicated in our
statements, and our report on other legal and
report because the adverse consequences of doing
so would reasonably be expected to outweigh the regulatory requirements below, are not modified in
public interest benefits of such communication. respect of the above matters with respect to our
reliance on the work done by and the reports of O P
Other Matters Bagla & Co LLP and the other auditors.

15. 
We did not audit the financial statements of fourteen
Report on Other Legal and Regulatory
subsidiaries, whose financial statements reflects
Requirements
total assets of ` 73,775.58 million as at 31 December
2024, total revenues of ` 72,166.86 million and 16. As required by section 197(16) of the Act based on
net cash inflows amounting to ` 236.23 million for our audit and on the consideration of the reports
of one of the joint auditors and the other auditors,
the year ended on that date, as considered in the
referred to in paragraph 15, on separate financial
consolidated financial statements. Out of the above,
statements of the subsidiaries, associates and joint
financial statement of one subsidiary included in the
venture, we report that the Holding Company and
Statement whose financial statement reflects total
one subsidiary incorporated in India whose financial
assets of ` 2,906.75 million as at 31 December 2024,
statements have been audited under the Act have
total revenues of ` 1,729.54 million, and net cash paid remuneration to their respective directors
outflows of ` (81.91) million for the year ended on during the year in accordance with the provisions
that date, as considered in the consolidated financial of and limits laid down under section 197 read with
statements have been audited by one of the joint Schedule V to the Act. Further, we report that the
auditors, O P Bagla & Co LLP. provisions of section 197 read with Schedule V to
the Act are not applicable to Fifteen subsidiaries,
The consolidated financial statements also include Two associates and one joint venture Company,
the Group’s share of net loss (including other since none of such companies is a public company
comprehensive income) of ` 14.78 million for the as defined under section 2(71) of the Act.

Annual Report 2024 231

17. As required by clause (xxi) of paragraph 3 of Companies (Auditor’s Report) Order, 2020 (‘the Order’) issued by
the Central Government of India in terms of section 143(11) of the Act based on the consideration of the Order
reports issued till date by us, of Holding Company included in the consolidated financial statements and covered under
the Act we report that there are no qualifications or adverse remarks reported in the respective Order reports of such
companies. Further, following are the companies included in the consolidated financial statements for the year ended 31
December 2024 and covered under that Act that are audited by one of the joint auditors and other auditors, for which
the respective reports under section 143(11) of the Act of such companies have not yet been issued by the respective
auditors (on account of different financial year followed by these companies), as per information and explanation given
to us by the management in this respect.

S. Name CIN Subsidiary/ Associate/ Remarks

No Joint Venture
1 Lunarmech Technologies U72900DL2009PTC190619 Subsidiary Company follows
Private Limited different financial year
2 Clean Max Tav Private U40300MH2022PTC389259 Associate Company follows
Limited different financial year
3 Houban Energy 7 Private U40105TG2021PTC157634 Associate Company follows
Limited different financial year
4 IDVB Recycling U35105DL2022PTC398736 Joint Venture Company follows
Operations Private different financial year
Limited

18. As required by section 143(3) of the Act, based on 

d) 
In our opinion, the aforesaid consolidated
our audit and on the consideration of the reports financial statements comply with Ind AS
of one of the joint auditors and other auditors on specified under section 133 of the Act read with
separate financial statements of the subsidiary, the Companies (Indian Accounting Standards)
associates and joint venture incorporated in India Rules, 2015;
whose financial statements have been audited under e) 
On the basis of the written representations
the Act, we report, to the extent applicable, that: received from the directors of the Holding
a) 
We have sought and obtained all the Company, and taken on record by the Board
information and explanations which to the best of Directors of the Holding Company, and
of our knowledge and belief were necessary the reports of the statutory auditors of its
subsidiary, associates and joint venture, covered
for the purpose of our audit of the aforesaid
under the Act, none of the directors of the
consolidated financial statements;
Group companies, its associate companies and
b) 
In our opinion, proper books of account as joint venture company, are disqualified as on
required by law relating to preparation of the 31 December 2024 from being appointed as a
aforesaid consolidated financial statements director in terms of section 164(2) of the Act.
have been kept so far as it appears from our
f) The modifications relating to the maintenance
examination of those books and the reports
of accounts and other matters connected
of one of the joint auditors and other auditors therewith with respect to the consolidated
except for the matters stated in paragraph 18(h) financial statements are as stated in paragraph
(vi) below on reporting under Rule 11(g) of the 18(b) above on reporting under section 143(3)
Companies (Audit and Auditors) Rules, 2014 (as (b) of the Act and paragraph 18(h)(vi) below
amended); on reporting under Rule 11(g) of the Companies

c) 
The consolidated financial statements dealt (Audit and Auditors) Rules, 2014 (as amended);
with by this report are in agreement with the g) 
With respect to the adequacy of the internal
relevant books of account maintained for the financial controls with reference to financial
purpose of preparation of the consolidated statements of the Holding Company, and
financial statements; its subsidiary company, associates and joint

232 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

venture covered under the Act, and the associates and joint venture company
operating effectiveness of such controls, refer respectively that, to the best of their
to our separate report in ‘Annexure II’ wherein knowledge and belief, as disclosed in
we have expressed an unmodified opinion; and note 61(e) to the consolidated financial
statements, no funds have been
h) With respect to the other matters to be included
advanced or loaned or invested (either
in the Auditor’s Report in accordance with Rule
from borrowed funds or securities
11 of the Companies (Audit and Auditors) Rules,
premium or any other sources or kind
2014 (as amended), in our opinion and to the
of funds) by the Holding Company
best of our information and according to the
or its subsidiary company, associates
explanations given to us and based on the
and joint venture company to or in
consideration of the report of one of the joint
any person(s) or entity(ies), including
auditors and other auditors on separate financial
foreign entities (‘the intermediaries’),
statements and other financial information
with the understanding, whether
of the subsidiary, associates and joint venture
recorded in writing or otherwise,
incorporated in India whose financial statements
that the intermediary shall, whether,
have been audited under the Act:
directly or indirectly lend or invest in
i. 
The consolidated financial statements other persons or entities identified
disclose the impact of pending litigations in any manner whatsoever by or on
on the consolidated financial position of behalf of the Holding Company, or any
the Group, its associates and joint venture such subsidiary company, associates
as detailed in Note 43 to the consolidated and joint venture company (‘the
financial statements; Ultimate Beneficiaries’) or provide
any guarantee, security or the like on
ii. 
The Holding Company, its subsidiary behalf the Ultimate Beneficiaries;
companies, associates and joint venture
company did not have any long-term b. 
The respective managements of the
contracts including derivative contracts for Holding Company and its subsidiary
which there were any material foreseeable company, associates and joint venture
losses as at 31 December 2024; company incorporated in India whose
financial statements have been audited
iii. 
There has been no delay in transferring under the Act have represented to
amounts, required to be transferred, to us and one of the joint auditor and
the Investor Education and Protection other auditors of such subsidiary
Fund by the Holding Company during company, associates and joint venture
the year ended 31 December 2024. There company respectively that, to the
were no amounts which were required to best of their knowledge and belief,
be transferred to the Investor Education as disclosed in the note 61(f) to the
and Protection Fund by the subsidiary accompanying consolidated financial
company, associates and joint venture statements, no funds have been
covered under the Act, during the year received by the Holding Company or
ended 31 December 2024; its subsidiary company, associates
and joint venture company from any
iv. a. 
The respective managements of the person(s) or entity(ies), including
Holding Company and its subsidiary foreign entities (‘the Funding Parties’),
company, associates and joint venture with the understanding, whether
company incorporated in India whose recorded in writing or otherwise,
financial statements have been audited that the Holding Company, or any
under the Act have represented to us such subsidiary company, associates
and one of the joint auditor and other and joint venture company shall,
auditors of such subsidiary company,

Annual Report 2024 233

 whether directly or indirectly, lend which are companies incorporated in India
or invest in other persons or entities and audited under the Act, except for
identified in any manner whatsoever the instances mentioned below including
by or on behalf of the Funding Party subsidiary company where feature of
(‘Ultimate Beneficiaries’) or provide recording audit trail (edit log) was not
any guarantee, security or the like on enabled for the period 01 January 2024 to
behalf of the Ultimate Beneficiaries; 31 March 2024 , the aforesaid Companies,
and in respect of financial year commencing
on 01 January 2024, have used accounting
c. 
Based on such audit procedures
softwares for maintaining their books of
performed by us and that performed
account which have a feature of recording
by the auditors of the subsidiary
audit trail (edit log) facility and the same
company, associates and joint venture
have been operated throughout the year
company, as considered reasonable
and appropriate in the circumstances, for all relevant transactions recorded in
nothing has come to our or other the software. Further, during the course
auditors’ notice that has caused us or of our audit and based on the reports of
the other auditors to believe that the the respective auditors of the subsidiary,
management representations under associates and joint venture company,
sub-clauses (a) and (b) above contain we did not come across any instance of
any material misstatement. audit trail feature being tampered with,
other than the consequential impact of the
v. 
The interim dividend declared and paid matter mentioned below
by the Holding Company during the year
ended 31 December 2024 and until the date a. 
One accounting software used for
of this audit report is in compliance with maintenance of books of accounts of
section 123 of the Act. The final dividend the Holding Company and accounting
paid by the Holding Company during the software used for maintenance of
year ended 31 December 2024 in respect books of accounts by subsidiary
of such dividend declared for the previous company and Joint venture Company,
year is in accordance with section 123 of did not have a feature of recording
the Act to the extent it applies to payment audit trail (edit log) facility enabled
of dividend. at the database level to log any direct
data changes;
As stated in note 62(i) to the accompanying
consolidated financial statements, the b. 
One associate has used an
Board of Directors of the Holding Company accounting software for the period
have proposed final dividend for the year 01 January 2024 till 31 March 2024 for
ended 31 December 2024 which is subject maintaining books of account, which
to the approval of the members at the is operated by a third-party software
ensuing Annual General Meeting. The service provider. In the absence of
dividend declared is in accordance with reporting on compliance with audit
section 123 of the Act to the extent it trail requirements in the independent
applies to declaration of dividend. auditor’s report in relation to controls
at service organization, we are unable
vi. Based on our examination which included
to comment on whether the feature of
test checks performed by us on the Holding
recording audit trail (edit log) facility
Company and reports of the respective
was enabled at the database level to
auditors of its subsidiary company,
log any direct data changes.
associates and joint venture company,

234 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

c. 
In the absence of reporting As proviso to Rule 3(1) of the Companies
on compliance with audit trail (Accounts) Rules, 2014 applies to the Company
requirements in the independent for the financial year commencing on 01
auditor’s report for accounting January 2024, hence, reporting under Rule
software used by two associates 11(g) of Companies (Audit and Auditors) Rules,
for the period 01 April 2024 to 31 2014 on preservation of audit trail as per the
December 2024, on account of statutory requirements for record retention
different financial years adopted by is not applicable for the financial year ended
these Companies, we are unable to 31 December 2024.
comment on whether the audit trail
feature of the accounting softwares
in the companies were enabled and
operated through the period form
01 April 2024 to 31 December 2024.

For J C Bhalla & Co For O P Bagla & Co LLP

Chartered Accountants Chartered Accountants
Firm’s Registration No. 001111N Firm’s Registration No: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal

Partner Partner
Membership No: 505002 Membership No. 094155
UDIN: 25505002BMIKXI9996 UDIN: 25094155BMKSDQ7167
Place: Gurugram Place: Gurugram
Date: 10 February 2025 Date: 10 February 2025
B-5, Sector-6, Noida B-225, 5th Floor, Okhla Industrial Area,
Uttar Pradesh 201301 Phase 1, New Delhi 110020

Annual Report 2024 235

Annexure I

List of entities included in the consolidated financial statements

Holding Company
1. Varun Beverages Limited

Subsidiaries
1. Varun Beverages (Nepal) Private Limited

2. Varun Beverages Lanka (Private) Limited

3. Ole Spring Bottlers (Private) Limited

4. Varun Beverages Morocco SA

5. Varun Beverages (Zambia) Limited

6. Varun Beverages (Zimbabwe) (Private) Limited

7. Lunarmech Technologies Private Limited

8. Varun Beverages RDC SAS

9. Varun Beverages International DMCC

10. Varun Beverages South Africa (Pty) Ltd

11. VBL Mozambique, SA

12. The Beverage Company Proprietary Limited, South Africa (with effect from 26 March 2024)

13. The Beverage Company Bidco Proprietary Limited (with effect from 26 March 2024)

14. Little Green Beverages Proprietary Limited (with effect from 26 March 2024)

15. Softbev Proprietary Limited (with effect from 26 March 2024)

16. Varun Foods (Zimbabwe) (Private) Limited (with effect from 22 May 2024)

Associates
1. Clean Max Tav Private Limited

2. Huoban Energy 7 Private Limited

Joint Venture
1. IDVB Recycling Operations Private Limited

236 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure II
Independent Auditor’s Report on the internal financial controls with reference to Consolidated financial statements
under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

1. In conjunction with our audit of the consolidated the Standards on Auditing issued by the Institute of
financial statements of Varun Beverages Limited (‘the Chartered Accountants of India (‘ICAI’) prescribed
Holding Company’) and its subsidiaries (the Holding under Section 143(10) of the Act, to the extent
Company and its subsidiaries together referred to as applicable to an audit of internal financial controls with
‘the Group’), its associates and joint venture as at reference to financial statements, and the Guidance
and for the year ended 31 December 2024, we have Note on Audit of Internal Financial Controls Over
audited the internal financial controls with reference Financial Reporting (‘the Guidance Note’) issued by
to financial statements of the Holding Company, its the ICAI. Those Standards and the Guidance Note
subsidiary company, its associate companies and require that we comply with ethical requirements
joint venture company, which are companies covered and plan and perform the audit to obtain reasonable
under the Act, as at that date. assurance about whether adequate internal financial
controls with reference to financial statements were
Responsibilities of Management and Those established and maintained and if such controls
Charged with Governance for Internal Financial operated effectively in all material respects.
Controls
2. 
The respective Board of Directors of the Holding 4. 
Our audit involves performing procedures to
Company, its subsidiary company, its associate obtain audit evidence about the adequacy of the
companies and joint venture company, which are internal financial controls with reference to financial
companies covered under the Act, are responsible statements and their operating effectiveness. Our
for establishing and maintaining internal financial audit of internal financial controls with reference
controls based on the internal financial controls to financial statements includes obtaining an
with reference to financial statements criteria understanding of such internal financial controls,
established by the Company considering the assessing the risk that a material weakness exists,
essential components of internal control stated in and testing and evaluating the design and operating
the Guidance Note on Audit of Internal Financial effectiveness of internal control based on the
Controls over Financial Reporting issued by the assessed risk. The procedures selected depend on
Institute of Chartered Accountants of India. These the auditor’s judgement, including the assessment
responsibilities include the design, implementation of the risks of material misstatement of the financial
and maintenance of adequate internal financial statements, whether due to fraud or error.
controls that were operating effectively for ensuring
the orderly and efficient conduct of the Company’s 5. We believe that the audit evidence we have obtained
business, including adherence to the Company’s and the audit evidence obtained by the other
policies, the safeguarding of its assets, the prevention auditors in terms of their reports referred to in the
and detection of frauds and errors, the accuracy and Other Matter paragraph below, is sufficient and
completeness of the accounting records, and the appropriate to provide a basis for our audit opinion
timely preparation of reliable financial information, on the internal financial controls with reference to
as required under the Act. financial statements of the Holding Company, its
subsidiary company and joint venture company as
Auditor’s Responsibility for the Audit of the aforesaid.
Internal Financial Controls with Reference to
Financial Statements Meaning of Internal Financial Controls with
3. 
Our responsibility is to express an opinion on Reference to Financial Statements
the internal financial controls with reference to 6. A company’s internal financial controls with reference
financial statements of the Holding Company, its to financial statements is a process designed to
subsidiary company, its associate companies and provide reasonable assurance regarding the reliability
joint venture company, as aforesaid, based on our of financial reporting and the preparation of financial
audit. We conducted our audit in accordance with statements for external purposes in accordance

Annual Report 2024 237

 with generally accepted accounting principles. A effectively as at 31 December 2024, based on the
company’s internal financial controls with reference internal financial controls with reference to financial
to financial statements include those policies and statements criteria established by the Company
procedures that (1) pertain to the maintenance of considering the essential components of internal
records that, in reasonable detail, accurately and fairly control stated in the Guidance Note on Audit of
reflect the transactions and dispositions of the assets Internal Financial Controls over Financial Reporting
of the company; (2) provide reasonable assurance issued by the Institute of Chartered Accountants of
that transactions are recorded as necessary to permit India.
preparation of financial statements in accordance
with generally accepted accounting principles, and Other Matter
that receipts and expenditures of the company are 9. We did not audit the internal financial controls with
being made only in accordance with authorisations of reference to financial statements insofar as it relates
management and directors of the company; and (3) to one subsidiary company, which is company
provide reasonable assurance regarding prevention covered under the Act, whose financial statements
or timely detection of unauthorised acquisition, use,
reflect total assets of ` 2,906.75 million and net assets
or disposition of the company’s assets that could
of ` 2,041.21 million as at 31 December 2024 , total
have a material effect on the financial statements.
revenues of ` 1,729.54 million and net cash outflows
amounting to ` (81.91) million for the year ended on
Inherent Limitations of Internal Financial
that date, as considered in the consolidated financial
Controls with Reference to Financial Statements
statements. The consolidated financial statements
7. 
Because of the inherent limitations of internal also include the Group’s share of net loss (including
financial controls with reference to financial other comprehensive loss) of ` 12.50 million for the
statements, including the possibility of collusion or year ended 31 December 2024, in respect of one
improper management override of controls, material joint venture company, which is company covered
misstatements due to error or fraud may occur and under the Act, whose internal financial controls
not be detected. Also, projections of any evaluation with reference to financial statements have not
of the internal financial controls with reference to
been audited by us. The internal financial controls
financial statements to future periods are subject
with reference to financial statements in so far as it
to the risk that the internal financial controls with
relates to such subsidiary company and joint venture
reference to financial statements may become
company have been audited by one of the joint
inadequate because of changes in conditions, or
auditors, O P Bagla & Co LLP whose reports have
that the degree of compliance with the policies or
been furnished to us by the management and our
procedures may deteriorate.
report on the adequacy and operating effectiveness
of the internal financial controls with reference to
Opinion
financial statements for the Holding Company its
8. 
In our opinion and based on the consideration of subsidiary company and joint venture company, as
the reports of the other auditor on internal financial aforesaid, under Section 143(3)(i) of the Act in so
controls with reference to financial statements of far as it relates to such subsidiary company and joint
the subsidiary company and joint venture company, venture company is based solely on the reports of
the Holding Company its subsidiary company, and
the O P Bagla & Co LLP. Our opinion is not modified
joint venture company which are companies covered
in respect of this matter with respect to our reliance
under the Act, have in all material respects, adequate
on the work done by and on the report of the
internal financial controls with reference to financial
O P Bagla & Co LLP.
statements and such controls were operating

238 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

10. 
We did not audit the internal financial controls to financial statements insofar as it relates to the
with reference to financial statements in so far as aforesaid associates, which are companies covered
it relates to two associate companies, which are under the Act, is solely based on the corresponding
companies covered under the Act, in respect of internal financial controls with reference to financial
which, the Group’s share of net loss (including statements reports certified by the management
other comprehensive loss) of ` 2.28 million for
of such companies. In our opinion and according
the year ended 31 December 2024 has been
to the information and explanations given to us by
considered in the consolidated financial statements.
the management, these financial information are not
The internal financial controls with reference to
financial statements of these associate companies, material to the Group. Our opinion is not modified
which are companies covered under the Act, are in respect of the above matter with respect to
unaudited and our opinion under Section 143(3)(i) our reliance on the internal financial controls with
of the Act on adequacy and operating effectiveness reference to financial statements reports certified by
of the internal financial controls with reference the management.

For J C Bhalla & Co For O P Bagla & Co LLP

Chartered Accountants Chartered Accountants
Firm’s Registration No. 001111N Firm’s Registration No: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal

Partner Partner
Membership No: 505002 Membership No. 094155
UDIN: 25505002BMIKXI9996 UDIN: 25094155BMKSDQ7167
Place: Gurugram Place: Gurugram
Date: 10 February 2025 Date: 10 February 2025
B-5, Sector-6, Noida B-225, 5th Floor, Okhla Industrial Area,
Uttar Pradesh 201301 Phase 1, New Delhi 110020

Annual Report 2024 239

Consolidated Balance Sheet
As at 31 December 2024
(` in million)
Notes As at As at
31 December 2024 31 December 2023
Assets
Non-current assets
(a) Property, plant and equipment 4A 106,225.51 68,031.32
(b) Capital work-in-progress 4B 11,623.43 19,222.22
(c) Right of use assets 4C 13,631.22 10,347.07
(d) Goodwill 5A 3,009.37 242.30
(e) Other intangible assets 5B 11,151.26 5,471.00
(f) Intangible assets under development 5C 43.69 -
(g) Investment in associates and joint venture 6 534.47 179.32
(h) Financial assets
(i) Investments 7 60.55 31.51
(ii) Loans 8 218.87 -
(iii) Other financial assets 9 987.26 622.67
(i) Deferred tax assets (Net) 10 196.31 -
(j) Other non-current assets 11 5,117.42 5,368.12
Total non-current assets 152,799.36 109,515.53
Current assets
(a) Inventories 12 27,912.34 21,505.33
(b) Financial assets
(i) Trade receivables 13 8,458.42 3,593.85
(ii) Cash and cash equivalents 14 22,662.83 2,422.12
(iii) Bank balances other than (ii) above 15 1,837.71 2,176.50
(iv) Others 16 8,356.16 7,388.23
(c) Current tax assets (Net) 17 48.72 3.11
(d) Other current assets 18 9,363.56 5,267.16
Total current assets 78,639.74 42,356.30
Total assets 231,439.10 151,871.83
Equity and liabilities
Equity
(a) Equity share capital 19 6,763.02 6,496.07
(b) Other equity 20 159,335.27 62,868.91
Equity attributable to owners of the Parent Company 166,098.29 69,364.98
(c) Non-controlling interest 1,298.07 1,481.55
Total equity 167,396.36 70,846.53
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 21A 8,406.89 31,889.38
(ia) Lease liabilities 21B 3,570.86 1,978.85
(b) Provisions 22 1,894.34 2,126.44
(c)  Deferred tax liabilities (Net) 10 4,879.09 3,430.11
(d) Other non-current liabilities 23 47.31 68.40
Total non-current liabilities 18,798.49 39,493.18
Current liabilities
(a) Financial liabilities
(i) Borrowings 21C 15,235.76 20,054.49
(ia) Lease liabilities 21D 1,049.03 390.38
(ii) Trade payables
(a)  Total outstanding dues of micro enterprises and small enterprises 24 645.75 767.43
(b) Total outstanding dues of creditors other than micro enterprises 24 14,958.52 6,815.05
and small enterprises
(iii) Other financial liabilities 25 7,043.41 7,638.39
(b) Other current liabilities 26 4,916.55 4,650.93
(c) Provisions 22 739.00 825.43
(d) Current tax liabilities (Net) 27 656.23 390.02
Total current liabilities 45,244.25 41,532.12
Total liabilities 64,042.74 81,025.30
Total equity and liabilities 231,439.10 151,871.83
Material accounting policies 3
The accompanying notes 1 to 63 are an integral part of the consolidated financial statements.
As per our report of even date attached.
For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091
Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649
Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

240 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Profit and Loss

For the year ended 31 December 2024
(` in million, unless otherwise stated)
Notes Year ended Year ended
31 December 2024 31 December 2023
Income
Revenue from operations 28 204,813.28 163,210.63
Other income 29 1,212.68 793.59
Total income 206,025.96 164,004.22
Expenses
Cost of materials consumed 30 82,937.43 70,264.61
Excise duty 4,736.78 2,784.82
Purchases of stock-in-trade 31 6,859.21 4,626.96
Changes in inventories of finished goods, intermediate goods, stock-in-trade (749.40) (842.69)
32
and work-in-progress
Employee benefits expense 33 18,850.26 14,465.87
Finance costs 34 4,503.86 2,680.99
Depreciation and amortisation expense 35 9,473.86 6,809.06
Other expenses 36 45,068.29 35,816.21
Total expenses 171,680.29 136,605.83
Profit before share of loss of associates & joint venture and tax 34,345.67 27,398.39
Share of loss of associates and joint venture 6 (14.78) (4.79)
Profit before tax 34,330.89 27,393.60
Tax expense
(a) Current tax 27 7,502.05 6,290.81
(b) Adjustment of tax relating to earlier years 27 5.28 20.55
(c) Deferred tax charge 10 480.71 64.11
Total tax expense 7,988.04 6,375.47
Net profit for the year 26,342.85 21,018.13
Other comprehensive income 37
(A) Items that will not to be reclassified to profit or loss 288.77 (28.16)
(B) Income tax relating to items that will not be reclassified to profit or loss (67.99) 6.98
(C) Items that will be reclassified to profit or loss 356.41 (58.83)
(D) Income tax relating to items that will be reclassified to profit or loss - -
Total other comprehensive loss 577.19 (80.01)
Total comprehensive income for the year (including non-controlling interest) 26,920.04 20,938.12
Net profit attributable to:
(a) Owners of the Company 25,946.33 20,559.22
(b) Non-controlling interest 396.52 458.91
Other comprehensive income/(loss) attributable to:
(a) Owners of the Company 558.22 (56.45)
(b) Non-controlling interest 18.97 (23.56)
Total comprehensive income attributable to:
(a) Owners of the Company 26,504.55 20,502.77
(b) Non-controlling interest 415.49 435.35
Earnings per equity share of face value of ` 2 each
Basic (`) 41 7.95 6.33
Diluted (`) 41 7.94 6.33
Material accounting policies 3

The accompanying notes 1 to 63 are an integral part of the consolidated financial statements.
As per our report of even date attached.
For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091
Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649
Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

Annual Report 2024 241

Consolidated Statement of Cash Flow
For the year ended 31 December 2024

(Indirect Method) (` in million)

Year ended Year ended
31 December 2024 31 December 2023
A.Operating activities
Profit before tax and share of profit/(loss) in associates and joint 34,345.67 27,398.39
venture
Adjustments to reconcile profit before tax to net cash flows:
Depreciation on property, plant and equipment 8,386.95 6,409.04
Amortisation of intangible assets and right of use assets 1,086.91 400.02
Interest expense at amortised cost 4,503.86 2,680.99
Interest income at amortised cost (419.00) (238.00)
Gain on derecognition of financial instruments (0.08) (0.81)
Gain on sale of current investments (22.47) (3.51)
Excess provisions and liabilities written back (646.15) (322.36)
Share based payments 162.43 78.61
Loss on disposal/written off of property, plant and equipment (Net) 761.96 843.64
Bad debts and advances written off 28.73 3.24
Allowance for expected credit loss 84.85 69.47
Unrealised foreign exchange fluctuation (493.15) 3.26
Operating profit before working capital changes 47,780.51 37,321.98
Working capital adjustments
Increase in inventories (4,787.70) (1,601.73)
Increase in trade receivables (1,332.15) (730.18)
Increase in current and non-current financial assets and other (5,224.30) (4,572.18)
current and non-current assets
Increase in current financial liabilities and other current and 4,650.27 169.28
non-current liabilities and provisions
Total cash from operations 41,086.63 30,587.17
Income tax paid (7,275.66) (6,679.39)
Net cash flows from operating activities (A) 33,810.97 23,907.78

B. Investing activities
Purchase of property, plant and equipment, right of use assets (37,790.10) (32,640.49)
and intangible assets (including adjustment on account of capital
work-in-progress, capital advances and capital creditors)
Proceeds from disposal of property, plant and equipment 386.37 701.31
Consideration paid for acquisition under business combination (4,018.84) -
(Net)
Investment made in associates, joint venture and other (398.98) (215.57)
Purchase of additional stake from minority of a subsidiary (2,000.00) (100.00)
Interest received 281.13 220.16
Proceeds from sale of current investments (Net) 22.47 3.51
Change in other bank balances 350.15 (867.59)
Net cash used in investing activities (B) (43,167.80) (32,898.67)

C. Financing activities
Proceeds from long-term borrowings 17,711.27 24,016.61
Repayment of long-term borrowings (55,084.16) (12,765.22)
Repayment of lease liabilities (1,558.65) (295.07)
Proceeds from short-term borrowings (Net) 1,856.96 3,812.66
Proceeds from issue of equity shares including share premium thereon 75,118.80 44.41
(QIP & ESOPs)
Interest paid (inclusive of interest paid on lease liabilities ` 404.03 (4,649.55) (2,694.42)
(31 December 2023: ` 170.04))

242 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Cash Flow

For the year ended 31 December 2024

(Indirect Method) (` in million)

Year ended Year ended
31 December 2024 31 December 2023
Share issue expenses paid (611.10) -
Proceeds from share application money pending allotment - 3.51
Dividend paid (3,248.20) (2,273.48)
Net cash generated from financing activities (C) 29,535.37 9,849.00
Net change in cash and cash equivalents (D=A+B+C) 20,178.54 858.11
Cash and cash equivalents at the beginning of year (E) 2,422.12 1,543.32
Unrealised exchange difference on translation of cash and cash 62.17 20.69
equivalent in subsidiaries (F)
Cash and cash equivalents at the end of year (G= D+E+F) 22,662.83 2,422.12
(Refer note 14)
Notes:
(a) Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing
activities, including both changes arising from cash flows and non-cash changes pursuant to Ind AS 7:
(` in million)
Non-current Current borrowings Lease Liabilities
borrowings* (Non-current and
current)
Balance as at 01 January 2024 41,911.82 10,032.05 2,369.23
Acquired under business combination 6,209.64 965.66 1,683.27
Cash flows (Net) (37,372.89) 1,856.96 (1,558.65)
Non-cash changes:
Recognition of lease liabilities (net) - - 2,081.98
Impact of fair value changes 27.97 - -
Impact of exchange fluctuations - 11.44 44.06
Balance as at 31 December 2024 10,776.54 12,866.11 4,619.89

(` in million)
Non-current Current borrowings Lease Liabilities
borrowings* (Non-current and
current)
Balance as at 01 January 2023 30,671.17 6,276.95 1,890.02
Cash flows (Net) 11,251.39 3,812.66 (295.07)
Non-cash changes:
Recognition of lease liabilities (net) - - 749.28
Impact of fair value changes (10.74) - -
Impact of exchange fluctuations - (57.56) 25.00
Balance as at 31 December 2023 41,911.82 10,032.05 2,369.23
*includes current maturities of long-term debts amounting to ` 2,369.65 million (31 December 2023: ` 10,022.44 million). (Refer note
21A and 21C)

The accompanying notes 1 to 63 are an integral part of the consolidated financial statements.
As per our report of even date attached.
For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091
Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649
Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

Annual Report 2024 243

244
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024

A. Equity share capital

(` in million)
Particulars Notes Number of shares Amount
Balance as at 01 January 2023 649,549,620 6,495.50
Changes in equity share capital during the year 2023 649,665,356 0.57

Varun Beverages Limited

Balance as at 31 December 2023 19 1,299,214,976 6,496.07
Changes in equity share capital during the year 2024 2,082,295,041 266.95
Balance as at 31 December 2024 19 3,381,510,017 6,763.02

B. Other Equity
(` in million)

Attributable to Owners of the Company

Reserve and surplus

Attributable
Foreign Total
Particulars Note Capital Capital Securities Share option General Retained Share to Non-
currency attributable
reserve on reserve premium outstanding reserve earnings application controlling Total
translation to owners of
consolidation account money interest
reserve the Company
pending (NCI)
allotment
Balance as at 01 January 2023 (2,279.78) 533.93 22,569.56 29.06 444.26 27,398.84 - (4,167.57) 44,528.30 1,131.07 45,659.37
Profit for the year - - - - - 20,559.22 - - 20,559.22 458.91 21,018.13
Other comprehensive income for the year
(Net of deferred taxes)
Re-measurement losses on defined - - - - - (21.08) - - (21.08) (0.10) (21.18)
benefit plans (Net of taxes)#
Exchange differences arising on - - - - - - - (35.37) (35.37) (23.46) (58.83)
translation of foreign operations
Dividend paid** (Refer note 42) - - - - - (2,273.48) - - (2,273.48) - (2,273.48)
Pursuant to exercise of employee stock - - 67.03 (23.19) - - - - 43.84 - 43.84
options
Share application money pending allotment - - - - - - 3.51 - 3.51 - 3.51
Purchase of additional stake in subsidiary (15.13) - - - - - - - (15.13) (84.87) (100.00)
from minority
Recognition of share based payment - - - 79.10 - - - - 79.10 - 79.10
expenses (Refer note 33)
Balance as at 31 December 2023 19 (2,294.91) 533.93 22,636.59 84.97 444.26 45,663.50 3.51 (4,202.94) 62,868.91 1,481.55 64,350.46
 Consolidated Statement of Changes in Equity
For the year ended 31 December 2024

(` in million)

Attributable to Owners of the Company

Reserve and surplus

Attributable
Foreign Total
Particulars Note Capital Capital Securities Share option General Retained Share to Non-
currency attributable
reserve on reserve premium outstanding reserve earnings application controlling Total
translation to owners of
consolidation account money interest
reserve the Company
pending (NCI)
allotment
Profit for the year - - - - - 25,946.33 - - 25,946.33 396.52 26,342.85
Other comprehensive income for the year
(Net of deferred taxes)
Re-measurement gains on defined - - - - - 220.78 - - 220.78 - 220.78
benefit plans (Net of taxes)#
Exchange differences arising on - - - - - - - 337.44 337.44 18.97 356.41
translation of foreign operations
Dividend paid** (Refer note 42) - - - - - (3,248.55) - - (3,248.55) - (3,248.55)
Equity share capital issued during the year - - - - - - (3.51) - (3.51) - (3.51)
pending previous year allotment
Recognition of share based payment - - - 162.43 - - - - 162.43 - 162.43
expenses (Refer note 33)
Pursuant to exercise of employee stock - - 183.56 (62.71) - - - - 120.85 - 120.85
CORPORATE OVERVIEW

options
Additions made on issue of equity share - - 74,734.51 - - - - - 74,734.51 - 74,734.51
capital pursuant to Qualified Institutions
Placement (Refer note 39)
Amount utilised for share issue expenses - - (615.38) - - - - - (615.38) - (615.38)
(Refer note 39)
Purchase of additional stake in subsidiary (1,188.54) - - - - - - - (1,188.54) (811.46) (2,000.00)
from minority
Non controlling interest recognised on - - - - - - - - - 212.49 212.49
acquisition date (Refer note 50(i))
Balance as at 31 December 2024 19 (3,483.45) 533.93 96,939.28 184.70 444.26 68,582.06 - (3,865.50) 159,335.27 1,298.07 160,633.34
# The disaggregation of changes in OCI by each type of reserves in equity is disclosed in Note 37.
**Transaction with owners in their capacity as owners.
STATUTORY REPORTS

The accompanying notes 1 to 63 are an integral part of the consolidated financial statements.
As per our report of even date attached.
For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091
Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649

Annual Report 2024

Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
FINANCIAL STATEMENTS

245
Dated : 10 February 2025 Membership No. F- 5746
Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
1. Corporate information The CFS have been prepared on a historical cost
basis, except for the following assets and liabilities
Varun Beverages Limited (“VBL” or “the Company’’
which have been measured at fair value:
or “Holding Company” or “Parent Company”) is
a public limited Company domiciled in India. Its
i. Derivative financial instruments;
registered office is at F-2/7, Okhla Industrial Area,
Phase-I, New Delhi- 110 020. The Company’s equity ii. 
Certain financial assets and liabilities measured
shares are listed on Bombay Stock Exchange at fair value (refer accounting policy regarding
Limited (BSE) and National Stock Exchange of financial instruments);
India (NSE). The Company was incorporated on 16
iii. 
Defined benefit plans- plan assets measured at
June 1995 with Corporate Identification Number
fair value; and
L74899DL1995PLC069839 under the provisions of
the Companies Act 1956. iv. Share based payments;

The Group presents assets and liabilities in the balance

The Company together with its subsidiaries a joint
sheet based on current/non-current classification.
venture and associates (hereinafter, “the Group”)
An asset is treated as current if it satisfies any of the
is engaged in manufacturing, selling, bottling
following conditions:
and distribution of beverages of Pepsi brand in
geographically pre-defined territories of India, Sri i. Expected to be realised or intended to sold or
Lanka, Nepal, Zambia, Morocco, Zimbabwe, RDC, consumed in normal operating cycle;
Mozambique, South Africa, Lesotho, Eswatini,
ii. Held primarily for the purpose of trading;
Namibia and Botswana as per franchisee agreement
with PepsiCo India Holdings Private Limited iii. 
Expected to be realised within twelve months
(“PepsiCo India”) and its affiliates. The sale of Group’s after the reporting period; or
products is seasonal.
iv. 
Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
2. Basis for preparation
least twelve months after the reporting period.
These Consolidated Financial Statements (“the CFS”)
of the Group have been prepared in accordance with All other assets are classified as non-current.
the Indian Accounting Standards (‘‘Ind AS’’) and
A liability is current if it satisfies any of the following
comply with requirements of Ind AS, stipulations
conditions:
contained in Schedule III (revised) as applicable
under Section 133 of the Companies Act, 2013 (“the i. It is expected to be settled in normal operating
Act”), and other relevant provisions of the Act and cycle;
guidelines issued by the Securities and Exchange
Board of India (SEBI) the Companies (Indian ii. It is held primarily for the purpose of trading;
Accounting Standards) Rules, 2015 as amended from iii. It is due to be settled within twelve months after
time to time and other pronouncements/ provisions the reporting period; or
of applicable laws. These financial statements
are authorised for issue on 10 February 2025 iv. 
There is no unconditional right to defer the
in accordance with a resolution of the Board of settlement of the liability for at least twelve
Directors. The Board of Directors can permit the months after the reporting period.
revision to the standalone financial statements after
The Group classifies all other liabilities as non-current.
obtaining necessary approvals or at the instance of
regulatory authorities as per provisions of the Act.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
These CFS have been prepared using the material
accounting policies and measurement basis
summarised below. These accounting policies have The operating cycle is the time between the acquisition
been used consistently throughout all periods of assets for processing and its realisation in cash and
presented in these consolidated financial statements cash equivalents. The Group has identified twelve
except as mentioned in note 3 (b) below. months as its operating cycle.

246 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
All amounts disclosed in the CFS and notes have Consolidated financial statements are prepared using
been rounded off to the nearest million as per the uniform accounting policies for like transactions and
requirement of Schedule III to the Act, unless otherwise other events in similar circumstances. If a member of
stated. the Group uses accounting policies other than those
adopted in the consolidated financial statements for
2.1. Basis of consolidation like transactions and events in similar circumstances,
The consolidated financial statements comprise the appropriate adjustments are made to that member’s
financial statements of the Company, its subsidiaries financial statements in preparing the consolidated
and associate. Control is achieved when the Group financial statements to ensure conformity with the
is exposed, or has rights, to variable returns from its Group’s accounting policies.
involvement with the investee and has the ability An associate is an entity over which the Group has
to affect those returns through its power over the significant influence, i.e., the power to participate in the
investee. Specifically, the Group controls an investee if financial and operating policy decisions of the investee
and only if the Group has: but not control or joint control over those policies.
• Power over the investee (i.e. existing rights that
The financial statements of all entities used for the
give it the current ability to direct the relevant
purpose of consolidation are drawn up to same
activities of the investee);
reporting date as that of the parent company, i.e.,
• Exposure, or rights, to variable returns from its year ended 31 December. When the end of the
involvement with the investee, and reporting period of the parent is different from that
of a subsidiary/ associate, the subsidiary/ associate
• The ability to use its power over the investee to
prepares, for consolidation purposes, additional
affect its returns.
financial information as of the same date as the
Generally, there is a presumption that a majority of voting financial statements of the parent to enable the
rights result in control. To support this presumption and parent to consolidate the financial information of the
when the Group has less than a majority of the voting subsidiary, unless it is impracticable to do so.
or similar rights of an investee, the Group considers all
The following consolidation procedures are adopted:
relevant facts and circumstances in assessing whether
it has power over an investee, including: Subsidiary
a) 
Combine like items of assets, liabilities, equity,
a) The contractual arrangement with the other vote
income, expenses and cash flows of the parent with
holders of the investee;
those of its subsidiaries. For this purpose, income
b) 
The rights arising from other contractual and expenses of the subsidiary are based on the
arrangements; amounts of the assets and liabilities recognised
c) 
The Group’s voting rights and potential voting in the consolidated financial statements at the
rights; and acquisition date;

d) The size of the Group’s holding of voting rights b) 

Offset (eliminate) the carrying amount of the
relative to the size and dispersion of the holdings parent’s investment in each subsidiary and the
of the other voting rights holders. parent’s portion of equity of each subsidiary.
Business combinations policy explains how to
The Group re-assesses whether or not it controls an
account for any related goodwill; and
investee if facts and circumstances indicate that there
are changes to one or more of the three elements of c) Eliminate in full intragroup assets and liabilities,
control. Consolidation of a subsidiary begins when equity, income, expenses and cash flows relating
the Group obtains control over the subsidiary and to transactions between entities of the group
ceases when the Group loses control of the subsidiary. (profits or losses resulting from intragroup
Assets, liabilities, income and expenses of a subsidiary transactions that are recognised in assets, such as
acquired or disposed of during the year are included inventory and fixed assets, are eliminated in full).
in the consolidated financial statements from the date Ind AS 12 ‘Income Taxes’ applies to temporary
the Group gains control until the date the Group ceases differences that arise from the elimination of
to control the subsidiary.
profits and losses resulting from intragroup
transactions.

Annual Report 2024 247

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024

Profit or loss and each component of Other the Group recognises its share of any changes,
Comprehensive Income (“OCI”) are attributed to the when applicable, in the statement of changes in
equity holders of the parent of the Group and to the equity. Unrealised gains and losses resulting from
non-controlling interests, even if this results in the transactions between the Group and the associate/
non-controlling interests having a deficit balance. joint venture are eliminated to the extent of the
interest in the associate/joint venture. The aggregate
A change in the ownership interest of a subsidiary, without of the Group’s share of profit or loss of an associate/
a loss of control, is accounted for as an equity transaction. joint venture is shown on the face of the Consolidated
If the Group loses control over a subsidiary, it: Statement of Profit and Loss.

• Derecognises the assets (including goodwill) and

After application of the equity method, the Group
liabilities of the subsidiary;
determines whether it is necessary to recognise an
• Derecognises the carrying amount of any impairment loss on its investment in its associate/joint
non-controlling interests; venture. At each reporting date, the Group determines
whether there is objective evidence that the investment
• Derecognises the cumulative translation
in the associate/joint venture is impaired. If there is
differences recorded in equity;
such evidence, the Group calculates the amount of
• Recognises the fair value of the consideration impairment as the difference between the recoverable
received; amount of the associate/joint venture and its carrying
value, and then recognises the loss as ‘Share of loss
• Recognises the fair value of any investment
of associates and joint venture’ in the Consolidated
retained;
Statement of Profit and Loss.
• Recognises any surplus or deficit in Consolidated
Statement of Profit and Loss; Upon loss of significant influence over the associate/
joint venture, the Group measures and recognises any
• Reclassifies the parent’s share of components
retained investment at its fair value. Any difference
previously recognised in OCI to profit or loss or
between the carrying amount of the associate/joint
retained earnings, as appropriate, as would be
required if the Group had directly disposed of the venture upon loss of significant and the fair value of
related assets or liabilities the retained investment and proceeds from disposal
is recognised in the Consolidated Statement of
Associates/Joint Venture Profit and Loss.
Interests in associates/joint venture are accounted for
using the equity method, after initially being recognised On acquisition of control over previously owned
at cost in the consolidated balance sheet. When a associates, the Group re-measures its previously held
member of the Group transacts with an associate of equity interest in the associates at the acquisition
the Group, profits and losses from transactions with date fair value and the difference, if any, between the
the associate/joint venture are recognised in the CFS carrying amount and the fair value is recognised in the
only to the extent of interests in the associate/joint Consolidated Statement of Profit and Loss.
venture that are not related to the Group.
Goodwill is generally computed as the difference
The carrying amount of the investment is adjusted to between the sum of consideration transferred
recognise changes in the Group’s share of net assets of (measured at the fair value) the non-controlling interest
the associate/joint venture since the acquisition date. (“NCI”) in the acquire and the net of the acquisition
Goodwill relating to the associate is included in the date amounts of the identifiable assets acquired and
carrying amount of the investment. the liabilities assumed.

The Consolidated Statement of Profit and Loss reflects 3. Summary of material accounting policies
the Group’s share of the results of operations of the
a) Fair value measurements
associate/joint venture. Any change in OCI of those
investees is presented as part of the Group’s OCI. In 
The Group measures financial instruments
addition, when there has been a change recognised at fair value which is the price that would be
directly in the equity of the associate/joint venture, received to sell an asset or paid to transfer

248 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
a liability in an orderly transaction between to in exchange for those goods or services.
market participants at the measurement date. Revenue towards satisfaction of a performance
The fair value measurement is based on the obligation is measured at the amount of
presumption that the transaction to sell the transaction price (net of variable considerations)
asset or transfer the liability takes place either: allocated to that performance obligation as per
• 
In the principal market for the asset or contractually agreed terms with the customers.
liability, or The transaction price of goods sold and services
rendered is net of variable considerations on
• In the absence of a principal market, in the
account of various discounts and schemes
most advantageous market for the asset or
offered by the Company as part of the contract.
liability.
Revenue is recorded provided the recovery of
All assets and liabilities for which fair value is consideration is probable and determinable.
measured or disclosed in the consolidated financial Revenue from sale of goods and services
statements are categorised within the fair value transferred to distributors/intermediaries are
hierarchy, described as follows, based on the recognised at a point in time.
lowest level input that is significant to the fair value
measurement as a whole: Sale of goods
Revenue from the sale of manufactured and
• Level 1 - Quoted (unadjusted) market prices in
traded goods products is recognised upon
active markets for identical assets or liabilities;
transfer of control of products to the customers
• Level 2 - Valuation techniques for which the which coincides with their delivery to customer
lowest level input that is significant to the fair and is measured at fair value of consideration
value measurement is directly or indirectly received/receivable, net of discounts, amount
observable; and collected on behalf of third parties and
applicable taxes.
• Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair Interest income
value measurement is unobservable. Interest income is recognised on time
The Group uses valuation techniques that are proportion basis taking into account the amount
appropriate in the circumstances and for which outstanding and rate applicable. For all debt
sufficient data are available to measure fair value, instruments measured at amortised cost, interest
maximising the use of relevant observable inputs and income is recorded using the effective interest
minimising the use of unobservable inputs. For assets rate (“EIR”). EIR is the rate that exactly discounts
and liabilities that are recognised in the consolidated the estimated future cash payments or receipts
financial statements on a recurring basis, the Group over the expected life of the financial instrument
determines whether transfers have occurred between or a shorter period, where appropriate, to the
levels in the hierarchy by re-assessing categorisation gross carrying amount of the financial assets.
(based on the lowest level input that is significant to Interest income is included in finance income in
the fair value measurement as a whole) at the end of the Consolidated Statement of Profit and Loss.
each reporting period. Dividends
For the purpose of fair value disclosures, the Group Dividend is recognised when the Group’s right
has determined classes of assets and liabilities on to receive the payment is established, which
the basis of the nature, characteristics and risks of is generally when shareholders approve the
the asset or liability and the level of the fair value dividend.
hierarchy as explained above.
Services rendered
b) Revenue recognition Revenue from service related activities including
Revenue is recognised upon transfer of control management and technical know-how service,
of promised goods or services to customers job work are recognised as and when services
at an amount that reflects the consideration are rendered and on the basis of contractual
to which the Group is expected to be entitled terms with the parties.

Annual Report 2024 249

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
c) Inventories d) Property, plant and equipment
Inventories are valued as follows: Measurement at recognition
Raw materials, components and stores and
i.  Property, plant and equipment and capital work
spares: At lower of cost and net realisable in progress is stated at cost, net of accumulated
value. Cost of inventory comprises all costs depreciation and accumulated impairment
of purchases, duties, taxes (other than losses, if any.
those subsequently recoverable from tax
authorities) and all other costs incurred Cost comprises the purchase price, borrowing
in bringing the inventory to their present costs if capitalization criteria are met and any
location and condition and is determined
directly attributable cost of bringing the asset
on a moving weighted average cost basis.
to its working condition for the intended use.
However, materials and other items held
Any trade discounts and rebates are deducted
for use in the production of inventories are
in arriving at the purchase price. The cost of
not written down below cost if the finished
an item of property, plant and equipment is
products in which they will be incorporated
recognised as an asset if, and only if:
are expected to be sold at or above cost.

Work-in-progress: At lower of cost and

ii.  a. it is probable that future economic benefits
net realisable value. Cost for this purpose associated with the item will flow to the
includes material, labour and appropriate entity; and
allocation of overheads including
depreciation. Cost is determined on a b. 
the cost of the item can be measured
weighted average basis. reliably.
iii. Intermediate goods/ Finished goods:
Subsequent expenditure related to an item of
a) Self-manufactured - At lower of cost property, plant and equipment is added to its
and net realisable value. Cost for this book value only if it increased the future benefits
purpose includes material, labour and
from the existing asset beyond its previously
appropriate allocation of overheads.
assessed standard of performance. All other
Cost is determined on a weighted
expenses on existing assets, including day-
average basis.
to- day repair and maintenance expenditure
and cost of replacing parts, are charged to
b) Traded - At lower of cost and net
the Consolidated Statement of Profit and Loss
realisable value. Cost of inventory
comprises all costs of purchases, duties, for the period during which such expenses
taxes (other than those subsequently are incurred. Expenditure directly relating to
recoverable from tax authorities) and construction activity is capitalized. Indirect
all other costs incurred in bringing expenditure incurred during construction period
the inventory to their present location is capitalized as a part of indirect construction
and condition and is determined on a cost to the extent the expenditure is related
weighted average cost basis. to construction or is incidental thereto. Other
indirect costs incurred during-the construction
Net realisable value is the estimated selling periods which are not related to construction
price in the ordinary course of business, less activity nor are incidental thereto are charged to
estimated costs of completion and estimated the Consolidated Statement of Profit and Loss.
costs necessary to make the sale. Provision
for obsolescence is determined based on 
Value for individual assets acquired for a
management’s assessment and is charged to the consolidated price, the consideration is
Consolidated Statement of Profit and Loss. apportioned to the various assets on a fair value
basis as determined by competent valuers

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Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
Depreciation In case of revaluation of leasehold land, the resulting
amortisation of the total revalued amount is expensed
The management has estimated, supported by
technical assessment, the useful lives of property, off to the Consolidated Statement of Profit and Loss.
plant and equipment. The management believes that
Derecognition
these estimated useful lives are realistic and reflect
fair approximation of the period over which the An item of property, plant and equipment and any
assets are likely to be used. Depreciation is calculated significant part initially recognised is de-recognised
on a straight-line basis over the estimated useful lives upon disposal or when no future economic benefits
of the assets as follows: are expected from its use or disposal. Any gain or
loss arising on de-recognition of the asset (calculated
Description Useful lives
as the difference between the net disposal proceeds
(upto)
or amount of security deposit adjusted and the
Leasehold land Over lease period
Buildings-factory 20-50 years carrying amount of the asset) is included in the
Buildings-others 59-60 years Consolidated Statement of Profit and Loss when the
Plant and equipment 4-20 years asset is de-recognised.
Furniture and fixtures 5-10 years
Delivery vehicles 4-10 years Breakages of containers are adjusted on ‘first
Vehicles (other than delivery 4-7 years bought first broken’ basis, since it is not feasible
vehicles) to specifically identify the broken containers in the
Office equipment 4-10 years fixed assets records
Computer equipment 3-5 years
Containers 4-10 years e) Intangible assets
Post-mix vending machines 5-10 years
Intangible assets are initially recognised at:
and refrigerators (Visi - Cooler)
Power generating assets* 22 years a. In case the assets are acquired separately,
*included in plant and equipment in financial statements.
then at cost,

Freehold land is not depreciated. b. In case the assets are acquired in a business
combination or under any asset purchase
Depreciation on property, plant and equipment is agreement, at fair value.
provided over the useful life of assets as specified in
Schedule II to the Act except where the management, Following initial recognition, intangible assets are
based on independent technical assessment, carried at cost less any accumulated amortisation
depreciates certain assets are over estimated
and accumulated impairment losses.
useful lives which are different from the useful life
prescribed in the Schedule II to the Act. Intangible assets with finite useful life are assessed
The Group has used the remaining useful lives to for impairment whenever there is an indication
compute depreciation on its property, plant and that the intangible assets may be impaired.
equipment, acquired under the business transfer
agreement based on external technical evaluation. Amortisation of other intangible assets are
amortised on a straight-line basis using the
Depreciation on property, plant and equipment
which are added/disposed off during the year is estimated useful life as follows:
provided on a pro-rata basis with reference to the
Intangible assets Useful lives (years)
month of addition/deletion.
Software 3-5 Years
The Group has technically evaluated all the property,
plant and equipment for determining the separate Market infrastructure 5-15 Years
identifiable assets having different useful lives Distribution network 6-10 Years
under the component approach. On technical
Brands 10 Years
evaluation of all separate identifiable components,
the management is of the opinion that they do
not have any different useful life from that of the The franchise rights and trademarks acquired
principal asset. as part of business combinations normally

Annual Report 2024 251

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
have a remaining legal life of not exceeding • The contract involves the use of an identified
ten years but is renewable every ten years at asset – this may be specified explicitly or
little cost and is well established. The Group implicitly, and should be physically distinct or
intends to renew these rights continuously represent substantially all of the capacity of a
and evidence supports its ability to do so. An physically distinct asset. If the supplier has a
analysis of product life cycle studies, market substantive substitution right, then the asset is
and competitive trends provides evidence that not identified;
the product will generate net cash inflows for
• The Group has the right to obtain substantially
the Group for an indefinite period. Therefore,
all of the economic benefits from use of the
these rights have been carried at cost without asset throughout the period of use; and
amortisation, but is tested for impairment
annually, at the cash-generating unit level. • The Group assesses whether it has the right
The assessment of indefinite life is reviewed to direct ‘how and for what purpose’ the
annually to determine whether the indefinite life asset is used throughout the period of use.
continues to be supportable. If not, the change At inception or on reassessment of a contract
in useful life from indefinite to finite is made on that contains a lease component, the Group
a prospective basis. allocates the consideration in the contract to
each lease component on the basis of their
f) Borrowing costs relative stand-alone prices. However, for the
leases of land and buildings in which it is a
Borrowing costs include interest, amortisation
lessee, the Group has elected not to separate
of ancillary costs incurred in connection with
non-lease components and account for the
the arrangement of borrowings and exchange
lease and non-lease components as a single
differences arising from foreign currency
lease component.
borrowings to the extent they are regarded as
an adjustment to the interest cost. Borrowing Measurement and recognition of leases as a lessee
costs, if any, directly attributable to the The Group recognizes a right-of-use asset and a
acquisition, construction or production of an lease liability at the lease commencement date. The
asset that necessarily takes a substantial period right-of-use asset is initially measured at cost, which
of time to get ready for its intended use or sale comprises the initial amount of the lease liability
are capitalized, if any. All other borrowing costs adjusted for any lease payments made at or before
are expensed to the Consolidated Statement of the commencement date, plus any initial direct
Profit and Loss in the period in which they occur. costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
g) Leases underlying asset or the site on which it is located,
The Group as a lessee less any lease incentives received.
The Group enters into an arrangement for lease
The right-of-use asset is subsequently measured at
of buildings and equipments. Such arrangements
cost less any accumulated depreciation, accumulated
are generally for a fixed period but may have
impairment losses (unless such right of use assets
extension or termination options. In accordance
fulfills the requirements of Ind AS 40 - Investment
with Ind AS 116 – Leases, at inception of the
Property and is accounted for as there under), if any
contract, the Group assesses whether a contract
and adjusted for any re-measurement of the lease
is, or contains a lease. A lease is defined as ‘a
liability. The right-of-use asset is depreciated using
contract, or part of a contract, that conveys the
the straight-line method from the commencement
right to control the use an asset (the underlying
date over the shorter of lease term or useful life of
asset) for a period of time in exchange for
right-of-use asset. Right-of-use assets are tested
consideration’.
for impairment whenever there is any indication
To assess whether a contract conveys the right that their carrying amounts may not be recoverable.
to control the use of an identified asset, the Impairment loss, if any, is recognised in the
Group assesses whether: Consolidated Statement of Profit and Loss.

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Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
The lease liability is initially measured at the present The lease payments associated with these leases are
value of the lease payments that are not paid at the recognized as an expense on a straight-line basis
commencement date, discounted using the interest over the lease term.
rate implicit in the lease or, if that rate cannot be readily
The Group as a lessor
determined, the Group’s incremental borrowing rate.
When the Group acts as a lessor, it determines at
Generally, the Group uses its incremental borrowing
lease inception whether each lease is a finance
rate as the discount rate.
lease or an operating lease. To classify each lease,
the Group makes an overall assessment of whether
Lease payments included in the measurement of the
the lease transfers substantially all of the risks and
lease liability comprise the following:
rewards incidental to ownership of the underlying
asset. If this is the case, then the lease is a finance
• 
Fixed payments, including in-substance fixed
lease; if not, then it is an operating lease. As part
payments;
of this assessment, the Group considers certain
• 
Variable lease payments that depend on an indicators such as whether the lease is for the major
index or a rate, initially measured using the part of the economic life of the asset.
index or rate as at the commencement date;
When the Group is an intermediate lessor, it accounts

• 
Amounts expected to be payable under a for its interests in the head lease and the sub-lease
residual value guarantee; and separately. It assesses the lease classification of a
• The exercise price under a purchase option that sub-lease with reference to the right-of-use asset
the Group is reasonably certain to exercise, arising from the head lease, not with reference to
lease payments in an optional renewal period the underlying asset. If a head lease is a short-term
if the Group is reasonably certain to exercise lease to which the Group applies the exemption
an extension option, and penalties for early described above, then it classifies the sub-lease as
an operating lease.
termination of a lease unless the Group is
reasonably certain not to terminate early. The Group recognizes lease payments received
The lease liability is measured at amortized cost using under operating leases as income on a straight-line
the effective interest rate method. It is remeasured basis over the lease term as part of ‘other income’.
when there is a change in future lease payments
The accounting policies applicable to the Group as a
arising from a change in an index or rate, if there
lessor in the comparative period were not different
is a change in the Group’s estimate of the amount
from Ind AS 116 - Leases. However, when the Group
expected to be payable under a residual value
was an intermediate lessor the sub-leases were
guarantee, or if the Group changes its assessment
classified with reference to the underlying asset.
of whether it will exercise a purchase, extension
or termination option. When the lease liability is The Group recognizes lease payments received
remeasured in this way, a corresponding adjustment under operating leases as income on a straight-line
is made to the carrying amount of the right-of-use basis over the lease term. In case of a finance lease,
asset, or is recorded in profit or loss if the carrying finance income is recognised over the lease term
amount of the right-of-use asset has been reduced based on a pattern reflecting a constant periodic rate
to zero, as the case may be. of return on the lessor’s net investment in the lease.
When the Group is an intermediate lessor it accounts
The Group presents right-of-use assets that do not
for its interests in the head lease and the sub-lease
meet the definition of investment property and lease
separately. It assesses the lease classification of a
liabilities as a separate line item in the standalone
sub-lease with reference to the right-of-use asset
financial statements of the Group.
arising from the head lease, not with reference to
The Group has elected not to apply the requirements the underlying asset. If a head lease is a short term
of Ind AS 116 - Leases to short-term leases of all lease to which the Group applies the exemption
assets that have a lease term of 12 months or less and described above, then it classifies the sub-lease as
leases for which the underlying asset is of low value. an operating lease.

Annual Report 2024 253

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
h) Employee benefits excluding amounts included in net interest on
the net defined benefit liability and the return
Contribution to provident and other funds
on plan assets (excluding amounts included in
Retirement benefit in the form of provident net interest on the net defined benefit liability),
fund is a defined contribution scheme. The are recognised immediately in the balance sheet
Group has no obligation, other than the with a corresponding debit or credit to retained
contribution payable to the provident fund. earnings through OCI in the period in which they
The Group recognises contribution payable occur. Re-measurements are not reclassified to
to the provident fund scheme as an expense, profit or loss in subsequent periods.
when an employee renders the related service.
If the contribution payable to the scheme for Past service costs are recognised in Consolidated
service received before the balance sheet date Statement of Profit and Loss on the earlier of:
exceeds the contribution already paid, the
deficit payable to the scheme is recognised • The date of the plan amendment or
as a liability after deducting the contribution curtailment, and
already paid. If the contribution already paid
• The date that the Group recognises related
exceeds the contribution due for services
restructuring cost
received before the balance sheet date, then
excess is recognised as an asset to the extent Net interest is calculated by applying the
that the pre-payment will lead to, for example, a discount rate to the net defined benefit liability
reduction in future payment or a cash refund. or asset.

Gratuity The Group recognises the following changes in

the net defined benefit obligation as an expense
Gratuity is a defined benefit scheme. The
in the Consolidated Statement of Profit and
cost of providing benefits under the defined
Loss:
benefit plan is determined using the projected
unit credit method. The Group recognises
• Service costs comprising current service
termination benefit as a liability and an expense
costs, past-service costs, gains and
when the Group has a present obligation as a
losses on curtailments and non-routine
result of past event, it is probable that an outflow
settlements; and
of resources embodying economic benefits
will be required to settle the obligation and a • Net interest expense or income
reliable estimate can be made of the amount
of the obligation. If the termination benefits fall Compensated absences
due more than twelve months after the balance
The Group treats accumulated leave expected
sheet date, they are measured at present value
to be carried forward beyond twelve months,
of future cash flows using the discount rate
as long-term employee benefit which are
determined by reference to market yields at the
computed based on the actuarial valuation using
balance sheet date on government bonds.
the projected unit credit method at the year
end except for few subsidiary companies where
Gratuity liability is accrued on the basis of
accumulated leave liability is provided on full cost
an actuarial valuation made at the end of the
basis. Actuarial gains/losses are immediately
year. The actuarial valuation is performed
taken to the Consolidated Statement of Profit
by an independent actuary as per projected
and Loss and are not deferred. The Group
unit credit method, except for few subsidiary
presents the leave as a current liability in the
companies where gratuity liability is provided
balance sheet to the extent it does not have
on full cost basis.
an unconditional right to defer its settlement
for twelve months after the reporting date.
Re-measurements, comprising actuarial gains
Where Group has the unconditional legal and
and losses, the effect of the asset ceiling,

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Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
contractual right to defer the settlement for a estimate of the number of equity instruments
period beyond twelve months, the balance is that will ultimately vest. Market performance
presented as a non-current liability. conditions are reflected within the grant date
fair value. Any other conditions attached to
Accumulated leave, which is expected to be an award, but without an associated service
utilized within the next twelve months, is treated requirement, are considered to be non-vesting
as short term employee benefit. The Group conditions.
measures the expected cost of such absences
as the additional amount that it expects to pay Non-vesting conditions are reflected in the fair
as a result of the unused entitlement that has value of an award and lead to an immediate
accumulated at the reporting date. expensing of an award unless there are also
service and/or performance conditions.
All other employee benefits payable/available
within twelve months of rendering the service No expense is recognised for awards that
are classified as short-term employee benefits. do not ultimately vest because non-market
Benefits such as salaries, wages, bonus, etc. performance and/or service conditions have
are recognised in the Consolidated Statement not been met. Where awards include a market
of Profit and Loss in the period in which the or non-vesting condition, the transactions are
employee renders the related service. treated as vested irrespective of whether the
market or non-vesting condition is satisfied,
i) Share-based payments provided that all other performance and/or

Employees (including senior executives) service conditions are satisfied.
of the Group receive remuneration in the
form of share-based payments, whereby When the terms of an equity-settled award are
employees render services as consideration modified, the minimum expense recognised
for equity instruments which are classified as is the expense had the terms had not been
equity-settled transactions. modified, if the original terms of the award are
met. An additional expense is recognised for

The cost of equity-settled transactions is any modification that increases the total fair
determined by the fair value at the date of grant value of the share-based payment transaction,
using an appropriate valuation model. That cost or is otherwise beneficial to the employee as
is recognised as an employee benefit expense measured at the date of modification. Where an
with a corresponding increase in ‘Share option award is cancelled by the parent company or by
outstanding account’ in other equity, over the the counterparty, any remaining element of the
period in which the performance and/or service fair value of the award is expensed immediately
conditions are fulfilled in relation to options through the Statement of Profit and Loss.
granted to employees of the Group.
The dilutive effect of outstanding options is

The cumulative expense recognised for reflected as additional share dilution in the
equity-settled transactions at each reporting computation of diluted earnings per share.
date until the vesting date reflects the extent
to which the vesting period has expired and the j) Foreign currency transactions and translations
parent company’s best estimate of the number The Group’s consolidated financial statements
of equity instruments that will ultimately vest. are presented in INR, which is also the parent
company’s functional currency. Transactions in

Service and non-market performance foreign currencies are initially recorded by the
conditions are not taken into account when Group’s entities at their respective functional
determining the grant date fair value of awards, currency spot rates at the date the transaction
but the likelihood of the conditions being met is first qualifies for recognition. However, for
assessed as part of the parent company’s best practical reasons, the Group uses an average

Annual Report 2024 255

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
rate if the average approximates the actual rate acquisition date fair value and the amount of
at the date of the transaction. any non-controlling interests in the acquiree.
For each business combination, the Group
Monetary assets and liabilities denominated elects whether to measure the non-controlling
in foreign currencies are translated at the interests in the acquiree at fair value or at
functional currency spot rates of exchange at the the proportionate share of the acquiree’s
reporting date. Non-monetary items which are identifiable net assets. Acquisition-related costs
carried in terms of historical cost denominated are expensed as incurred.
in a foreign currency are reported using the
exchange rate at the date of the transaction. At the acquisition date, the identifiable assets
acquired and the liabilities assumed are
Exchange differences arising on the settlement recognised at their acquisition date fair values.
of monetary items or on restatement of the For this purpose, the liabilities assumed include
Company’s monetary items at rates different contingent liabilities representing present
from those at which they were initially recorded obligation and they are measured at their
during the year, or reported in previous financial acquisition fair values irrespective of the fact
statements, are recognised as income or as that outflow of resources embodying economic
expenses in the year in which they arise. benefits is not probable. However, deferred tax
assets or liabilities, and the assets or liabilities
Exchange differences pertaining to long-term related to employee benefit arrangements are
foreign currency monetary items obtained or recognised and measured in accordance with
given on or after 01 January 2017: Exchange Ind AS 12 ‘Income Taxes’ and Ind AS 19 ‘Employee
differences arising on conversion of long term Benefits’ respectively. When a liability assumed
foreign currency monetary items obtained or is recognised at the acquisition date but the
given is recorded in the Consolidated Statement related costs are not deducted in determining
of Profit and Loss. taxable profits until a later period, a deductible
temporary difference arises which results in a
Group companies deferred tax asset. A deferred tax asset also
On consolidation, the assets and liabilities of arises when the fair value of an identifiable asset
foreign operations are translated into INR at acquired is less than its tax base.
the rate of exchange prevailing at the reporting
date and their statements of profit and loss are 
When the Group acquires a business, it
translated at exchange rates prevailing at the assesses the financial assets and liabilities
dates of the transactions. For practical reasons, assumed for appropriate classification and
the group uses an average rate to translate designation in accordance with the contractual
income and expense items, if the average rate terms, economic circumstances and pertinent
approximates the exchange rates at the dates of conditions as at the acquisition date.
the transactions.
If the business combination is achieved in
The exchange differences arising on translation
stages, any previously held equity interest is
for consolidation are recognised in OCI. On
re-measured at its acquisition date fair value
disposal of a foreign operation, the component
and any resulting gain or loss is recognised in
of OCI relating to that particular foreign
profit or loss or OCI, as appropriate.
operation is recognised in profit or loss

Any contingent consideration to be transferred

k) Business combinations and goodwill
by the acquirer is recognised at fair value at

Business combinations are accounted for the acquisition date. Contingent consideration
using the acquisition method. The cost of an classified as an asset or liability that is a
acquisition is measured as the aggregate of financial instrument and within the scope of
the consideration transferred measured at Ind AS 109 ‘Financial Instruments’ (“Ind AS

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Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
109”), is measured at fair value with changes Any impairment loss for goodwill is recognised
in fair value recognised in the Consolidated in the Consolidated Statement of Profit and Loss.
Statement of Profit and Loss. If the contingent An impairment loss recognised for goodwill is
consideration is not within the scope of Ind not reversed in subsequent periods.
AS 109, it is measured in accordance with the

Where goodwill has been allocated to a
appropriate Ind AS. Contingent consideration
cash-generating unit and part of the operation
that is classified as equity is not re-measured at
within that unit is disposed of, the goodwill
subsequent reporting dates and subsequent its
associated with the disposed operation is
settlement is accounted for within equity.
included in the carrying amount of the operation
when determining the gain or loss on disposal.
Goodwill is initially measured at cost, being the
Goodwill disposed in these circumstances is
excess of the aggregate of the consideration
measured based on the relative values of the
transferred and the amount recognised for
disposed operation and the portion of the
non-controlling interests, and any previous
cash-generating unit retained.
interest held, over the net identifiable assets
acquired and liabilities assumed. If the fair If the initial accounting for a business combination
value of the net assets acquired is in excess is incomplete by the end of the reporting period
of the aggregate consideration transferred, in which the combination occurs, the Group
the Group re-assesses whether it has correctly reports provisional amounts for the items for
identified all of the assets acquired and all which the accounting is incomplete. Those
of the liabilities assumed and reviews the provisional amounts are adjusted through
procedures used to measure the amounts goodwill during the measurement period, or
to be recognised at the acquisition date. If additional assets or liabilities are recognised,
the reassessment still results in an excess of to reflect new information obtained about facts
the fair value of net assets acquired over the and circumstances that existed at the acquisition
aggregate consideration transferred, then the date that, if known, would have affected
gain is recognised in OCI and accumulated in the amounts recognised at that date. These
equity as capital reserve. adjustments are called as measurement period
adjustments. The measurement period does not
After initial recognition, goodwill is measured at exceed one year from the acquisition date.
cost less any accumulated impairment losses.
Business combinations involving entities that
For the purpose of impairment testing, goodwill
are controlled by the Group are accounted
acquired in a business combination is, from
for using the ‘pooling of interests’ method as
the acquisition date, allocated to each of the
follows:
Group’s cash-generating units that are expected
to benefit from the combination, irrespective of • The assets and liabilities of the combining
whether other assets or liabilities of the acquiree entities are reflected at their carrying
are assigned to those units. amounts;

• Except for adjustments made to harmonise

A cash generating unit to which goodwill has
accounting policies, no adjustments are
been allocated is tested for impairment annually,
made to reflect fair values, or recognise any
or more frequently when there is an indication
new assets or liabilities;
that the unit may be impaired. If the recoverable
amount of the cash generating unit is less than • The balance of the retained earnings
its carrying amount, the impairment loss is appearing in the financial statements
allocated first to reduce the carrying amount of of the transferor is aggregated with the
any goodwill allocated to the unit and then to corresponding balance appearing in the
the other assets of the unit pro rata based on financial statements of the transferee or is
the carrying amount of each asset in the unit. adjusted against general reserve; and

Annual Report 2024 257

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
• The identity of the reserves is preserved Current income tax
and the reserves of the transferor become Current income tax is measured at the amount
the reserves of the transferred. expected to be paid to the tax authorities in
The difference, if any, between the amounts accordance with the Income-tax Act, 1961 and
recorded as share capital issued plus any respective local jurisdictions of members of
additional consideration in the form of cash or the Group.
other assets and the amount of share capital of

Current income tax assets and liabilities
the transferor is transferred to capital reserve
are measured at the amount expected to
and is presented separately from other capital
be recovered from or paid to the taxation
reserves.
authorities. The tax rates and tax laws used to
l) Government grants compute the amount are those that are enacted
or substantively enacted, at the reporting date
Grants from the Government are recognised
in the countries where the Group operates and
when there is reasonable assurance that all
generates taxable income. Current income tax
underlying conditions will be complied with and
relating to items recognised outside profit or
that the grant will be received.
loss is recognised outside profit or loss (either
in OCI or in equity).
Grants related to income are recognised as
income on a systematic basis in the Statement Current tax items are recognised in correlation
of Profit and Loss over the periods necessary to to the underlying transaction either in OCI or
match them with the related costs, which they directly in equity. Management periodically
are intended to compensate and are presented evaluates positions taken in the tax returns
as ‘other operating revenues’. Further, where with respect to situations in which applicable
loans or similar assistance are provided by tax regulations are subject to interpretation
Government or related institutions, with an and establishes provisions where appropriate
interest rate below the current applicable including amount expected to be paid/
market rate, the effect of this favourable interest recovered for uncertain tax position.
is regarded as a government grant. The loan or
assistance is initially recognised and measured Deferred tax
at fair value and the government grant is Deferred tax is provided using the liability
measured as the difference between the initial method on temporary differences between
carrying value of the loan and the proceeds
the tax bases of assets and liabilities and their
to be received. That grant is recognised in
book bases. Deferred tax assets and liabilities
the Consolidated Statement of Profit and
are measured at the tax rates that are expected
Loss under ‘other operating revenue’. The
to apply in the year when the asset is realised
loan is subsequently measured in the year of
or the liability is settled, based on tax rates
disbursement as per the accounting policy
(and tax laws) that have been enacted or
applicable to financial liabilities.
substantively enacted at the reporting date.

Government grants related to assets are Deferred tax relating to items recognised
presented in the Consolidated balance sheet by outside profit or loss is recognised outside
deducting the grant from the carrying value of profit or loss. Deferred tax items are recognised
the asset and non-monetary grant is recognised in correlation to the underlying transaction
at a nominal value. either in OCI or directly in equity. Deferred tax
assets and deferred tax liabilities are offset if a
m) Taxes legally enforceable right exists to set off current
Tax expense is the aggregate amount included tax assets against current tax liabilities and the
in the determination of profit or loss for the deferred taxes relate to the same taxable entity
period in respect of current and deferred tax. and the same taxation authority.

258 Varun Beverages Limited

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Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
Deferred tax liabilities are recognised for all The carrying amount of deferred tax assets is
taxable temporary differences except: reviewed at each reporting date and reduced
to the extent that it is no longer probable that
• When the deferred tax liability arises sufficient taxable profit will be available to
from the initial recognition of goodwill or allow all or part of the deferred tax asset to
an asset or liability in a transaction that be utilised. Unrecognised deferred tax assets
is not a business combination and, at the are re-assessed at each reporting date and are
recognised to the extent that it has become
time of the transaction, affects neither
probable that future taxable profits will allow
the accounting profit nor taxable profit
the deferred tax asset to be recovered.
or loss;

• In respect of taxable temporary Minimum Alternate Tax (“MAT”) credit is

differences associated with investments recognised as an asset only when and to the
extent there is convincing evidence that the
in subsidiaries and associate, when the
relevant members of the Group will pay normal
timing of the reversal of the temporary
income tax during the specified period. Such
differences can be controlled and it is
asset is reviewed at each reporting period end
probable that the temporary differences
and the adjusted based on circumstances then
will not reverse in the foreseeable future. prevailing.
Deferred tax assets are recognised for all
Deferred tax assets are recognised on the
deductible temporary differences, the carry
unrealized profit for all the inter-company sale/
forward of unused tax credits and any unused
purchase eliminations of property, plant and
tax losses. Deferred tax assets are recognised to equipment and inventories.
the extent that it is probable that taxable profit
will be available against which the deductible Deferred tax on business combination
temporary differences, and the carry forward of When a liability assumed is recognized at the
unused tax credits and unused tax losses can be acquisition date but the related costs are not
utilised, except: deducted in determining taxable profits until a
later period, a deductible temporary difference
• When the deferred tax asset relating arises which results in a deferred tax asset. A
to the deductible temporary difference deferred tax asset also arises when the fair value
arises from the initial recognition of an of an identifiable asset acquired is less than its
asset or liability in a transaction that is tax base. In both cases, the resulting deferred
not a business combination and, at the tax asset affects goodwill
time of the transaction, affects neither the
accounting profit nor taxable profit or loss; n) Segment reporting
Operating segments are reported in a manner
• In respect of deductible temporary consistent with the internal reporting provided
differences associated with investments to the chief operating decision maker, who is
in subsidiaries and associate, deferred tax responsible for allocating resources and assessing
assets are recognised only to the extent performance of the operating segments.
that it is probable that the temporary
differences will reverse in the foreseeable The business activities of the Group
future and taxable profit will be available predominantly fall within a single operating
against which the temporary differences segment, i.e., manufacturing and sale of
can be utilised. beverages. The Group operates in two principal
geographical areas, namely, India and other
Deferred income taxes are not provided on the countries or ‘outside India’. The Group prepares
undistributed earnings of subsidiaries where it its segment information in conformity with
is expected that the earnings of the subsidiary the accounting policies adopted for preparing
will not be distributed in the foreseeable future. the CFS.

Annual Report 2024 259

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
o) Discontinued operations traded company’s or other available fair value
A discontinued operation is a component of the indicators.
Group that either has been disposed of, or is
classified as held for sale, and: The Group bases its impairment calculation
on detailed budgets and forecast calculations,
• Represents a separate major line of business which are prepared separately for each of the
or geographical area of operations; Group’s CGUs to which the individual assets
are allocated. These budgets and forecast
• Is part of a single co-ordinated plan to
calculations generally cover a period of five
dispose of a separate major line of business
years. For longer periods, a long-term growth
or geographical area of operations; or
rate is calculated and applied to project future
• Is a subsidiary acquired exclusively with a cash flows after the fifth year. To estimate cash
view to resale. flow projections beyond periods covered by
the most recent budgets/forecasts, the Group
Discontinued operations are excluded from extrapolates cash flow projections in the budget
the results of continuing operations and are
using a steady or declining growth rate for
presented as a single amount as profit or loss
subsequent years, unless an increasing rate
after tax from discontinued operations in the
can be justified. In any case, this growth rate
Consolidated Statement of Profit and Loss
does not exceed the long-term average growth
rate for the products, industries, or country or
p) Impairment of non-financial assets
countries in which the entity operates, or for the
The Group assesses, at each reporting date,
market in which the asset is used.
whether there is an indication that an asset may
be impaired. If any indication exists, or when
Impairment losses of continuing operations,
annual impairment testing for an asset is required,
including impairment on inventories, are
the Group estimates the asset’s recoverable
recognised in the Consolidated Statement of
amount. An asset’s recoverable amount is
Profit and Loss.
the higher of an asset’s or cash-generating
unit’s (“CGU”) fair value less costs of disposal
An assessment is made at each reporting date
and its value in use. Recoverable amount is
to determine whether there is an indication that
determined for an individual asset, unless the
asset does not generate cash inflows that are previously recognised impairment losses no
largely independent of those from other assets longer exist or have decreased. If such indication
or groups of assets. When the carrying amount exists, the Group estimates the asset’s or CGU’s
of an asset or CGU exceeds its recoverable recoverable amount. A previously recognised
amount, the asset is considered impaired and is impairment loss is reversed only if there has
written down to its recoverable amount. been a change in the assumptions used to
determine the asset’s recoverable amount since
In assessing value in use, the estimated future the last impairment loss was recognised.
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current The reversal is limited so that the carrying
market assessments of the time value of money amount of the asset does not exceed its
and the risks specific to the asset. In determining recoverable amount, nor exceed the carrying
fair value less costs of disposal, recent market amount that would have been determined,
transactions are taken into account. net of depreciation, had no impairment loss
been recognised for the asset in prior years.
If no such transactions can be identified, an Such reversal is recognised in the Consolidated
appropriate valuation model is used. These Statement of Profit and Loss unless the asset is
calculations are corroborated by valuation
carried at a revalued amount, in which case, the
multiples, quoted share prices for publicly
reversal is treated as a revaluation increase.

260 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
q) Financial instruments c) 
Debt instruments at Fair Value Through
A financial instrument is any contract that gives Profit or Loss
rise to a financial asset of one entity and a financial Fair Value Through Profit or Loss (“FVTPL”)
liability or equity instrument of another entity. is a residual category for debt instruments.
Any debt instrument, which does not
Financial assets meet the criteria for categorization as at
Initial recognition and measurement amortized cost or as FVTOCI, is classified
as at FVTPL.
All financial assets are recognised initially at
fair value, plus in the case of financial assets
In addition, the Group may elect to designate
not recorded at fair value through profit or a debt instrument which otherwise meets
loss (“FVTPL”), transaction costs that are amortized cost or FVTOCI criteria, as at
attributable to the acquisition of the financial FVTPL. However, such election is allowed
asset. However, trade receivables that do not only if doing so reduces or eliminates a
contain a significant financing component are measurement or recognition inconsistency
measured at transaction price. (referred to as ‘accounting mismatch’).
For purposes of subsequent measurement,

Debt instruments included within the
financial assets are classified as follows:
FVTPL category are measured at fair
a) Debt instruments at amortised cost value with all changes recognised in the
A ‘debt instrument’ is measured at the Consolidated Statement of Profit and Loss.
amortised cost where the asset is held The Group has not designated any debt
within a business model whose objective instrument in this category.
is to hold assets for collecting contractual
cash flows; and contractual terms of the d) Equity instruments
asset give rise to cash flows on specified All equity investments in scope of Ind
dates that are solely payments of principal AS 109 are measured at fair value. Equity
and interest. instruments which are held for trading and
contingent consideration recognised by an
After initial measurement, such financial
acquirer in a business combination to which
assets are subsequently measured at
Ind AS 103 ‘Business Combinations’ applies
amortised cost using the EIR method.
are Ind AS classified as at FVTPL. Equity
Amortised cost is calculated by taking
instruments included within the FVTPL
into account any discount or premium on
category are measured at fair value with
acquisition and fees or costs that are an
all changes recognised in the Consolidated
integral part of the EIR. The interest income
Profit and Loss.
from these financial assets is included in
other income in the profit or loss. The losses

For all other equity instruments, the
arising from impairment are recognised in
Group may make an irrevocable election
the profit or loss. This category generally
to present in other comprehensive income
applies to trade and other receivables.
subsequent changes in the fair values.
b) 
Debt instruments at Fair Value Through The Group makes such election on an
Other Comprehensive Income instrument-by-instrument basis. The
Assets that are held for collection of classification is made on initial recognition
contractual cashflows and for selling and is irrevocable.
the financial assets, where the cash flow
represent solely payments of principal and If the Group decides to classify an equity
interest, are measured at fair value through instrument as at FVTOCI, then all fair value
other comprehensive income (“FVOCI”). changes on the instrument, excluding
The Group has not designated any debt dividends, are recognised in the OCI. There
instrument in this category. is no recycling of the amounts from OCI to

Annual Report 2024 261

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
profit or loss, even on sale of investment. a) Financial liabilities at FVTPL
However, the Group may transfer the Financial liabilities at FVTPL include
cumulative gain or loss within equity. financial liabilities held for trading and
financial liabilities designated upon initial
De-recognition recognition as at fair value through profit
A financial asset is derecognised when the or loss. Financial liabilities are classified as
contractual rights to receive cash flows from held for trading if they are incurred for the
the asset have expired or the Group has purpose of repurchasing in the near term.
transferred its rights to receive the contractual This category includes derivative financial
cash flows from the asset in a transaction in instruments entered into by the Group that
which substantially all the risks and rewards of are not designated as hedging instruments in
ownership of the asset are transferred. hedge relationships as defined by Ind AS 109.

Impairment of financial assets Financial liabilities designated upon initial

The Group measures the Expected Credit recognition at fair value through profit or
Loss (“ECL”) associated with its assets based loss are designated as such at the initial date
on historical trends, industry practices and of recognition, and only if the criteria in Ind
the general business environment in which it AS 109 are satisfied. For liabilities designated
operates. The impairment methodology applied as FVTPL, fair value gains/ losses are
depends on whether there has been a significant recognised in the Consolidated Statement of
increase in credit risk. ECL impairment loss Profit or Loss, except for those attributable
allowance (or reversal) recognised during the to changes in own credit risk, which are
period is recognised as income/ expense in recognised in OCI. These gains/ loss are not
the Consolidated Statement of Profit and Loss subsequently transferred to the profit or loss.
under the head ‘other expenses’.
b) Financial liabilities at amortised cost
Financial liabilities
After initial recognition, financial liabilities
Initial recognition and measurement designated at amortised costs are
Financial liabilities are classified, at initial subsequently measured at amortised cost
recognition, as financial liabilities at fair value using the EIR method. Gains and losses
through profit or loss, loans and borrowings, are recognised in profit or loss when the
payables, or as derivatives designated as liabilities are derecognised as well as
hedging instruments in an effective hedge, as through the EIR amortisation process.
appropriate. Amortised cost is calculated by taking
into account any discount or premium on
All financial liabilities are recognised initially acquisition and fees or costs that are an
integral part of the EIR. The amortisation
at fair value and, in the case of loans and
is included as finance costs in the
borrowings and payables, net of directly
Consolidated Statement of Profit and Loss.
attributable transaction costs.

De-recognition
The Group’s financial liabilities include trade and
other payables, loans and borrowings including A financial liability is derecognised when the
bank overdrafts and derivative financial obligation under the liability is discharged or
instruments. cancelled or expires. When an existing financial
liability is replaced by another from the same
Subsequent measurement lender on substantially different terms, or the
terms of an existing liability are substantially
The measurement of financial liabilities depends
modified, such an exchange or modification is
on their classification, as described below: treated as the de-recognition of the original

262 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
liability and the recognition of a new liability. The expense relating to a provision is presented in
difference in the respective carrying amounts is the Consolidated Statement of Profit and Loss
recognised in the Consolidated Statement of net of any reimbursement.
Profit and Loss.
If the effect of the time value of money is material,
Offsetting of financial instruments provisions are discounted using a current
Financial assets and financial liabilities are offset pre-tax rate that reflects, when appropriate, the
and the net amount is reported in the balance risks specific to the liability. When discounting
sheet if there is a currently enforceable legal right is used, the increase in the provision due to the
to offset the recognised amounts and there is an passage of time is recognised as a finance cost.
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously. u) Contingent liabilities
A contingent liability is a possible obligation that
r) Cash and cash equivalents arises from past events whose existence will be
Cash and cash equivalent in the balance sheet confirmed by the occurrence or non–occurrence
comprise cash at banks and on hand and of one or more uncertain future events beyond
short-term deposits with an original maturity of the control of the Group or a present obligation
three months or less, which are subject to an that is not recognised because it is not probable
insignificant risk of changes in value. that an outflow of resources will be required to
settle the obligation. A contingent liability also
For the purpose of the consolidated statement arises in extremely rare cases where there is a
of cash flows, cash and cash equivalents consist liability that cannot be recognised because it
of cash and short-term deposits, as defined cannot be measured reliably. The Group does
above, net of outstanding bank overdrafts not recognize a contingent liability but discloses
as they are considered an integral part of the its existence in the financial statements.
Group’s cash management. Contingent assets are only disclosed when it is
probable that the economic benefits will flow to
s) Dividend distribution to equity holders of the entity.
the parent
v) Earnings per share
The Group recognises a liability to make cash or
non-cash distributions to equity holders of the Basic earnings/ (loss) per share are calculated
parent when the distribution is authorised and by dividing the net profit or loss for the year
the distribution is no longer at the discretion of attributable to equity shareholders by the
the Group. As per the corporate laws in India, weighted average number of equity shares
a distribution is authorised when it is approved outstanding during the year. The weighted
by the shareholders. A corresponding amount is average number of equity shares outstanding
recognised directly in equity. during the year is adjusted for events, other
than conversion of potential equity shares, that
t) Provisions have changed the number of equity shares
Provisions are recognised when the Group has outstanding without a corresponding change in
a present obligation (legal or constructive) as a resources.
result of a past event, it is probable that an outflow
of resources embodying economic benefits
In case of a bonus issue and sub-divison/split,
will be required to settle the obligation and a
the number of ordinary shares outstanding is
reliable estimate can be made of the amount of
increased by number of shares issued as bonus
the obligation. When the Group expects some or
all of a provision to be reimbursed, for example, shares and sub-divison/split respectively in
under an insurance contract, the reimbursement current year and comparative period presented
is recognised as a separate asset, but only when as if the event had occurred at the beginning of
the reimbursement is virtually certain. The the earliest year presented.

Annual Report 2024 263

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
For the purpose of calculating diluted earnings/ contingencies will be resolved only
(loss) per share, the net profit or loss for the when one or more uncertain future
period attributable to equity shareholders events occur or fail to occur. The
and the weighted average number of shares assessment of the existence, and
outstanding during the period are adjusted for potential quantum, of contingencies
the effects of all dilutive potential equity shares.. inherently involves the exercise of
significant judgments and the use of
3.1. Significant accounting judgements, estimates estimates regarding the outcome of
and assumptions future events.
The preparation of the Group’s financial
statements requires management to make b) Recognition of deferred tax assets
judgements, estimates and assumptions that The extent to which deferred tax
affect the reported amounts of revenues, assets can be recognised is based on
expenses, assets and liabilities, and the an assessment of the probability that
accompanying disclosures, and the disclosure future taxable income will be available
of contingent liabilities. Estimates and against which the deductible temporary
assumptions are continuously evaluated and differences and tax loss carry-forward
are based on management’s experience and can be utilised. In addition, significant
other factors, including expectations of future judgement is required in assessing
events that are believed to be reasonable the impact of any legal or economic
under the circumstances. Uncertainty about limits or uncertainties in various tax
these assumptions and estimates could result jurisdictions.
in outcomes that require a material adjustment
to the carrying amount of assets or liabilities ii) Estimates and assumptions
affected in future periods. 
The key assumptions concerning the
future and other key sources of estimation
In particular, the Group has identified the
uncertainty at the reporting date that have
following areas where significant judgements,
a significant risk of causing a material
estimates and assumptions are required. Further
adjustment to the carrying amounts
information on each of these areas and how
of assets and liabilities within the next
they impact the various accounting policies are
financial year, are described below.
described below and also in the relevant notes to
The Group bases its assumptions and
the consolidated financial statements. Changes
estimates on parameters available when
in estimates are accounted for prospectively.
the consolidated financial statements
were prepared. Existing circumstances and
i) Judgements
assumptions about future developments,
In the process of applying the Group’s
however, may change due to market
accounting policies, management has
change or circumstances arising beyond
made the following judgements, which
the control of the Group. Such changes
have the most significant effect on the
are reflected in the assumptions when
amounts recognised in the consolidated
they occur.
financial statements:

a) Contingencies a) 
Useful lives of tangible/intangible
Contingent liabilities may arise from assets
the ordinary course of business in The Group reviews its estimate of
relation to claims against the Group, the useful lives of tangible/intangible
including legal, contractor, land access assets at each reporting date, based
and other claims. By their nature, on the expected utility of the assets.

264 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
b) Defined benefit obligation e) 
Impairment of non-financial assets
The cost of the defined benefit and goodwill
plan and other post-employment In assessing impairment, Group
benefits and the present value of estimates the recoverable amount of
such obligation are determined using each asset or cash-generating units
actuarial valuations. An actuarial based on expected future cash flows
valuation involves making various and uses an interest rate to discount
assumptions that may differ from them. Estimation uncertainty relates
actual developments in the future. to assumptions about future operating
These include the determination results and the determination of a
of the discount rate, future salary suitable discount rate.
increases, mortality rates and future
pension increases. In view of the f) 
Fair value measurement of financial
complexities involved in the valuation instruments
and its long-term nature, a defined When the fair values of financial assets
benefit obligation is highly sensitive and financial liabilities recorded in the
to changes in these assumptions. All Balance Sheet cannot be measured
assumptions are reviewed at each based on quoted prices in active
reporting date. markets, their fair value is measured
using valuation techniques including
c) Inventories the DCF model. The inputs to these
The Group estimates the net realisable models are taken from observable
values of inventories, taking into markets where possible, but where this
account the most reliable evidence is not feasible, a degree of judgment
available at each reporting date. The is required in establishing fair values.
future realisation of these inventories Judgements include considerations of
may be affected by future technology inputs such as liquidity risk, credit risk
or other market-driven changes that and volatility. Changes in assumptions
may reduce future selling prices. about these factors could affect
the reported fair value of financial
d) Business combinations instruments.
The Group uses valuation techniques
when determining the fair values of
certain assets and liabilities acquired
in a business combination.

Annual Report 2024 265

 Summary of material accounting policies and other explanatory information on the Consolidated

266
Financial Statements for the year ended 31 December 2024

4A. Property, plant and equipment

(` in million)
Land Buildings Plant and Furniture and Vehicles Office Computer Containers Post-mix Total
freehold equipment fixtures equipment equipment vending
machines and
refrigerators
(Visi Cooler)

Varun Beverages Limited

Gross carrying amount
Balance as at 01 January 2024 8,432.43 19,209.97 54,660.22 406.45 4,050.63 508.36 409.55 5,919.02 12,423.89 106,020.52
Addition pursuant to business combination - 78.76 3,762.43 33.23 171.62 - 84.35 - 711.68 4,842.07
(refer note 50(i))
Additions for the year 16.75 11,053.19 27,757.37 243.87 2,563.50 153.27 157.12 1,199.36 1,772.55 44,916.98
Disposals for the year - (367.12) (1,232.14) (1.62) (151.92) (3.33) (5.37) (361.82) (378.11) (2,501.43)
Foreign currency translation difference 40.85 86.47 320.85 5.30 120.51 2.47 4.70 7.81 96.16 685.12
Balance as at 31 December 2024 8,490.03 30,061.27 85,268.73 687.23 6,754.34 660.77 650.35 6,764.37 14,626.17 153,963.26
Accumulated depreciation
Balance as at 01 January 2024 - 4,108.46 18,609.68 212.31 1,678.98 303.51 259.29 2,563.91 10,253.06 37,989.20
Addition pursuant to business combination - 50.33 1,734.87 27.82 168.42 - 56.87 - 427.56 2,465.87
(refer note 50(i))
Depreciation charge for the year - 936.25 5,059.82 60.52 530.29 81.51 80.62 966.40 671.54 8,386.95
Reversal on disposals for the year - (92.48) (700.14) (1.47) (136.54) (2.60) (4.70) (294.06) (121.70) (1,353.69)
Foreign currency translation difference - 21.72 127.46 2.47 26.57 1.35 2.76 7.62 59.47 249.42
Balance as at 31 December 2024 - 5,024.28 24,831.69 301.65 2,267.72 383.77 394.84 3,243.87 11,289.93 47,737.75
Carrying amount as at 31 December 2024 8,490.03 25,036.99 60,437.04 385.58 4,486.62 277.00 255.51 3,520.50 3,336.24 106,225.51

(` in million)
Land Buildings Plant and Furniture and Vehicles Office Computer Containers Post-mix Total
freehold equipment fixtures equipment equipment vending
machines and
refrigerators
(Visi Cooler)
Gross carrying amount
Balance as at 01 January 2023 7,797.60 15,541.43 43,694.33 290.23 2,064.15 401.89 326.12 5,427.93 11,981.78 87,525.46
Additions for the year 587.25 3,986.62 12,341.75 117.60 2,122.24 112.60 97.53 1,557.21 724.81 21,647.61
Disposals/adjustments for the year (12.49) (273.73) (1,364.31) (0.19) (125.57) (5.74) (11.80) (918.86) (318.33) (3,031.02)
Foreign currency translation difference 60.07 (44.35) (11.55) (1.19) (10.19) (0.39) (2.30) (147.26) 35.63 (121.53)
Balance as at 31 December 2023 8,432.43 19,209.97 54,660.22 406.45 4,050.63 508.36 409.55 5,919.02 12,423.89 106,020.52
Accumulated depreciation and impairment
Balance as at 01 January 2023 - 3,531.23 15,596.24 183.59 1,610.47 249.22 222.80 2,416.92 9,299.21 33,109.68
Depreciation charge for the year - 626.97 3,471.30 29.42 198.02 58.80 48.83 940.08 1,035.62 6,409.04
Reversal on disposals/adjustments for the year - (57.53) (507.37) (0.18) (120.68) (4.68) (10.91) (722.46) (109.10) (1,532.91)
Foreign currency translation difference - 7.79 49.51 (0.52) (8.83) 0.17 (1.43) (70.63) 27.33 3.39
Balance as at 31 December 2023 - 4,108.46 18,609.68 212.31 1,678.98 303.51 259.29 2,563.91 10,253.06 37,989.20
Carrying amount as at 31 December 2023 8,432.43 15,101.51 36,050.54 194.14 2,371.65 204.85 150.26 3,355.11 2,170.83 68,031.32
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
Footnotes to Note 4A:
i. Refer note 56 for information on property, plant and equipment pledged as security by the Group.
ii. Pre-operative expenses incurred and capitalised during the year are as under:
(` in million)
Net Book Value 31 December 2024 31 December 2023
Balance at the beginning of the year 1,182.42 359.72
Add: Incurred during the year
Foreign currency translation difference (16.93) (76.87)
Finance costs 515.84 625.45
Employee benefits expense and other expenses 1,958.82 685.56
Less: Capitalised during the year (3,340.17) (411.44)
Amount carried over included in CWIP 299.98 1,182.42
iii. The amount of contractual commitments for the acquisitions of property, plant and equipment are disclosed in Note 44.

iv. All title deeds of immovable properties are held in the name of the Group.

4B. Capital work-in-progress (CWIP)

The changes in the carrying value of capital work-in-progress for the year ended 31 December 2024 and
31 December 2023 are as follows :
(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2024 19,222.22
Addition pursuant to business combination (refer note 50(i)) 466.37
Additions for the year* 21,207.13
Transfer to property, plant and equipment (29,265.53)
Foreign currency translation difference (6.76)
Balance as at 31 December 2024 11,623.43

(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2023 6,066.32
Additions for the year* 20,855.34
Transfer to property, plant and equipment (7,529.15)
Foreign currency translation difference (170.29)
Balance as at 31 December 2023 19,222.22

* includes finance cost amounting to ` 515.84 million (31 December 2023: ` 625.45 million) and Employee benefits expenses &
other expenses amounting to ` 1,958.82 million (31 December 2023: ` 685.56 million) respectively.

4B (i) CWIP ageing schedule

(` in million)
Particular Amount in CWIP for a period of
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress
As at 31 December 2024 11,410.64 191.88 17.45 3.46 11,623.43
As at 31 Decemebr 2023 17,735.60 1,482.00 1.15 3.47 19,222.22
There are no projects as on each reporting period where activity has been suspended . Also, there are no project as on reporting
period which has exceeded cost as compared to its original plan or where completion is overdue.

Annual Report 2024 267

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
4C. Right of use assets (ROU)
(` in million)
Land Leased Leased Vehicles Visi Total
leasehold buildings plant and Coolers
equipment
Gross carrying amount
Balance as at 01 January 2024 9,885.86 373.96 328.25 886.81 156.83 11,631.71
Addition pursuant to business combination - 2,527.67 223.66 181.92 - 2,933.25
(refer note 50(i))
Additions for the year 651.01 1,048.38 149.71 397.76 250.89 2,497.75
Foreign currency translation difference (4.34) 65.09 8.51 10.50 0.94 80.70
Balance as at 31 December 2024 10,532.53 4,015.10 710.13 1,476.99 408.66 17,143.41
Accumulated Amortisation
Balance as at 01 January 2024 606.71 263.31 97.60 293.50 23.52 1,284.64
Addition pursuant to business combination - 1,115.35 139.36 111.30 - 1,366.01
(refer note 50(i))
Amortisation charge for the year 138.31 288.54 94.56 219.51 77.61 818.53
Foreign currency translation difference 1.62 31.78 4.53 4.99 0.09 43.01
Balance as at 31 December 2024 746.64 1,698.98 336.05 629.30 101.22 3,512.19
Carrying amount as at 31 December 2024 9,785.89 2,316.12 374.08 847.69 307.44 13,631.22

Gross carrying amount

Balance as at 01 January 2023 8,996.88 326.20 314.26 456.84 - 10,094.18
Additions for the year 992.32 78.41 - 399.36 153.24 1,623.33
Rebate (Refer footnote i below) (16.61) - - - - (16.61)
Disposals for the year - (30.65) - - - (30.65)
Foreign currency translation difference (86.73) - 13.99 30.61 3.59 (38.54)
Balance as at 31 December 2023 9,885.86 373.96 328.25 886.81 156.83 11,631.71
Accumulated Amortisation
Balance as at 01 January 2023 483.81 250.61 49.00 155.75 - 939.17
Amortisation charge for the year 122.52 40.92 45.57 127.52 22.98 359.51
Reversal on disposals for the year - (28.22) - - - (28.22)
Foreign currency translation difference 0.38 - 3.03 10.23 0.54 14.18
Balance as at 31 December 2023 606.71 263.31 97.60 293.50 23.52 1,284.64
Carrying amount as at 31 December 2023 9,279.15 110.65 230.65 593.31 133.31 10,347.07

Footnotes to Note 4C:

(i) During the year ended on 31 December 2023, the Holding Company has received rebate on leasehold land acquired in
Gorakhpur amounting to ` 16.61 million on account of full premium payment as per prescribed timeline. The rebate received
is adjusted against the carrying value of the respective asset.
(ii) All lease deeds of immovable properties are held in the name of the Holding Company except as disclosed below:
(` in million)
Description of property Gross Net Whether title deed holder Date since the Reason for not being held in
carrying carrying is a Promoter, director property is held name of Holding Company
value value or relative of promoter/
director or employee
Land Situated at 371.34 367.52 No 21 December 2023 The Holding Company has
Buxar, Bihar received the possession letter
dated 21 December 2023 of
land situated at Buxar, Bihar and
is in the process of getting lease
deed registered in its name.
Land situated at 1.50 1.41 No 01 October 2018 The Holding Company has
Kolkata,West Bengal executed the lease agreement
for Kolkata, West Bengal land,
which is yet to be registered.

268 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
5A. Goodwill (Refer note i)
(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2024 242.30
Addition pursuant to business combination (refer note 50(i)) 2,689.38
Foreign currency translation difference 77.69
Balance as at 31 December 2024 3,009.37
Impairment
Balance as at 01 January 2024 -
Impairment charge for the year -
Balance as at 31 December 2024 -
Carrying amount as at 31 December 2024 3,009.37

(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2023 242.30
Acquired during the year -
Balance as at 31 December 2023 242.30
Impairment
Balance as at 01 January 2023 -
Impairment charge for the year -
Balance as at 31 December 2023 -
Carrying amount as at 31 December 2023 242.30

5B. Other intangible assets

(` in million)
Market Distribution Franchise Brands Computer Total
infrastructure network rights/ software
trademarks
(Refer note i)
Gross carrying amount
Balance as at 01 January 2024 74.68 157.64 6,042.96 - 281.11 6,556.39
Addition pursuant to business 1,053.58 1,952.92 3,481.74 488.73 99.66 7,076.63
combination (refer note 50(i))
Additions for the year - - - - 40.79 40.79
Disposals for the year - - - - (0.43) (0.43)
Foreign currency translation difference 34.56 63.06 112.42 15.78 3.20 229.02
Balance as at 31 December 2024 1,162.82 2,173.62 9,637.12 504.51 424.33 13,902.40
Amortisation
Balance as at 01 January 2024 54.97 99.58 656.97 273.87 1,085.39
Addition pursuant to business 385.17 860.05 33.00 - 78.73 1,356.95
combination (refer note 50(i))
Amortisation charge for the year 60.54 107.47 - 78.50 21.87 268.38
Reversal on disposals for the year - - - - 0.08 0.08
Foreign currency translation difference 11.94 26.31 1.07 (1.31) 2.33 40.34
Balance as at 31 December 2024 512.62 1,093.41 691.04 77.19 376.88 2,751.14
Carrying amount as at 650.20 1,080.21 8,946.08 427.32 47.45 11,151.26
31 December24

Annual Report 2024 269

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
Market Distribution Franchise Brands Computer Total
infrastructure network rights/ software
trademarks
(Refer note i)
Gross carrying amount
Balance as at 01 January 2023 71.36 157.64 6,043.55 - 279.73 6,552.28
Additions for the year - - - - 1.34 1.34
Foreign currency translation difference 3.32 - (0.59) - 0.04 2.77
Balance as at 31 December 2023 74.68 157.64 6,042.96 - 281.11 6,556.39
Amortisation
Balance as at 01 January 2023 41.13 79.88 657.19 - 264.98 1,043.18
Amortisation charge for the year 11.95 19.70 - - 8.86 40.51
Foreign currency translation 1.89 - (0.22) - 0.03 1.70
difference
Balance as at 31 December 2023 54.97 99.58 656.97 - 273.87 1,085.39
Carrying amount as at 19.71 58.06 5,385.99 - 7.24 5,471.00
31 December 2023

Footnotes to Note 5A and 5B:

i. Goodwill and franchise rights/trade marks with indefinite useful lives are tested for impairment annually, or more frequently
if the events and circumstances indicate that the carrying value may be impaired. The useful life of an intangible asset with
an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable.
The Group has considered the relevant provisions of Ind AS 38 on ‘Intangibles Assets’ which provide factors to determine the
life of intangible assets and accordingly the carrying value of franchisee rights have been considered to have an indefinite
life. These franchisee rights meet the prescribed criteria of renewal at nominal cost, renewal with no specific conditions
attached, are sustainable and the same is supported by evidences of being renewed. Management is of the opinion that,
based on an analysis of all the relevant factors, there is no foreseeable limit to the period over which the franchise rights are
expected to generate net cash inflows for the Group.
The assumptions used in this impairment assessment are most sensitive to following:
a) Weighted average cost of capital ‘’WACC’’ of 12.07% to 16.45% (Previous year: 13.33%-18.90%) has been used for the
explicit period and for the terminal year.
b) For arriving at the terminal value, approximate growth rate of 2%-6% (Previous year: 2%-5%) is considered.
c) Number of years for which cash flows were considered are 5 years.
d) The approximate rate of growth in sales is estimated at 8%-13% (Previous year: 8%-10%) in the discrete period.
No impairment loss was identified on the above assessment.
ii. The amount of contractual commitments for the acquisitions of intangible assets are disclosed in Note 44.
iii. Refer Note 56 for information on other intangible assets pledged as security by the Group.

5C. Intangible assets under development:

The changes in the carrying value of Intangible assets under development for the year ended 31 December 2024
and 31 December 2023 are as follows :
(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2024 -
Additions for the year 43.69
Transfer to Intangible assets -
Balance as at 31 December 2024 43.69

270 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
Amount

Gross carrying amount

Balance as at 01 January 2023 -
Additions for the year -
Transfer to Intangible assets -
Balance as at 31 December 2023 -

Footnotes to Note 5C:

(i) Intangible assets under development ageing schedule
(` in million)
Amount in Intangible assets under development for a period of
Less than 1-2 years 2-3 years More than Total
1 year 3 years
Projects in progress
As at 31 December 2024 43.69 - - - 43.69
As at 31 December 2023 - - - - -

There are no projects as on each reporting period where activity has been suspended. Also, there are no projects as
on each reporting period which has exceeded cost as compared to its original plan or where completion is overdue.

6. Investment in associate and joint venture

(` in million)
As at As at
31 December 2024 31 December 2023
Investment in joint ventures accounted as per equity method (unquoted)
50,000,000 (31 December 2023: 13,007,000) fully paid equity shares 500.00 130.07
of ` 10 each in IDVB Recycling Operations Private Limited~
Add: Share in loss of joint venture (refer note 59) (15.57) (3.07)
484.43 127.00
Investment in associates accounted as per equity method (unquoted)
21,030 (31 December 2023: 21,030) fully paid equity shares of ` 10 32.85 32.85
each in Clean Max Tav Private Limited@
Add: Share in loss of associate (refer note 59) (1.55) (0.26)
31.30 32.59
1,247,943 (31 December 2023: 1,247,943) fully paid equity shares of 21.24 21.24
` 10 each in Huoban Energy 7 Private Limited#
Add: Share in loss of associate (refer note 59) (2.50) (1.51)
18.74 19.73
Aggregate amount of unquoted investments* 534.47 179.32


~The Holding Company has subscribed the equity investment of IDVB Recycling Operations Private Limited amounting to ` 369.93
million (31 December 2023: ` 120.00 million). During the previous year, loan given amounting to ` 10.00 million were converted
into equity investment on 25 September 2023.

@The Holding Company had made investment in Clean Max Tav Private Limited amounting to ` 3.28 million and ` 29.54 million
on 27 January 2023 and 13 March 2023 respectively.

# The Holding Company had made equity investment in Huoban Energy 7 Private Limited amounting to ` 21.24 million on
09 May 2023.
The above investment is for business purposes.

Annual Report 2024 271

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
7. Investments

(` in million)
As at As at
31 December 2024 31 December 2023
Fair value through Profit and Loss ("FVTPL")
Investment in fully paid equity shares (unquoted)
200 (31 December 2023: 200) shares of ` 50 each in The Margao 0.01 0.01
Urban Co-operative Bank Limited
250 (31 December 2023: 250) shares of ` 10 each in The Goa Urban 0.00 0.00
Co-operative Bank Limited**
3,150,000 (31 December 2023: 3,150,000) fully paid equity shares of 31.50 31.50
` 10 each in Lone Cypress Ventures Private Limited~
9,58,415 (31 December 2023: Nil) fully paid equity shares of ` 10 each 29.04 -
in Huoban Energy 11 Private Limited^
60.55 31.51
**Rounded off to Nil.

Aggregate amount of unquoted investments 60.55 31.51

~ The Holding Company has made equity investment in Lone Cypress Ventures Private Limited amounting to ` 31.50 million on
13 March 2023.
^ The Holding Company has made equity investment in Huoban Energy 11 Private Limited amounting to ` 29.04 million on
28 August 2024.

8. Loan
(` in million)
As at As at
31 December 2024 31 December 2023
Loans carried at amortised cost
Loan to others 218.87 -
218.87 -

9. Other non-current financial asset

(` in million)
As at As at
31 December 2024 31 December 2023
Financial assets at amortised cost
Security deposits 914.16 577.63
Balance in deposit accounts with remaining maturity of more than 9.61 10.49
12 months#
Interest accured on loans 15.85 -
Others 47.64 34.55
987.26 622.67
#Includes deposits pledged as security with banks for utility services.

272 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
10. Deferred tax assets and liabilities
Movement in deferred tax assets/liabilities during the year ended 31 December 2024 and 31 December 2023:
(` in million)
Deferred tax liabilities/(assets) As at Acquired Recognised Recognised As at
01 January in business in other in the 31 December
2024 combination comprehensive Consolidated 2024
(refer note income** Statement of
50(i)) Profit and Loss
Accelerated depreciation for tax purposes 4,127.78 1,144.81 - 798.77 6,071.36
Benefit accrued on government grants 74.45 - - (6.96) 67.49
Carry forward of unused tax losses - (218.05) - 83.56 (134.49)
Allowance for doubtful debts (86.24) (72.43) - (10.68) (169.35)
Accrued bonus (44.51) - - (10.31) (54.82)
Provision for retirement benefits (510.89) - 67.99 (38.89) (481.79)
Fair valuation of financial instruments (25.87) (450.54) - (249.19) (725.60)
Borrowings (0.65) - - 0.49 (0.16)
Gain on acquisition of control over 36.83 - - - 36.83
existing associate
Property, plant and equipment fair - 359.23 - (17.00) 342.23
valuation and newly identified assets
through business combination
Others (140.79) (89.46) - (38.67) (268.92)
3,430.11 673.56 67.99 511.12 4,682.78
Exchange difference on re-statement - - - (30.41) -
of deferred tax balances
3,430.11 673.56 67.99 480.71 4,682.78
Classified as:
Deferred tax assets (Net) - 196.31
Deferred tax liabilities (Net) 3,430.11 4,879.09

(` in million)
Deferred tax liabilities/(assets) As at Acquired Recognised Recognised As at
01 January in business in other in the 31 December
2023 combination comprehensive Consolidated 2023
income** Statement of
Profit and Loss
Accelerated depreciation for tax purposes 3,914.39 - - 213.39 4,127.78
Benefit accrued on government grants 96.59 - - (22.14) 74.45
Carry forward of unused tax losses (61.07) - - 61.07 -
Allowance for doubtful debts (85.32) - - (0.92) (86.24)
Accrued bonus (47.50) - - 2.99 (44.51)
Provision for retirement benefits (481.66) - (6.98) (22.25) (510.89)
Fair valuation of financial instruments (15.22) - - (10.65) (25.87)
Borrowings (1.00) - - 0.35 (0.65)
Gain on acquisition of control over 36.83 - - - 36.83
existing associate
Others 12.44 - - (153.23) (140.79)
3,368.48 - (6.98) 68.61 3,430.11
Exchange difference on re-statement - - - (4.50) -
of deferred tax balances
3,368.48 - (6.98) 64.11 3,430.11
Classified as:
Deferred tax assets (Net) - -
Deferred tax liabilities (Net) 3,368.48 3,430.11

Annual Report 2024 273

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
(i) In one of the subsidiary of the Group, unused unabsorbed depreciation on tangible assets amounting to
` 887.26 million (31 December 2023: ` 1,957.14 million) can be carried forward indefintely.

Notes:

** The amounts recognised in other comprehensive income relates to the re-measurement of net defined retirement benefit
liability and exchange differences arising on translation of foreign operations. Refer note 37 for the amount of the income
tax relating to these components of other comprehensive income.
All significant deferred tax assets have been recognised in the balance sheet.
(ii) Two subsidiaries (31 December 2023: three subsidiaries) included in the Group are under the tax holiday period and based
on the evaluation of future taxability and estimates of reversal of timing differences during the tax holiday periods, no
deferred tax assets/liabilities has been recognised for these subsidiaries.

11. Other non-current assets

(` in million)
As at As at
31 December 2024 31 December 2023
(Unsecured, considered good)
Capital advances 4,862.11 5,194.24
Advances other than capital advances
- Security deposits 104.13 12.07
- Income tax paid (includes amount paid under protest) 16.42 10.42
- Balance with statutory authorities (paid under protest) 107.93 117.21
- Prepaid expenses 26.83 34.18
5,117.42 5,368.12

12. Inventories
(` in million)
As at As at
31 December 2024 31 December 2023
(Valued at lower of cost or net realisable value)
Raw and packing material (including raw material in transit of 13,786.10 9,756.31
` 599.68 (31 December 2023: ` 345.74)
Work in progress 78.51 25.81
Intermediate goods (including goods in transit of ` 220.55 4,582.73 4,372.42
(31 December 2023: ` 232.21))
Finished goods (including goods in transit of ` 223.54 5,233.22 4,160.22
(31 December 2023: ` 152.14))*
Stores and spares 4,231.78 3,190.57
27,912.34 21,505.33
*The Group manufactures as well as purchases the same product from market for sale and is also involved in trading of other
products of capital nature. In the absence of demarcation between manufactured and purchased goods and the value of stock in
trade being insignificant, it is not separately ascertainable and disclosed.
The cost of inventories recognised as an expense during the year are disclosed in Note 30, Note 31, Note 32 and Note 36.

274 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
13. Trade receivables
(` in million)
As at As at
31 December 2024 31 December 2023
Trade receivables considered good - Unsecured 8,243.01 3,330.75
Trade receivables considered good - Secured 215.41 263.10
Trade receivables - Credit impaired 1,077.51 586.23
9,535.93 4,180.08
Less : Allowance for expected credit loss (Refer note 53.2) (1,077.51) (586.23)
8,458.42 3,593.85
Includes amounts due, in the ordinary course of business, from
companies in which directors of the Holding Company are also directors:
Alisha Torrent Closures (India) Private Limited 4.29 0.00*

*Rounded off to Nil.

Trade receivables are non-interest bearing and credit period generally falls in the range of 0 to 120 days.

No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other
person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner,
a director or a member, except as disclosed above.

Trade receivables ageing schedule

31 December 2024
(` in million)
Particulars Outstanding from transaction date
Less than 6 Months- 1-2 Years 2-3 Years More than Total
6 months 1 Year 3 years
Undisputed Trade Receivables – 8,199.98 87.12 72.45 41.33 57.54 8,458.42
considered good
Undisputed Trade Receivables – which - - - - - -
have significant increase in credit risk
Undisputed Trade receivable – credit 463.50 69.04 30.53 17.50 75.59 656.16
impaired
Disputed Trade receivables - considered - - - - - -
good
Disputed Trade receivables – which have - - - - - -
significant increase in credit risk
Disputed Trade receivables – credit 0.45 14.04 80.51 142.19 184.16 421.35
impaired
Total 8,663.93 170.20 183.49 201.02 317.29 9,535.93

Annual Report 2024 275

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
31 December 2023
(` in million)
Particulars Outstanding from date of transactions
Less than 6 months- 1-2 Years 2-3 Years More than Total
6 months 1 year 3 years
Undisputed Trade Receivables – 3,413.46 60.32 57.86 7.35 54.86 3,593.85
considered good
Undisputed Trade Receivables – which - - - - - -
have significant increase in credit risk
Undisputed Trade receivable – credit 193.48 11.64 21.95 6.80 175.79 409.66
impaired
Disputed Trade receivables - considered - - - - - -
good
Disputed Trade receivables – which have - - - - - -
significant increase in credit risk
Disputed Trade receivables – credit - 3.10 3.03 24.51 145.93 176.57
impaired
Total 3,606.94 75.06 82.84 38.66 376.58 4,180.08

14. Cash and cash equivalents

(also for the purpose of Consolidated Statement of Cash Flow)
(` in million)
As at As at
31 December 2024 31 December 2023
Balance with banks in current accounts* 2,094.38 1,707.72
Balance in deposits with original maturity of less than three months# 19,008.68 613.35
Balances with banks in QIP monitoring accounts# 125.02 -
Cash on hand 115.54 101.05
Investment in Liquid Mutual Fund# 1,319.21 -
22,662.83 2,422.12

* Includes inward remittance not yet cleared amounting to ` 50.18 million (31 December 2023: ` 127.77 millions)

#Includes balance of qualified institutional placement (QIP) proceeds of ` 20,055.02 million, which will be utilised for the purpose
as stated in the preliminary placement document for QIP. Net unutilised proceeds from QIP as on 31 December 2024 have been
temporarily invested and kept in fixed deposits of ` 18,630.00 million, mutual fund of ` 1,300.00 million and QIP monitoring
account for ` 125.02 million. (Refer Note 39)

15. Bank balances other than cash and cash equivalents

(` in million)
As at As at
31 December 2024 31 December 2023
Deposits with original maturity more than 3 months but less than 12 1,836.39 2,150.25
months*
Deposits with bank held as margin money - 25.28
Unpaid dividend account** 1.32 0.97
1,837.71 2,176.50

*Includes deposits pledged as security with banks for statutory authority.

**These balances are not available for use by the Group and corresponding balance is disclosed as unclaimed dividend in Note 25.

276 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
16. Other current financial assets
(` in million)
As at As at
31 December 2024 31 December 2023
(Unsecured, considered good)
Interest accrued on:
- Term deposits 148.63 22.37
- Others 46.60 34.99
Security deposits 141.80 137.93
Advances to Employees~ 128.19 141.57
Government grants receivable* 7,110.08 6,002.38
Claims receivable 331.93 595.27
Other receivables 448.93 453.72
8,356.16 7,388.23
~Advance given to key management personnel (Refer Note 46A) 0.76 38.50
* Net of provision amounting to ` 236.45 (31 December 2023: Nil).

17. Current tax assets (Net)

(` in million)
As at As at
31 December 2024 31 December 2023
Advance tax (net of provision) 48.72 3.11
48.72 3.11

18. Other current assets

(` in million)
As at As at
31 December 2024 31 December 2023
(Unsecured, considered good)
Security deposits 17.17 16.79
Advance to related party* 50.92 66.75
Other advances:
- Contractors and suppliers 5,908.02 2,029.35
- Prepaid expenses 501.77 290.14
- Balance with statutory/government authorities 2,736.94 2,732.46
- Other advances 148.74 131.67
9,363.56 5,267.16
*Amounts due, in the ordinary course of business, from related party:
SMV Beverages Private Limited 50.92 66.75

19. Equity share capital

(` in million)
As at As at
31 December 2024 31 December 2023
Authorised share capital:
5,000,000,000 equity shares of `2 each (31 December 2023: 10,000.00 10,000.00
2,000,000,000 equity shares of ` 5 each)
10,000.00 10,000.00
Issued, subscribed and fully paid up:
3,381,510,017 equity shares of ` 2 each (31 December 2023: 6,763.02 6,496.07
1,299,214,976 equity shares of ` 5 each)
6,763.02 6,496.07

Annual Report 2024 277

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
a) Reconciliation of share capital
(` in million)
Particular No. of shares Amount
Balance as at 01 January 2024 1,299,214,976 6,496.07
Add: Shares issued of ` 5 each pursuant to exercise of employee 233,436 1.17
stock options
Add: Sub-division/split of 1 share of face value ` 5 each into such 1,949,172,618 -
number share of face value ` 2 each effective 12 September 2024
(Increase in shares on account of sub-division/split) (Refer note
(g) below)
Add: Shares issued of ` 2 each pursuant to Qualified institutions 132,743,362 265.49
placement (QIP)
Add: Shares issued of ` 2 each pursuant to exercise of employee 145,625 0.29
stock options
Balance as at 31 December 2024 3,381,510,017 6,763.02

(` in million)
Particular No. of shares Amount
Balance as at 01 January 2023 649,549,620 6,495.50
Add: Shares issued of ` 10 each pursuant to exercise of employee 8,412 0.08
stock options
Add: Sub-division/split of 1 share of face value ` 10 each into 649,558,032 -
2 share of face value ` 5 each effective 15 June 2023 (Increase in
shares on account of sub-division/split) (Refer note (g) below)
Add: Shares issued of ` 5 each pursuant to exercise of employee 98,912 0.49
stock options
Balance as at 31 December 2023 1,299,214,976 6,496.07
b) Terms/rights attached to shares
The Holding Company has only one class of equity shares having a par value of ` 2 each. Each holder of
equity share is entitled to one vote per share. In the event of liquidation of the Holding Company, holders of
equity shares will be entitled to receive any of the remaining assets of the Holding Company, after distribution
of all preferential amounts. The distribution will be in proportion to the number of equity shares held by
the shareholders. The dividend, if any, proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
c)  ist of shareholders holding more than 5% of the aggregate equity share capital of the Holding
L
Company at the beginning and at the end of the year :
Shareholders as at 31 December 2024 No. of shares % of shareholding
(face value of ` 2 each)
R J Corp Limited 868,877,060 25.69%
Mr. Ravi Kant Jaipuria 564,736,222 16.70%
Mr. Varun Jaipuria 520,859,870 15.40%

Shareholders as at 31 December 2023 No. of shares % of shareholding

(face value of ` 5 each)
R J Corp Limited 349,750,824 26.92%
Mr. Ravi Kant Jaipuria 229,104,059 17.63%
Mr. Varun Jaipuria 208,343,948 16.04%
As per records of the Holding Company, including its register of shareholders/members and other declaration
received from the shareholders regarding beneficial interest, the above shareholding represents both legal
and beneficial ownerships of shares.

278 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and
shares bought back during the period of five years immediately preceding the reporting date:
(i) During the year ended 31 December 2019, the Holding Company has issued 91,327,613 equity shares of
` 10 each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every 2 (Two) equity share
outstanding on record date.

(ii) During the year ended 31 December 2021, the Holding Company has issued 144,344,360 equity shares of
` 10 each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every 2 (Two) equity share
outstanding on record date.

(iii) During the year ended 31 December 2022, the Holding Company has issued 216,516,540 equity shares of
` 10 each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every 2 (Two) equity share
outstanding on record date.

For the period of five years of the date of the immediately preceding the reporting date, there was no
share allotment made for consideration other than cash except as disclosed above. Further, there has
been no buy back of shares during the period of five years immediately preceding 31 December 2024 and
31 December 2023.

e) Shares held by holding and ultimate Holding Company

(` in million)
As at As at
31 December 2024 31 December 2023
RJ Corp Limited, Parent company* 1,737.75 1,748.75
868,877,060 fully paid-up equity shares of ` 2 each
(31 December 2023: 349,750,824 fully paid-up equity shares of
` 5 each)
1,737.75 1,748.75

*As defined under Ind AS 110 - Consolidated Financial Statements

f) Details of shares held by promoters:

Shareholders as at 31 December 2024 No. of shares % of % change

(face value of ` 2 each) shareholding during the year
R J Corp Limited 868,877,060 25.69% (1.23%)
Mr. Ravi Kant Jaipuria 564,736,222 16.70% (0.93%)
Mr. Varun Jaipuria 520,859,870 15.40% (0.64%)

Shareholders as at 31 December 2023 No. of shares % of % change

(face value of ` 5 each) shareholding during the year
R J Corp Limited 349,750,824 26.92% (0.47%)
Mr. Ravi Kant Jaipuria 229,104,059 17.63% (0.34%)
Mr. Varun Jaipuria 208,343,948 16.04% 0.00%

Annual Report 2024 279

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
g) Sub-division/split of equity shares
i) During the year ended 31 December 2024, the Board of Directors of the Holding Company in their meeting
held on 30 July 2024 recommended the sub-division/split of existing Equity Shares of the Holding
Company from 1 (One) Equity Share having face value of ` 5/- (Rupees Five only) each fully paid-up,
into such number Equity Shares having face value of ` 2/- (Rupees Five only) each fully paid-up. The
above sub-division/split has been approved by the equity shareholders of the Holding Company dated 30
August 2024 through postal ballot. Pursuant to sub-division/split of shares effective 12 September 2024
(“Record Date”), the paid up equity share capital of the Holding Company is ` 6,497.24 consisting of
3,248,621,030 equity shares having face value of ` 2/- (Rupees two only) each fully paid-up.

ii) During the year ended 31 December 2023, the Board of Directors of the Holding Company in their
meeting held on 02 May 2023 recommended the sub-division/split of existing Equity Shares of the
Holding Company from 1 (One) Equity Share having face value of ` 10/- (Rupees Ten only) each fully
paid-up, into 2 (Two) Equity Shares having face value of ` 5/- (Rupees Five only) each fully paid-up. The
above sub-division/split has been approved by the equity shareholders of the Holding Company dated 02
June 2023 through postal ballot. Pursuant to sub-division/split of shares effective 15 June 2023 (“Record
Date”), the paid up equity share capital of the Holding Company is ` 6,495.58 consisting of 1,299,116,064
equity shares having face value of ` 5/- (Rupees Five only) each fully paid-up.

h) Pursuant to QIP the Holding Company has issued 132,743,362 equity shares of ` 2 each at a premium
of ` 563 per share: (Refer note 39) 
Date of allotment Share capital Securities premium Total
19 November 2024 265.49 74,734.51 75,000.00

20. Other equity

Refer Consolidated Statement of Changes in Equity for detailed movement in Other Equity balance.
(` in million)
As at As at
31 December 2024 31 December 2023
Capital reserve on consolidation (3,483.45) (2,294.91)
Capital reserve 533.93 533.93
Securities premium 96,939.28 22,636.59
Share option outstanding account 184.70 84.97
General reserve 444.26 444.26
Retained earnings 68,582.06 45,663.50
Share application money pending allotment - 3.51
Foreign currency translation reserve (3,865.50) (4,202.94)
159,335.27 62,868.91

Description of nature and purpose of each reserve:

Capital reserve on consolidation - Created on additional consideration paid in form of cash on business

combinations involving entities including businesses/entities under common control.

Capital reserve - Created on merger of Varun Beverages (International) Limited with the Holding Company

pursuant to and in accordance with the Court approved scheme of amalgamation. Includes gain from bargain
purchases.

General reserve - Created by way of transfer from debenture redemption reserve on redemption of debentures.

280 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
Securities premium - Created to record the premium on issue of shares. The reserve is utilised in accordance with

the provisions of the Act.

Retained earnings - Created from the profit of the Group, as adjusted for distributions to owners, transfers to

other reserves, etc.

Share option outstanding account - Created to recognise the grant date fair value of options issued to employees

under the employee stock option schemes and is adjusted on exercise / forfeiture of options.

 hare application money pending allotment - Created to record the amount of money received for the purpose
S
of allotment of equity share of the Holding company pending at the reporting date. It will be utilised in accordance
with the provisions of the Companies Act, 2013 upon issuance of equity shares.

 oreign currency translation reserve - Exchange differences arising on translation of the foreign operations of
F
the Group, recognised in other comprehensive income as described in accounting policy and accumulated in a
separate reserve within other equity.

21. Borrowings
A. Non-current borrowings:
(` in million)
As at As at
31 December 2024 31 December 2023
Term loans (secured) (Refer note 21E)
- Loans from banks 8,146.22 31,442.52
- Loan from others 260.67 446.86
8,406.89 31,889.38

Loans and borrowing above are recognised at amortised cost taking into account any discount or premium on
acquisition and fee or costs that are part of effective interest rate, accordingly the outstanding balances above
may not necessarily reconcile with repayment amounts.

The carrying value of financial assets pledged as security for borrowings as disclosed under Note 56.

B. Non-current financial liabilities:

(` in million)
As at As at
31 December 2024 31 December 2023
Lease liabilities (Refer note 47) 3,570.86 1,978.85
3,570.86 1,978.85

C. Current borrowings:

(` in million)
As at As at
31 December 2024 31 December 2023
Loans repayable on demand
- Working capital facilities from banks (secured) (Refer footnote (a)) 9,616.11 7,082.05
- 
Working capital facilities from banks (unsecured) (Refer 1,800.00 2,450.00
footnote (b))
Working capital facility from banks (unsecured) (Refer footnote (c)) 1,450.00 500.00
Current maturities of long-term debts (Refer note 21E) 2,369.65 10,022.44
15,235.76 20,054.49

Annual Report 2024 281

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
a) In case of the Holding Company, the working capital facilities from banks are secured by first charge on entire
current assets of the Holding Company ranking pari-passu amongst the banks and second charge on the
movable and immovable assets of the Holding Company pertaining to specific manufacturing units (wherever
applicable). During the previous year one short term loan facility from a bank was secured by subservient
charge over entire current assets and movable fixed assets (both present and future) of the Holding Company.
These facilities carry interest rates ranging between 7.10% to 7.53 % (31 December 2023: 7.45% to 7.76%).
Working capital facilities in case of subsidiaries amounting to ` 7,182.69 million (31 December 2023: ` 2,277.05
million), are secured mainly by charge on trade receivables, inventories and other current assets of the respective
subsidiary company, ranking pari passu and charge on certain movable and immovable assets of the respective
subsidiary. Some of the facilities of subsidiaries are guaranteed by respective subsidiary company, as per the
terms of respective agreements. The working capital facilities carries interest rates ranging between 5.20% to 17%
(31 December 2023: 5.50% to 14.50%).

b) The Holding Company has availed working capital facilities from banks carrying interest rate 7.16% per annum
(31 December 2023: 7.70% to 7.72% per annum).

c) In case of the Holding Company, working capital facility from a bank carrying interest rate 7.15% per annum is
repayable in two equal instalments from the date of disbursement. During the previous year working capital
facility from a bank carrying interest rate 7.76% per annum is repayable in three equal instalments from the date of
disbursement and was repaid during the year.

There are no defaults in repayment of principal borrowing or interest thereon.

D. Current financial liabilities:

(` in million)
As at As at
31 December 2024 31 December 2023
Lease liabilities (Refer note 47) 1,049.03 390.38
1,049.03 390.38

E. Terms and conditions/details of securities for loans:

(` in million)
Particulars Loan outstanding
31 December 2024 31 December 2023
Non-current Current Non-current Current
Term loans
i) Indian rupee loan from banks (secured)
Loans carrying weighted average rate of interest 1,181.43 547.17 29,283.63 8,068.46
7.56% (31 December 2023: 8.01%) depending
upon tenure of the loans.
These loans are secured on first pari-passu charge
on the entire movable and immovable property,
plant and equipment of the Holding Company
including the territory /franchisee rights acquired
under the business acquisition except vehicles
and lands for which no mortgages have been
created till date.

282 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
Particulars Loan outstanding
31 December 2024 31 December 2023
Non-current Current Non-current Current
ii) Indian rupee loan from banks (secured)
Loans carrying weighted average rate of interest - - - 800.00
Nil (31 December 2023: 7.40%) depending upon
tenure of the loans.
These loans are secured with subservient charge
on movable fixed assets of the Holding Company
and one facility during the previous year was
further secured with first pari passu charge on
the inventories and receivables of the Holding
Company.

iii) Indian rupee loan from banks (secured)

Loans carrying rate of interest 7.95% - 375.00 375.00 541.67
(31 December 2023: 7.95%) depending upon
tenure of the loans.
These loan are secured on first pari-passu charge
on the entire movable assets of the Company
including the territory /franchisee rights acquired
under the business acquisition except vehicles.

iv) Term loan at Varun Beverages Morocco

(a) 
Loan carrying rate of interest of 4.00% 11.27 43.81 54.72 41.67
(31 December 2023: 4.00%) and is secured
by corporate guarantee of the Holding
Company.
(b) 
Loan carrying rate of interest of 4.75% 240.92 98.35 337.04 92.25
(31 December 2023: 5.00%) and is secured
by corporate guarantee of the Holding
Company.
(c) 
Loan carrying rate of interest of 5.75% 1,561.47 257.75 799.95 -
(31 December 2023: 5.75%) and is secured
against Land and plant & machinery.

v) 
Term loan at Lunarmech Technologies Private
Limited
(a) Loan carrying rate of interest of Euribor+88 - - - 99.28
bps and was secured against respective
asset financed.
(b) Loan carrying rate of interest of Euribor+88 - - - 48.69
bps and were secured against respective
asset financed.
(c) Loan carrying rate of interest of Euribor+88 - 96.13 99.28 -
bps (31 December 2023: Euribor+88 bps)
and is secured against current asset and
movable fixed assets.

Annual Report 2024 283

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
Particulars Loan outstanding
31 December 2024 31 December 2023
Non-current Current Non-current Current
(d) Loan carrying rate of interest of 8.10% 0.75 0.25 1.00 -
(31 December 2023: 8.10%). The loan is secured
against current asset and movable fixed assets.
(e) Loan carrying rate of interest of 7.79%. The 142.88 47.63 - -
loan is secured against current asset and
movable fixed assets.
(f) Loan carrying rate of interest of 7.79%. The 142.92 47.64 - -
loan is secured against current asset and
movable fixed assets.

vi) T
 erm loan at Varun Beverages RDC SAS
(a)  Loan carrying rate of interest of 7.25%. 776.14 356.35 491.90 -
The loan is secured against assets of the
company and also by corporate guarantee of
the Holding Company.
(b)  Loan carrying rate of interest of 7.25%. - 231.85 - -
The loan is secured against vehicles of the
company.
vii) Term loan at The Beverage Company Proprietary
Limited
(a) Loan carrying rate of interest of JIBAR+1.45%. 4,088.44 - - -
The loan is secured against assets of the
company and also by corporate guarantee of
the Holding Company.
Total loans from banks (secured) 8,146.22 2,101.93 31,442.52 9,692.02
For repayment terms of above loans, refer note 21F .
Loans from others (secured)
Interest free loans from The Pradeshiya Industrial & 176.18 201.53 308.20 166.86
Investment Corporation of U.P. Limited are repayable
in one instalment after expiry of seven years from the
date of disbursement. Loans are secured against bank
guarantee equivalent to 100% of loan amount valid up
to the repayment date of loan plus six months grace
period.
The loans are recognised at amortised cost basis using
weighted average rate of borrowing on date of receipt,
i.e., 7.63%-8.77% (31 December 2023: 8.52%-9.72%)
The repayment schedule is as under:
Date of repayment Amount
01 November 2025 211.98
31 March 2030 65.90
07 July 2030 139.92
22 February 2031 22.87
01 October 2031 46.59

284 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
Particulars Loan outstanding
31 December 2024 31 December 2023
Non-current Current Non-current Current
Interest free loan from The Director of Industries 84.49 66.19 138.66 163.56
and Commerce, Haryana are repayable in one
instalment after expiry of five years from the date
of disbursement. Loans are secured against bank
guarantee equivalent to 100% of loan amount valid
up to the repayment date of loan plus six months
grace period.
The loans are recognised at amortised cost basis
using weighted average rate of borrowing on date of
receipt, i.e., 8.33% (31 December 2023: 8.33%)
The repayment schedule is as under:

Date of repayment Amount

17 February 2025 43.98
13 October 2025 23.96
21 February 2027 70.83
18 July 2028 33.30
Total loans from others (secured) 260.67 267.72 446.86 330.42
Total 8,406.89 2,369.65 31,889.38 10,022.44

F. Repayment terms:
(` in million)
S.No Description 31 December 2024 31 December 2023 Repayment terms
Non-current Current Non-current Current
i) Indian rupee loan from banks
1 Term loan - 1 - - - 240.00 Loan was repaid during the year
2 Term loan - 2 - - 291.49 291.80 Loan was repaid during the year
3 Term loan - 3 - - 499.32 500.00 Loan was repaid during the year
4 Term loan - 4 - - 200.00 200.00 Loan was repaid during the year
5 Term loan - 5 - - 199.73 200.00 Loan was repaid during the year
6 Term loan - 6 - - 699.75 400.00 Loan was repaid during the year
7 Term loan - 7 560.28 317.77 1,050.00 380.00 Two instalments of ` 158.89 each
due in May 2025 and June 2025, two
instalments of ` 154.70 each due in
May 2026 and June 2026 and two
instalments of ` 125.44 each due in
May 2027 and June 2027.
8 Term loan - 8 - - - 800.00 Loan was repaid during the year
9 Term loan - 9 - - 1,600.00 500.00 Loan was repaid during the year
10 Term loan - 10 - - 1,350.00 300.00 Loan was repaid during the year
11 Term loan - 11 - - 1,333.34 666.66 Loan was repaid during the year

Annual Report 2024 285

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
S.No Description 31 December 2024 31 December 2023 Repayment terms
Non-current Current Non-current Current
12 Term loan - 12 282.65 141.32 3,750.00 1,250.00 Two instalments of ` 70.66 each
due in May 2025 and June 2025,
two instalments of ` 70.66 each due
in May 2026 and June 2026 and two
instalments of ` 70.66 each due in
May 2027 and June 2027.
13 Term loan - 13 - 375.00 375.00 375.00 Two instalments of ` 187.50 each due
in May 2025 and June 2025.
14 Term loan - 14 - - - 166.67 Loan was repaid during the year
15 Term loan - 15 - - 2,000.00 1,000.00 Loan was repaid during the year
16 Term loan - 16 170.50 46.08 2,350.00 100.00 Two instalments of ` 23.04 each
due in May 2025 and June 2025,
two instalments of ` 23.04 each
due in May 2026 and June 2026,
two instalments of ` 32.26 each due
in May 2027 and June 2027,one
instalment of ` 32.26 due in May 2028
and one instalment of ` 27.65.00 due
in June 2028.
17 Term loan - 17 - - 2,400.00 600.00 Loan was repaid during the year
18 Term loan - 18 - - 1,900.00 100.00 Loan was repaid during the year
19 Term loan - 19 - - 750.00 250.00 Loan was repaid during the year
20 Term loan - 20 - - 3,150.00 350.00 Loan was repaid during the year
21 Term loan - 21 - - 2,760.00 240.00 Loan was repaid during the year
22 Term loan - 22 - - 1,500.00 - Loan was repaid during the year
23 Term loan - 23 - - 1,500.00 500.00 Loan was repaid during the year
24 Term loan - 24 168.00 42.00 - - Two instalments of ` 21.00 each
due in May 2025 and June 2025,
two instalments of ` 21.00 each
due in May 2026 and June 2026,
two instalments of ` 21.00 each due
in May 2027 and June 2027, two
instalments of ` 21.00 each due in
May 2028 and June 2028 and two
instalments of ` 21.00 each due in
May 2029 and June 2029.
Total (A) 1,181.43 922.17 29,658.63 9,410.13

286 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
S.No Description 31 December 2024 31 December 2023 Repayment terms
Non-current Current Non-current Current
ii) Term Loan at Varun Beverages Morocco
25 Term loan - 25 11.27 43.81 54.72 41.67 Loan is repayable in 5 quarterly
instalments till January 2026.
26 Term loan - 26 240.92 98.35 337.04 92.25 Loan is repayable in 13 quarterly
instalments till January 2028.
27 Term loan - 27 1,561.47 257.75 799.95 - Loan is repayable in 24 quarterly
instalments till December 2030.
Total (B) 1,813.66 399.91 1,191.71 133.92
iii) Term Loan at Lunarmech Technologies Private Limited
28 Term loan - 28 - - - 99.28 Loan was repaid during the year.
29 Term loan - 29 - - - 48.69 Loan was repaid during the year.
30 Term loan - 30 - 96.13 99.28 - Loan is repayable on 14 April 2025.
31 Term loan - 31 0.75 0.25 1.00 - Loan is repayable in 16 quarterly EMI
starting from March 2025.
32 Term loan - 32 142.88 47.63 - - Loan is repayable in 16 quarterly EMI
starting from March 2025.
33 Term loan - 33 142.92 47.64 - - Loan is repayable in 16 quarterly EMI
starting from March 2025.
Total (C) 286.55 191.65 100.28 147.97
iv) Varun Beverage RDC SAS
34 Term loan - 34 776.14 356.35 491.90 - Loan is repayable in 38 equal monthly
instalments till February 2028.
35 Term loan - 35 - 231.85 - - Loan is repayable in 11 equal monthly
instalments till November 2025.
Total (D) 776.14 588.20 491.90 -
v) Term Loan at The Beverage Company Proprietary Limited
36 Term loan - 36 4,088.44 - - - Loan is repayable on 27 March 2027.
Total (E) 4,088.44 - - -
Total 8,146.22 2,101.93 31,442.52 9,692.02
(A+B+C+D+E)

22. Provisions
(` in million)
As at As at
31 December 2024 31 December 2023
Non-current
Provision for employee benefits (Refer note 40)
Defined benefit liability (net) 1,166.30 1,470.83
Other long term employee obligations 728.04 655.61
1,894.34 2,126.44
Current
Provision for employee benefits (Refer note 40)
Defined benefit liability (net) 6.82 3.99
Other short term employee obligations 438.06 317.72
Others (Refer note 60) 294.12 503.72
739.00 825.43

Annual Report 2024 287

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
23. Other non-current liabilities
(` in million)
As at As at
31 December 2024 31 December 2023
Deferred revenue on government grant 4.37 5.16
Deferred income 42.94 63.24
47.31 68.40

24. Trade payables

(` in million)
As at As at
31 December 2024 31 December 2023
Total outstanding dues of-
Micro enterprises and small enterprises (Refer note 49) 645.75 767.43
Creditors other than micro enterprises and small enterprises 14,958.52 6,815.05
15,604.27 7,582.48

Trade payables ageing schedule

31 December 2024
(` in million)
Particulars Outstanding from date of transactions
Unbilled Less than 1-2 Years 2-3 Years More than Total
1 year 3 years
Undisputed trade payable
Micro enterprises and small enterprises 113.98 528.21 2.88 0.25 0.43 645.75
Others 3,088.40 11,425.05 168.55 131.92 61.49 14,875.41
Disputed trade payable
Micro enterprises and small enterprises - - - - - -
Others - 52.40 12.01 8.85 9.85 83.11
Total 3,202.38 12,005.66 183.44 141.02 71.77 15,604.27

31 December 2023
(` in million)
Particulars Outstanding from date of transactions
Unbilled Less than 1-2 Years 2-3 Years More than Total
1 year 3 years
Undisputed trade payable
Micro enterprises and small enterprises 68.73 692.31 5.34 0.36 0.50 767.24
Others 2,123.29 4,408.76 157.26 16.32 30.08 6,735.71
Disputed trade payable
Micro enterprises and small enterprises - 0.19 - - - 0.19
Others - 52.46 13.18 6.95 6.75 79.34
Total 2,192.02 5,153.72 175.78 23.63 37.33 7,582.48

288 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
25. Other current financial liabilities
(` in million)
As at As at
31 December 2024 31 December 2023
Interest accrued but not due on borrowings 36.44 115.82
Interest payable 48.59 27.21
Payable for capital expenditures 3,639.04 4,543.04
Employee related payables 995.51 810.91
Unclaimed dividends# 1.32 0.97
Security deposits 2,322.51 2,140.44
7,043.41 7,638.39

#Not due for deposit to the Investor Education and Protection Fund in the books of Holding Company.

26. Other current liabilities

(` in million)
As at As at
31 December 2024 31 December 2023
Advances from customers 2,194.82 1,804.71
Statutory dues payable 2,604.36 2,806.31
Deferred income 117.37 39.91
4,916.55 4,650.93

27. Current tax liabilities (Net)

(` in million)
As at As at
31 December 2024 31 December 2023
Provision for tax (net of taxes paid) 656.23 390.02
656.23 390.02

The key components of income tax expense for the year ended 31 December 2024 and 31 December 2023 are:

A. Consolidated Statement of Profit and Loss:

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
(i) Profit and Loss section
(a) Current tax 7,502.05 6,290.81
(b) Adjustment of tax relating to earlier years 5.28 20.55
(c) Deferred tax charge 480.71 64.11
Tax expense reported in the Consolidated Statement of Profit 7,988.04 6,375.47
and Loss
(ii) Other Comprehensive Income (OCI) section
Deferred tax related to items recognised in OCI during the
year:
(a) Net gain/(loss) on remeasurements of defined benefit (67.99) 6.98
plans
Tax charged to OCI (67.99) 6.98

Annual Report 2024 289

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
B. Reconciliation of tax expense between accounting profit at applicable tax rate and effective tax rate:
(` in million)
As at As at
31 December 2024 31 December 2023
Accounting profit before tax 34,330.89 27,393.60
Tax expense at statutory income tax rate of 25.17% (31 8,640.40 6,894.15
December 2023: 25.17%)
Adjustment of tax relating to earlier years 5.28 20.55
Non deductible expenses/income not taxable 64.98 75.14
Deduction claimed u/s Chapter-VI A of Income-tax Act, 1961 by (20.15) (6.90)
Holding Company
Non-Taxable Subsidiaries and effect of Differential Tax Rate (793.69) (658.21)
under various jurisdiction
Income chargeable at special rates (1.64) -
Others 92.86 50.74
Tax expense at effective tax rate reported in the Consolidated 7,988.04 6,375.47
Statement of Profit and Loss

28. Revenue from operations

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Sale of products (inclusive of excise duty) * 198,394.21 158,687.38
Rendering of services 793.03 314.86
Other operating revenue 5,626.04 4,208.39
204,813.28 163,210.63
*Sale of products includes excise duty collected from customers of ` 4,736.78 million (31 December 2023: ` 2,784.82 million) in
subsidiaries.

Disclosure on revenue pursuant to Ind AS 115- Revenue from contract with customers:
A. Reconciliation of revenue recognised with the contracted price:
(` in million)
Particulars Year ended Year ended
31 December 2024 31 December 2023
Gross revenue/Contracted price 206,715.39 162,329.34
Less: Discounts and rebates (7,528.15) (3,327.10)
Revenue from contracts with customers 199,187.24 159,002.24

B. Disaggregation of revenue
a) Information about geographical area
(` in million)
Particulars Year ended Year ended
31 December 2024 31 December 2023
i. Sale of products and rendering of services
(i) Within India 136,173.93 121,594.93
(ii) Outside India 63,013.31 37,407.31
Total sale of products and rendering of services 199,187.24 159,002.24

b) b) Revenue from sale of goods and services are recognised at a point in time.There are no disaggregation
of revenue with respect to this information.
c) No single external customer amounts to 10% or more of the Company’s revenue from operations.

290 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
C. Contract balances:
The following table provides information about trade receivables and contract liabilities from contract with
customers:

Receivables
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Trade receivables 9,535.93 4,180.08
Less: Allowances for expected credit loss (1,077.51) (586.23)
Net receivables 8,458.42 3,593.85

Contract liabilities
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Advance from customers (Refer note 26) 2,194.82 1,804.71
2,194.82 1,804.71

D. Contract asset is the right to consideration in exchange for goods or services transferred to the customer.
Contract liabilities are on account of the advance payment received from customer for which performance
obligation has not yet been completed.

The performance obligation is satisfied when control of the goods or services are transferred to the customers
based on the contractual terms. The Group does not have any remaining performance obligation as contracts
entered for sale of goods are for a shorter duration. Further, there are no contracts for sale of services
wherein, performance obligation is unsatisfied to which transaction price has been allocated.

Payment terms with customers vary depending upon the contractual terms of each contract and generally
falls in the range of 0 to 120 days from the completion of performance obligation.

There is no significant financing component in any transaction with the customers.

E. Government grant recongnised under the head ‘Other operating revenue’ amounts to ` 4,829.26 million
(31 December 2023 ` 3,462.98 million) under different industrial promotion tax exemption schemes.

F. Changes in the contract liabilities balances during the year are as follows:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Balance at the beginning of the year 1,804.71 2,033.83
Addition during the year 2,194.82 1,804.71
Revenue recognised during the year (1,804.71) (2,033.83)
Balance at the closing of the year 2,194.82 1,804.71

Annual Report 2024 291

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
29. Other income
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Interest income on items at amortised cost:
- term deposits 362.97 205.44
- others 56.03 32.56
Gain on sale of current investments 22.47 3.51
Excess provisions and liabilities written back 646.15 322.36
Gain on derecognition of financial instruments 0.08 0.81
Miscellaneous income 124.98 228.91
1,212.68 793.59

30. Cost of materials consumed

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Raw material and packing material consumed
Inventories at beginning of the year 9,756.31 9,613.51
Acquired in business combination 640.72 -
Purchases during the year (net) 87,635.34 72,762.19
98,032.37 82,375.70
Less: Sold during the year 1,308.84 2,354.78
Less: Inventories at end of the year 13,786.10 9,756.31
82,937.43 70,264.61

31. Purchases of stock-in-trade

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Beverages 982.89 1,378.89
Others 5,876.32 3,248.07
6,859.21 4,626.96

32. 
Changes in inventories of finished goods, intermediate goods, stock-in-trade and work-
in-progress
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
As at the beginning of the year
- Finished goods 4,160.22 4,313.41
- Intermediate goods 4,372.42 3,392.40
- Work in progress 25.81 61.80
8,558.45 7,767.61
Acquired in a business combination
- Finished goods 593.63 -
593.63 -

292 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
As at the closing of the year
- Finished goods 5,233.22 4,160.22
- Intermediate goods 4,582.73 4,372.42
- Work in progress 78.51 25.81
9,894.46 8,558.45
Finished goods used as property, plant and equipment* (7.02) (51.85)
(749.40) (842.69)

*The Holding Company and a subsidiary manufactures plastic shells at some of their manufacturing facilities. The shells
manufactured are used for beverages operations of the Group as property, plant and equipment (under the head ‘Containers’).
These containers are sold to third parties. The cost of manufacturing of plastic shells is being shown here separately with a
corresponding debit to property, plant and equipment.

33. Employee benefits expense

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Salaries, wages and bonus* 17,067.81 13,041.12
Contribution to provident fund and other funds* 816.67 679.36
Staff welfare expenses* 803.35 666.78
Share based payments** (Refer note 52) 162.43 78.61
18,850.26 14,465.87

*Refer note 4A for capitalisation of employee benefits expense in setting-up of new manufacturing facilities.
**excluding expenses of ` 0.50 (31 December 2023: ` 0.49) related to one subsidiary, which has been capitalised in new projects.

34. Finance costs

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Interest on items at amortised cost:
- Term loans* 3,039.34 2,044.26
- Working capital facilities* 919.71 214.28
- Financial liabilities (inclusive of interest on lease liabilities 440.42 260.05
` 404.03 (31 December 2023: ` 170.04))
- Bank guarantee fees 16.39 17.82
- Others (inclusive of interest on income tax ` 6.50 (31 69.56 130.03
December 2023: ` 82.28))
Other ancillary borrowing costs 18.44 14.55
4,503.86 2,680.99

*Refer note 4A for capitalisation of finance costs in setting-up of new manufacturing facilities.

Annual Report 2024 293

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
35. Depreciation, amortisation expense
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Depreciation on property, plant and equipment (refer note 4A) 8,386.95 6,409.04
Amortisation of intangible assets (refer note 5B) 268.38 40.51
Amortisation of ROU (refer note 4C) 818.53 359.51
9,473.86 6,809.06

36. Other expenses*

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Power and fuel 6,295.08 5,502.85
Repairs to plant and equipment 3,837.09 2,973.81
Repairs to buildings 292.18 178.12
Other repairs 1,163.65 923.29
Consumption of stores and spares 1,512.34 1,296.28
Rent (Refer note 47 (iv)) 970.54 801.60
Rates and taxes 518.68 901.80
Insurance 341.38 180.99
Printing and stationery 105.80 91.43
Communication 241.28 121.27
Travelling and conveyance 1,550.41 1,215.23
Sitting fees paid to directors (Refer note 46A) 8.45 5.85
Payment to auditors** 43.13 27.69
Vehicle running and maintenance 1,235.53 594.23
Lease and hire (Refer note 47 (iv)) 645.67 297.62
Security and service charges 847.36 564.00
Legal, professional and consultancy 872.70 510.05
Bank charges 324.72 234.96
Advertisement and sales promotion 2,521.15 1,963.65
Meeting and conferences 90.03 117.98
Royalty 177.84 165.93
Freight, octroi and insurance paid (net) 14,031.34 11,020.58
Delivery vehicle running and maintenance 836.18 832.34
Distribution expenses 3,064.82 2,250.15
Loading and unloading charges 1,109.55 881.69
Donations 4.16 2.23
Property, plant and equipment written off 33.26 1.37
Loss on disposal of property, plant and equipment (net) 728.70 842.27
Bad debts and advances written off 28.73 3.24
Allowance for expected credit loss and advances 84.85 69.47
Corporate social responsibility expenditure 317.92 169.42
Net loss on foreign currency transactions and translations 634.02 574.92
General office and other miscellaneous 599.75 499.90
45,068.29 35,816.21
*Refer note 4A for capitalisation of other expenses in setting-up of new manufacturing facilities.

294 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
**Includes payment to statutory auditors of the Holding Company as follows:-
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Services rendered for:
- Audit and reviews 13.50 11.46
- taxation matters 3.23 2.11
- other matters# 1.40 1.86
- reimbursement of expenses 0.94 0.23
19.07 15.66

#Excludes expense of ` 6.07 (31 December 2023: ` Nil) towards fee related to share issue expenes, netted off with share
premium account and expense of ` Nil (31 December 2023: ` 0.23) towards other matters, which has been capitalised in new
projects.

37. Other comprehensive income (OCI)

The disaggregation of changes to OCI by each type of reserves in equity is shown below:

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Retained earnings
Re-measurement gain/(loss) on defined benefit plans 288.77 (28.16)
Tax impact on re-measurement gains on defined benefit plans (67.99) 6.98
(Refer note 10)
Exchange differences arising on translation of foreign operations 356.41 (58.83)
577.19 (80.01)

38. Composition of the Group

These consolidated financial statements include the respective financial statements of Varun Beverages Limited
(the “Parent Company” or the “Holding Company”), its subsidiaries and the results of operations of its associates
& joint venture as listed below. The principal activity of the Parent Company and its subsidiaries predominantly
comprise manufacturing and sale of beverages including its packing material.

Name of the company/ Nature Country of Proportion of ownership interests held by

entity incorporation and the Group at year end
principal place of As at As at
business 31 December 2024 31 December 2023
Varun Beverages (Nepal) Foreign wholly
Nepal 100.00% 100.00%
Private Limited ("VBL Nepal") owned subsidiary
Varun Beverages Lanka
Foreign wholly
(Private) Limited Sri Lanka 100.00% 100.00%
owned subsidiary
("VBL Lanka")
Varun Beverages Morocco Foreign wholly
Morocco 100.00% 100.00%
SA ("VBL Morocco") owned subsidiary
Ole Spring Bottlers Private Foreign wholly
Sri Lanka 100.00% 100.00%
Limited ("Ole")* owned subsidiary
Varun Beverages (Zambia)
Foreign subsidiary Zambia 90.00% 90.00%
Limited ("VBL Zambia")
Varun Beverages
(Zimbabwe) (Private) Foreign subsidiary Zimbabwe 85.00% 85.00%
Limited ("VBL Zimbabwe")
Varun Beverages RDC SAS Foreign wholly Democratic Republic
100.00% 100.00%
("VBL RDC") owned subsidiary of the Congo

Annual Report 2024 295

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
Name of the company/ Nature Country of Proportion of ownership interests held by
entity incorporation and the Group at year end
principal place of As at As at
business 31 December 2024 31 December 2023
Varun Beverages South Foreign wholly
South Africa 100.00% 100.00%
Africa (PTY) Limited** owned subsidiary
Lunarmech Technologies Domestic
India 100.00% 60.07%
Private Limited# subsidiary
Varun Beverages Foreign wholly
Dubai 100.00% 100.00%
International DMCC owned subsidiary
VBL Mozambique, SA^ Foreign wholly
Mozambique 100.00% 100.00%
owned subsidiary
The Beverage Company
Proprietary Limited Foreign subsidiary South Africa 95.00% 0.00%
("Bevco")@
The Beverage Company
Bidco Proprietary Foreign subsidiary South Africa 95.00% 0.00%
Limited^^@
Little Green Beverages
Foreign subsidiary South Africa 95.00% 0.00%
Proprietary Limited^^@
Softbev Proprietary
Foreign subsidiary South Africa 95.00% 0.00%
Limited^^@
Varun Foods Zimbabwe Foreign wholly
Zimbabwe 100.00% 0.00%
(Private) Limited$ owned subsidiary
Clean Max Tav Private
Associate India 26.00% 26.00%
Limited
Huoban Energy 7 Private
Associate India 26.34% 26.34%
Limited~
IDVB Recycling Operations
Joint Venture India 50.00% 50.00%
Private Limited
*subsidiary of VBL Lanka
**w.e.f 23 May 2023 (refer note 50)
# wholly owned subsidiary w.e.f. 16 December 2024 (refer note 50(ii))
^w.e.f 21 November 2023 (refer note 50(viii)
@Acquired on 26 March 2024 (refer note 50(i))
$ w.e.f 22 May 2024 (refer note 50(iii))
~w.e.f 09 May 2023 (refer note 6)
^^subsidiary of Bevco

39. During the year ended 31 December 2024, pursuant to Qualified institutions placement (QIP), the Holding Company
has raised ` 75,000 million through fresh issue of 132,743,362 equity shares of ` 2 each at a premium of ` 563 per
share on 19 November 2024. The Audit, Risk Management and Ethics Committee and the Board of Directors noted
the utilisation of funds raised through such fresh issue of equity shares to be in line with the object of the issue,
the details of which are as follows:
(` in million)
Particulars Amount as Amount Amount Unutilised/
per placement utilised upto (Excess spent) as at
document 31 December 2024 31 December 2024
Repayment / pre-payment, in part or in full, of certain 56,000.00 50,475.46 5,524.54
outstanding borrowings availed by Holding Company
and/or one of our Subsidiaries
Inorganic acquisitions and general corporate purposes 18,390.00 3,858.42 14,531.58
Share issue expenses# 610.00 611.10 (1.10)
Total 75,000.00 54,944.98 20,055.02
#excludes expenses of ` 4.28 million which is paid subsequent to year ended 31 December 2024.
Unutilised amounts have been kept in fixed deposits, mutual funds and QIP monitoring account.

296 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
40. Gratuity and other post-employment benefit plans
Parent Company and other components of the Group provide its employees gratuity and compensated absences
benefits in accordance with the respective local statutory requirements and entity’s policies. The following tables
summaries the changes in their present values over the reporting periods, components of expense recognised in
the Consolidated Statement of Profit and Loss, their funded status and amounts recognised in the consolidated
balance sheet:

(` in million, unless otherwise stated)

Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Changes in present values are as follows:
Balance at the beginning of the year 2,147.71 1,852.54 973.33 898.93
Acquired on business combination - - 90.61 -
Current service cost 278.76 235.94 229.96 168.68
Interest cost 152.92 137.42 70.63 65.54
Benefits settled (129.57) (101.03) (78.61) (59.74)
Actuarial loss/(gain) (238.15) 25.66 (118.02) (99.43)
Foreign currency translation difference 4.46 (2.82) (1.80) (0.65)
Balance at the end of the year 2,216.13 2,147.71 1,166.10 973.33

(` in million, unless otherwise stated)

Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Changes in fair value of plan assets are as
follows:
Plan assets at the beginning of the year, at 672.89 418.43 - -
fair value
Expected income on plan assets 49.81 36.31 - -
Actuarial gain/(loss) 28.35 (2.51) - -
Contributions by employer 300.00 250.00 - -
Benefits settled (8.04) (29.34) - -
Plan assets at the end of the year, at fair
1,043.01 672.89 - -
value

The Holding Company has taken an insurance policy against its liability towards gratuity, the same has been
disclosed as plan assets above.
(` in million, unless otherwise stated)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Reconciliation of present value of the
obligation and the fair value of the plan assets:
Present value of obligation 2,216.13 2,147.71 1,166.10 973.33
Fair value of plan assets (1,043.01) (672.89) - -
Net liability recognised in the consolidated 1,173.12 1,474.82 1,166.10 973.33
balance sheet

Annual Report 2024 297

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million, unless otherwise stated)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Amount recognised in consolidated
statement of profit and loss:
Current service cost 278.76 235.94 229.96 168.68
Interest cost 152.92 137.42 70.63 65.54
Expected return on plan assets (49.81) (36.31) - -
Actuarial gain - - (118.02) (99.43)
Net cost recognised 381.87 337.05 182.57 134.79

(` in million, unless otherwise stated)

Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Amount recognised in Other
Comprehensive Income:
Actuarial changes arising from changes in (229.31) 21.67 - -
financial assumptions
Actuarial changes arising from changes in (5.02) - - -
demographic assumptions
Experience adjustments (26.09) 3.98 - -
Return on plan assets (28.35) 2.51 - -
Amount recognised loss/(gain) (288.77) 28.16 - -

(` in million, unless otherwise stated)

Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Assumptions used:
Mortality IALM 2012-2014 IALM 2012-2014 IALM 2012-2014 IALM 2012-2014
and A 1967/70 and A 1967/70
mortality mortality
table (issued
table (issued
by Institute
by Institute of Actuaries,
of Actuaries, London)
London)
Discount rate 6.95% - 11.50% 7.23%-13.50% 6.95%-8.00% 7.23%-8.50%
Rate of return on plan assets 7.33% - 7.67% 6.79%-7.65% 0.00% 0.00%
Withdrawal rate 1%-12% 3%-12% 1%-12% 3%-12%
Salary increase 6% -10% 6% -12% 6%-11% 6%-12%
Rate of leave availment - - 3.50%-20% 3.50%-20%
Retirement age (Years) 58-70 years 58-70 years 58-70 years 58-70 years

These assumptions were developed by management of the respective company/entity with the assistance of
independent actuaries wherever applicable. Discount factors are determined close to each year-end by reference
to market yields of high quality corporate bonds that are denominated in the respective currency in which the
benefits will be paid and that have terms to maturity approximating to the terms of the related pension obligations.
Other assumptions are based on current actuarial benchmarks and respective management’s historical experience.

298 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
The defined benefit obligation and plan assets are composed by geographical locations as follows:
(` in million, unless otherwise stated)
31 December 2024 India Outside India Total
Defined benefit obligation 2,141.35 74.78 2,216.13
Fair value of plan assets 1,043.01 - 1,043.01
(` in million, unless otherwise stated)
31 December 2023 India Outside India Total
Defined benefit obligation 2,097.23 50.48 2,147.71
Fair value of plan assets 672.89 - 672.89

A quantitative sensitivity analysis for significant assumption is as shown below:

(` in million, unless otherwise stated)
Sensitivity level Gratuity Compensated Absences
31 December 31 December 31 December 31 December 31 December 31 December
2024 2023 2024 2023 2024 2023
Discount rate +1% +1% (137.23) (129.68) (33.42) (29.68)
-1% -1% 123.68 145.63 31.70 31.60
Salary increase +1% +1% 121.55 138.06 31.11 29.98
-1% -1% (132.14) (125.76) (32.20) (28.73)
Withdrawal rate +1% +1% (21.13) (30.37) (9.65) (9.80)
-1% -1% 19.23 33.59 9.19 10.33

The sensitivity analysis above has been determined based on reasonably possible changes of the assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

Risk associated:
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate
determined by reference to Government Bonds Yield. If plan liability is funded and return
on plan assets is below this rate, it will create a plan deficit.
Interest risk A decrease in the bond interest rate (discount rate) will increase the plan liability.
(discount rate risk)
Mortality risk The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants. For this report we have used Indian Assured
Lives Mortality (2012-2014) (31 December 2023: (2012-14) ultimate table). A change in
mortality rate will have a bearing on the plan's liability.
Salary risk The present value of the defined benefit plan liability is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase of salary
in future for plan participants from the rate of increase in salary used to determine the
present value of obligation will have a bearing on the plan's liability.

Effect of the defined benefit plan on the Holding Company’s future cash flows:
Funding arrangements and funding policy:
The Holding Company has purchased an insurance policy to provide for payment of gratuity to the employees.
Every year, the insurance Holding Company carries out a funding valuation based on the latest employee data
provided by the Holding Company. Any deficit in the assets arising as a result of such valuation is funded by the
Holding Company.

Annual Report 2024 299

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
Expected contribution during the next annual reporting period:
The Holding Company’s best estimate of contribution during the next financial year approximates to ` 1,310.68
million (31 December 2023: ` 1,637.97 million).

The following are maturity profile of Defined Benefit Obligations in future years (before adjusting fair
value of plan assets):

(` in million, unless otherwise stated)

Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
i) Weighted average duration of the 6-6.2 years 6-10 years 3-5 years 3-5 years
defined benefit obligation
ii) Expected cash flows over the years
(valued on undiscounted basis):
Duration (years)
1 366.32 328.23 357.96 315.81
2 to 5 1,065.09 961.20 682.20 627.31
Above 5 2,134.70 2,433.78 307.83 312.80
3,566.11 3,723.21 1,347.99 1,255.92

Defined contribution plan:

Contribution to defined contribution plans, recognised as expense for the year is as under:
Employer’s contribution to provident and other funds ` 816.67 million (31 December 2023 ` 679.36 million) (Refer
note 33)

41. Earnings per share (EPS)

(` in million, unless otherwise stated)
31 December 2024 31 December 2023
Profit attributable to the equity shareholders 25,946.33 20,559.22
Weighted average number of equity shares outstanding during the
3,264,147,731 3,247,850,643
year for calculating basic earnings per share (nos.)*
Add: Weighted average number of potential equity shares on
1,610,654 1,397,832
account of employee stock options*
Weighted average number of equity shares outstanding during the
3,265,758,385 3,249,248,475
year for calculating diluted earnings per share (nos.)*
Nominal value per equity shares (`)* 2.00 2.00
Basic earnings per share (`) 7.95 6.33
Diluted earnings per share (`) 7.94 6.33

*Previous year numbers are adjusted for shares splits during the current year (refer note 19(g)).

300 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
42. Dividend
(` in million)
31 December 2024 31 December 2023
Dividend on equity shares declared and paid during the year:
Final dividend 1,624.24 649.55
Interim dividend 1,624.31 1,623.93

43. Contingent liabilities

(` in million)
As at As at
31 December 2024 31 December 2023
Claims against the Group not acknowledged as debts (being contested):
i. Goods and Service Tax 308.74 140.90
ii. For excise and service tax 67.88 103.35
iii. For customs 207.81 90.75
iv. For sales tax (VAT)/entry tax 1,005.20 778.65
v. For income tax 771.29 378.35
vi. For mandi tax and others* 205.02 388.60

*excludes pending matters where amount of liability is not ascertainable.

44. Commitments
(` in million, unless otherwise stated)
31 December 2024 31 December 2023
a. Guarantee issued to third party by subsidiaries for business 458.48 373.39
purposes
b. 
Estimated amount of contracts remaining to be executed on 26,908.22 30,726.98
capital account and not provided for (net of advances ` 4,862.11
(31 December 2023 ` 5,194.24))*

*Inclusive of commitment as mentioned in note no. 50 (iv) and (v).

45. Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Holding Company is required to
use specified methods for computing arm’s length price in relation to specified international and domestic
transactions with its associated enterprises. Further, the Holding Company is required to maintain prescribed
information and documents in relation to such transactions. The appropriate method to be adopted will depend
on the nature of transactions/ class of transactions, class of associated persons, functions performed and other
factors, which have been prescribed. The Holding Company is in the process of updating its transfer pricing
documentation for the current financial year. Based on the preliminary assessment, the management is of the
view that the update would not have a material impact on the tax expense recorded in these consolidated
financial statements. Accordingly, these consolidated financial statements do not include any adjustments for
the transfer pricing implications, if any.

Annual Report 2024 301

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
46. Related party disclosures (as per Ind AS-24)
Following are the related parties and transactions entered with related parties for the relevant financial year:
(i) List of related parties and relationships:-
I. Key managerial personnel (KMPs)
Mr. Ravi Kant Jaipuria Non-executive chairman
Mr. Varun Jaipuria Executive vice-chairman and Whole time Director
Mr. Raj Pal Gandhi Whole Time Director
Mr. Rajinder Jeet Singh Bagga Whole Time Director
Mrs. Sita Khosla Non-executive independent director
Dr. Ravi Gupta Non-executive independent director
Mrs. Rashmi Dhariwal Non-executive independent director
Mr. Abhiram Seth Non-executive independent director (w.e.f 02 May 2023)
Mr. Anil Kumar Sondhi Non-executive independent director (w.e.f 02 May 2023)
Mr. Pradeep Khushalchand Sardana Non-executive independent director (till 27 March 2023)
Non-executive Non-independent director (w.e.f 21
Dr. Naresh Kumar Trehan
April 2024)
Mr. Ravi Batra Company secretary
Mr. Mahavir Prasad Garg Company secretary of the parent, namely RJ Corp Limited
Mr. Lalit Malik Chief Financial Officer (till 13 May 2024)
Mr. Rajesh Chawla Chief Financial Officer (w.e.f 14 May 2024)

II. Parent and ultimate parent

RJ Corp Limited Parent

III. Fellow subsidiaries and entities controlled by parent and ultimate parent*

Devyani International Limited

Devyani Food Industries Limited
Varun Food and Beverages Zambia Limited
Varun Developers Private Limited
Wellness Holdings Limited
SVS India Private Limited
Ole Marketing (Private) Limited
Devyani Food Industries (Kenya) Limited
Devyani Airport Services (Mumbai) Private Limited#
Devyani International Nepal Private Limited
Cryoviva Biotech Private Limited

IV. Joint venture and associate*

IDVB Recycling Operations Private Limited Joint Venture
Clean Max Tav Private Limited Associate
Huoban Energy 7 Private Limited Associate (w.e.f 09 May 2023)

V. Relatives of KMPs*
Mrs. Dhara Jaipuria
Mrs. Devyani Jaipuria
Mr. Ravindra Dhariwal

302 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
VI. Entities in which a director or his/her relative is a member/director/trustee*
SMV Beverages Private Limited
Alisha Torrent Closures (India) Private Limited
Lineage Healthcare Limited
Jai Beverages Private Limited
  RJ Foundation
  Global Health Limited

VII. Entities which are post employment benefits plans

VBL Employees’ Gratuity Trust
*With whom the Group had transactions during the current year and previous year.
#Amalgamated with Devyani International Limited w.e.f. 01 April 2022 vide Hon’ble National Company Law Tribunal
order dated 13 July 2023.

(ii) Terms and conditions of transactions with related parties

The transactions with related parties are made in the ordinary course of business and on terms equivalent
to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and
settlement occurs in cash. This assessment is undertaken each financial year through examining the financial
position of the related party and the market in which the related party operates.

(iii) Transactions with KMPs (Refer note 46A)

(iv) Transactions with related parties (Refer note 46B)

46A. Transactions with KMPs

(` in million)
For year ended 2024 For year ended 2023
I. Remuneration paid
Mr. Ravi Kant Jaipuria 204.99 151.72
Mr. Varun Jaipuria 72.02 54.02
Mr. Raj Pal Gandhi 67.18 62.45
Mr. Ravi Batra 16.18 14.85
Mr. Rajinder Jeet Singh Bagga 61.56 57.66
Mr. Rajesh Chawla 7.41 6.35
Mr. Mahavir Prasad Garg 3.59 2.99
Mr. Lalit Malik 38.17 20.63

II. Director sitting fees paid

Mr. Pradeep Khushalchand Sardana - 0.10
Mrs. Sita Khosla 1.70 1.00
Dr. Ravi Gupta 2.20 1.40
Mrs. Rashmi Dhariwal 2.90 1.80
Mr. Abhiram Seth 0.60 0.40
Mr. Anil Kumar Sondhi 0.80 0.40

III. Dividend paid

Mr. Varun Jaipuria 520.86 364.60
Mr. Raj Pal Gandhi 6.59 4.66
Mr. Ravi Batra 0.02 -
Mr. Rajesh Chawla 0.01 -
Mr. Ravi Kant Jaipuria 565.90 403.11
Mr. Rajinder Jeet Singh Bagga 1.46 1.02
Mr. Abhiram Seth 0.00 -
Mr. Pradeep Khushalchand Sardana - 0.00

Annual Report 2024 303

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
(` in million)
For year ended 2024 For year ended 2023
IV. Defined benefit obligation (Cumulative) for KMP
i. Gratuity
Mr. Varun Jaipuria 69.55 56.52
Mr. Raj Pal Gandhi 54.84 53.21
Mr. Ravi Batra 3.87 3.41
Mr. Mahavir Prasad Garg 1.21 0.97
Mr. Rajinder Jeet Singh Bagga 49.13 45.13
Mr. Rajesh Chawla 1.30 -
Mr. Lalit Malik - 0.01

ii. Compensated absences

Mr. Varun Jaipuria 26.47 21.01
Mr. Raj Pal Gandhi 15.05 15.19
Mr. Ravi Batra 2.34 2.29
Mr. Mahavir Prasad Garg 0.68 0.68
Mr. Rajinder Jeet Singh Bagga 13.59 12.93
Mr. Rajesh Chawla 1.51 -
Mr. Lalit Malik - 0.79

V. Advance given
Mr. Lalit Malik - 38.50
Mr. Mahavir Prasad Garg 0.85 -
Mr. Ravi Batra 4.40 -

VI. Balances (payable)/receivable outstanding at the end of

the year, net
Mr. Varun Jaipuria (3.70) (2.78)
Mr. Raj Pal Gandhi (2.20) (1.96)
Mr. Rajinder Jeet Singh Bagga (2.49) (2.22)
Mr. Rajesh Chawla (0.54) (0.49)
Mr. Ravi Batra (0.80) (0.73)
Mr. Mahavir Prasad Garg 0.52 0.46
Mr. Lalit Malik - 37.02
Dr. Ravi Gupta - (0.09)
Mrs. Rashmi Dhariwal - (0.09)
Mr. Abhiram Seth - (0.09)
Mr. Anil Kumar Sondhi - (0.09)
Mrs. Sita Khosla - (0.09)

Amounts below the rounding off norms adopted by the Group are presented as “0.00”.
Note:
(i) Stock options have been granted to KMPs of the Group. The number of stock options granted to such KMPs outstanding as
at 31 December 2024: 35,000 (31 December 2023 : 145,000). However as the liability has not been determined for individual
employees, the charge thereof for the individual employees is not disclosed above.

Previous year numbers are adjusted for shares splits during the current year (refer note 19(g)).

304 Varun Beverages Limited

 Summary of material accounting policies and other explanatory information on the Consolidated
Financial Statements for the year ended 31 December 2024

46B. Transactions with related parties

(` in million)
Description Parent and ultimate Fellow subsidiaries and Joint Venture and Relatives of KMPs Entities in which a Entities which are post Total
parent entities controlled by Associate (or an director or his/her employment benefits
parent and ultimate associate of any relative is a member/ plans
parent member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Sale of goods
- SMV Beverages Private Limited - - - - - - - - 119.19 105.41 - - 119.19 105.41
- Alisha Torrent Closures (India) - - - - - - - - 11.45 11.35 - - 11.45 11.35
Private Limited
- Devyani Food Industries - - 3.95 32.38 - - - - - - - - 3.95 32.38
(Kenya) Limited
- Jai Beverages Private Limited - - - - - - - - 115.85 170.49 - - 115.85 170.49
- Devyani International Limited - - 38.37 59.15 - - - - - - - - 38.37 59.15
- Devyani Food Industries Limited - - 32.57 30.19 - - - - - - - - 32.57 30.19
- Lineage Healthcare Limited - - - - - - - - 0.10 0.11 - - 0.10 0.11
- Devyani Airport Services - - - 2.02 - - - - - - - - - 2.02
(Mumbai) Private Limited
CORPORATE OVERVIEW

- Devyani International Nepal - - 13.03 - - - - - - - - - 13.03 -

Private Limited
- RJ Foundation - - - - - - - - 0.00 - - - 0.00 -

Sale of raw materials and stores

- Devyani Food Industries - - - 8.50 - - - - - - - - - 8.50
(Kenya) Limited
- Jai Beverages Private Limited - - - - - - - - 164.40 - - - 164.40 -
- Devyani Food Industries Limited - - 34.10 45.91 - - - - - - - - 34.10 45.91
- SMV Beverages Private Limited - - - - - - - - 99.45 172.40 - - 99.45 172.40
STATUTORY REPORTS

Purchase of goods
- SMV Beverages Private Limited - - - - - - - - 449.81 575.53 - - 449.81 575.53
- Devyani Food Industries Limited - - 291.16 384.89 - - - - - - - - 291.16 384.89

Purchase of raw materials and

stores
- SMV Beverages Private Limited - - - - - - - - 5.32 16.65 - - 5.32 16.65
- Devyani Food Industries Limited - - 5.61 60.45 - - - - - - - - 5.61 60.45
- Alisha Torrent Closures (India) - - - - - - - - 2.19 - - - 2.19 -

Annual Report 2024

Private Limited
FINANCIAL STATEMENTS

305
 Summary of material accounting policies and other explanatory information on the Consolidated

306
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Fellow subsidiaries and Joint Venture and Relatives of KMPs Entities in which a Entities which are post Total
parent entities controlled by Associate (or an director or his/her employment benefits
parent and ultimate associate of any relative is a member/ plans
parent member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023

Varun Beverages Limited

Loan given
- IDVB Recycling Operations - - - - - 10.00 - - - - - - - 10.00
Private Limited
- Varun Developers Private - - - 407.08 - - - - - - - - - 407.08
Limited

Loan taken
-Varun Developers Private Limited - - - 407.08 - - - - - - - - - 407.08

Conversion of loan into

investment
- IDVB Recycling Operations - - - - - 10.00 - - - - - - - 10.00
Private Limited

Interest received/(paid)
- SMV Beverages Private Limited - - - - - - - - (4.00) (7.00) - - (4.00) (7.00)
- IDVB Recycling Operations Private - - - - - 0.68 - - - - - - - 0.68
Limited

Contribution to corporate social

responsibility activities
- RJ Foundation - - - - - - - - 308.11 158.50 - - 308.11 158.50

Equity investment
- IDVB Recycling Operations - - - - 369.93 120.00 - - - - - - 369.93 120.00
Private Limited
- Clean Max Tav Private Limited - - - - - 32.82 - - - - - - - 32.82
- Huoban Energy 7 Private Limited - - - - - 21.24 - - - - - - - 21.24

Professional charges/Salary paid

- Mr. Ravindra Dhariwal - - - - - - - 1.25 - - - - - 1.25

Travelling expenses
- Wellness Holdings Limited - - - 102.02 - - - - - - - - - 102.02

Contribution to gratuity trust

- VBL Employees' Gratuity Trust - - - - - - - - - - 300.00 250.00 300.00 250.00
 Summary of material accounting policies and other explanatory information on the Consolidated
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Fellow subsidiaries and Joint Venture and Relatives of KMPs Entities in which a Entities which are post Total
parent entities controlled by Associate (or an director or his/her employment benefits
parent and ultimate associate of any relative is a member/ plans
parent member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Dividend paid

- RJ Corp Limited 871.63 615.09 - - - - - - - - - - 871.63 615.09

- Mrs. Dhara Jaipuria - - - - - - 0.03 0.02 - - - - 0.03 0.02

- Mrs. Devyani Jaipuria - - - - - - 78.78 55.15 - - - - 78.78 55.15

(Recovery of Expenses incurred

by the Company on behalf of
others)/expenses incurred by
others on behalf of the Company

- Devyani International Limited - - 5.58 3.37 - - - - - - - - 5.58 3.37

- RJ Corp Limited (1.73) (2.43) - - - - - - - - - - (1.73) (2.43)

CORPORATE OVERVIEW

- Devyani Food Industries - - - (0.61) - - - - - - - - - (0.61)

(Kenya) Limited

- Devyani Food Industries Limited - - (24.70) (21.36) - - - - - - - - (24.70) (21.36)

Licence fee paid

- Devyani Food Industries Limited - - 1.50 0.90 - - - - - - - - 1.50 0.90

Purchase of property, plant and

equipment
STATUTORY REPORTS

- Devyani Food Industries (Kenya) - - 1.86 - - - - - - - - - 1.86 -

Limited

Rent/ lease charges paid/

(received)

- RJ Corp Limited 112.80 112.80 - - - - - - - - - - 112.80 112.80

- Devyani Food Industries Limited - - (8.82) (8.82) - - - - - - - - (8.82) (8.82)

- SMV Beverages Private Limited - - - - - - - - 27.00 27.00 - - 27.00 27.00

Annual Report 2024

- SVS India Private Limited - - 3.24 2.97 - - - - - - - - 3.24 2.97
FINANCIAL STATEMENTS

307
 Summary of material accounting policies and other explanatory information on the Consolidated

308
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Fellow subsidiaries and Joint Venture and Relatives of KMPs Entities in which a Entities which are post Total
parent entities controlled by Associate (or an director or his/her employment benefits
parent and ultimate associate of any relative is a member/ plans
parent member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023

Varun Beverages Limited

IT infrastructure support fee

- Devyani Food Industries Limited - - 16.22 11.96 - - - - - - - - 16.22 11.96

-  RJ Corp Limited 1.75 0.84 - - - - - - - - - - 1.75 0.84

- Devyani Food Industries (Kenya) - - 2.81 2.06 - - - - - - - - 2.81 2.06

Limited

- Devyani International Limited - - 10.13 4.41 - - - - - - - - 10.13 4.41

- Cryoviva Biotech Private Limited - - 3.94 3.16 - - - - - - - - 3.94 3.16

- Lineage Healthcare Limited - - - - - - - - 0.49 0.57 - - 0.49 0.57

Capital commitments

- SMV Beverages Private Limited - - - - - - - - 156.60 201.60 - - 156.60 201.60

Medical Expenditure paid

- Global Health Limited - - - - - - - - 0.15 0.11 - - 0.15 0.11

Utility charges

- Clean Max Tav Private Limited - - - - 67.40 28.24 - - - - - - 67.40 28.24

- Huoban Energy 7 Private - - - - 39.58 13.34 - - - - - - 39.58 13.34

Limited

Advance paid for acquisition of

assets

- SMV Beverages Private Limited - - - - - - - - 45.00 - - - 45.00 -

 Summary of material accounting policies and other explanatory information on the Consolidated
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Fellow subsidiaries and Joint Venture and Relatives of KMPs Entities in which a Entities which are post Total
parent entities controlled by Associate (or an director or his/her employment benefits
parent and ultimate associate of any relative is a member/ plans
parent member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Balances outstanding at the end
of the year, (net)

A. Receivable/(payable), net

- Devyani International Limited - - 22.35 11.90 - - - - - - - - 22.35 11.90

- RJ Corp Limited 67.19 36.24 - - - - - - - - - - 67.19 36.24

- Devyani International Nepal - - 0.92 0.49 - - - - - - - - 0.92 0.49

Private Limited

- Lineage Healthcare Limited - - - - - - - - 0.59 0.39 - - 0.59 0.39

- Ole Marketing (Private) Limited - - 28.09 24.68 - - - - - - - - 28.09 24.68

- SMV Beverages Private Limited - - - - - - - - 129.42 100.23 - - 129.42 100.23

CORPORATE OVERVIEW

- Devyani Food Industries - - 3.66 24.94 - - - - - - - - 3.66 24.94

(Kenya) Limited

- Alisha Torrent Closures (India) - - - - - - - - 4.29 0.00 - - 4.29 0.00

Private Limited

- Jai Beverages Private Limited - - - - - - - - (0.13) 1.05 - - (0.13) 1.05

- Devyani Food Industries Limited - - 12.07 4.95 - - - - - - - - 12.07 4.95

- Varun Food and Beverages - - (45.84) (48.85) - - - - - - - - (45.84) (48.85)

Zambia Limited

- SVS India Private Limited - - - (0.58) - - - - - - - - - (0.58)

- Cryoviva Biotech Private - - 5.88 4.78 - - - - - - - - 5.88 4.78

STATUTORY REPORTS

Limited

- IDVB Recycling Operations - - - - - (0.00) - - - - - - - (0.00)

Private Limited

- RJ Foundation - - - - 0.01 - - - - - - - 0.01 -

- Clean Max Tav Private Limited - - - - (0.00) (1.88) - - - - - - (0.00) (1.88)

- Huoban Energy 7 Private - - - - (2.27) (1.70) - - - - - - (2.27) (1.70)

Limited

Amounts below the rounding off norms adopted by the Group are presented as “0.00”.

Annual Report 2024

FINANCIAL STATEMENTS

309
Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
47. Disclosure on lease transactions pursuant to Ind AS 116 - Leases

The Group lease asset class primarily consists of leases for land, buildings, plant and equipments and vehicles.
With the exception of short-term leases, leases of low-value and cancellable long-term leases underlying assets,
each lease is reflected on the balance sheet as a right of use asset and a lease liability.
Lease liabilities are measured at the present value of the remaining lease payments, discounted using the weighted
average borrowing rate on the date of adoption ranging between 5.44% - 13.56% (31 December 2023: 5.44% -
13.56%).
Each lease generally imposes a restriction that, unless there is a contractual right for the Group to sublet the asset
to another party, the right of use asset can only be used by the Group. Leases are either non-cancellable or may
only be cancelled by incurring a substantive termination fee. Some leases contain an option to extend the lease for
a further term. The Group is prohibited from selling or pledging the underlying leased assets other than leasehold
lands as security against the Group’s other debts and liabilities.

i. Lease liabilities are presented in the balance sheet as under:

(` in million)
As at As at
31 December 2024 31 December 2023
Current maturities of lease liabilities (Refer note 21D) 1,049.03 390.38
Non-current lease liabilities (Refer note 21B) 3,570.86 1,978.85
Total 4,619.89 2,369.23

ii. The recognised right of use assets relate to land, buildings and plant and equipments as at 31 December 2024
and 31 December 2023:
(` in million)
As at As at
31 December 2024 31 December 2023
Right of use assets - land, buildings and plant and equipments
Balance at the beginning of the year 10,347.07 9,155.01
Acquired on business combination (Refer note 50(i)) 1,567.24 -
Additions for the year 2,497.75 1,623.33
Derecognition for the year - (2.43)
Rebate/grant related to asset received - (16.61)
Amortisation charge for the year (818.53) (359.51)
Foreign currency translation difference 37.69 (52.72)
Balance at the end of the year 13,631.22 10,347.07

iii. The following are amounts recognised in Consolidated Statement of Profit and Loss:
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Amortisation charge on right of use assets 818.53 359.51
Interest expense on lease liabilities* 402.65 179.04
Total 1,221.18 538.55

iv. Lease payments not recognised as a liability

The Group has elected not to recognise a lease liability for short term leases (leases with an expected term
of 12 months or less), non-cancellable long-term leases and for leases of low value assets. Payments made
under such leases are expensed on a straight-line basis. The expense relating to payments not included in the
measurement of the lease liability for short term leases is ` 1,616.21 (31 December 2023: ` 1,099.22 million).

v. Refer Consolidated Cash Flow Statement for total cash outflow for leases.

310 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
vi. Maturity of lease liabilities
Future minimum lease payments for year ended 31 December 2024 were as follows:
(` in million)
Lease payments Interest expense Net Present value*
Not later than 1 year 1,478.96 429.93 1,049.03
Later than 1 year not later than 5 years 3,367.35 1,123.85 2,243.50
Later than 5 years 2,984.76 1,657.40 1,327.36
Total 7,831.07 3,211.18 4,619.89

Future minimum lease payments for year ended 31 December 2023 were as follows:
(` in million)
Lease payments Interest expense Net Present value*
Not later than 1 year 554.90 169.21 390.38
Later than 1 year not later than 5 years 1,872.67 379.76 1,508.34
Later than 5 years 1,359.42 881.62 470.51
Total 3,786.99 1,430.59 2,369.23

* Includes exchange differences on translation of foreign operations of ` 12.83 million

48. Segment Reporting

The business activity of the Group predominantly fall within a single reportable business segment viz manufacturing
and sale of beverages. There are no separate reportable business segments. As part of reporting for geographical
segments, the Group operates in two principal geographical areas of the world, i.e., within India and other countries
(outside India). The aforesaid is in line with review of operating results by the chief operating decision maker. The
sale of products of the Group is seasonal.

The following table presents segment non-current assets, revenue from external customers regarding geographical
segments:
(` in million)
As at As at
31 December 2024 31 December 2023
Non-current assets*
- Within India 106,527.75 89,820.78
- Outside India 44,274.15 18,861.25
* excluding Investment in associates & joint venture, non-current financial assets and deferred tax asset(net).

(` in million)
As at As at
31 December 2024 31 December 2023
Revenue from operations
- Within India 141,755.87 125,763.47
- Outside India 63,057.41 37,447.16

Annual Report 2024 311

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
49. Dues to Micro and Small Enterprises
The dues to micro and small enterprises as required under the Micro, Small and Medium Enterprises Development
Act (“MSMED”), 2006 to the extent information available with the Holding Company and its one Indian subsidiary
is given below:
(` in million)
Particulars 31 December 2024 31 December 2023
The principal amount and the interest due thereon remaining unpaid
to any supplier as at the end of each accounting year
Principal amount due to micro and small enterprises 1,237.70 767.43
Interest due 6.56 4.83
The amount of interest paid by the buyer in terms of section 16 of the
MSMED Act, 2006 along with the amounts of the payment made to 949.98 522.67
the supplier beyond the appointed day during each accounting year*
The amount of interest due and payable for the period of delay in
making payment (which have been paid but beyond the appointed
14.82 8.67
day during the year) but without adding the interest specified under
the MSMED Act, 2006.
The amount of interest accrued and remaining unpaid at the end of
48.59 27.21
each accounting year
The amount of further interest remaining due and payable even
in the succeeding years, until such date when the interest dues as
above are actually paid to the small enterprise for the purpose of 48.59 27.21
disallowance as a deductible expenditure under section 23 of the
MSMED Act, 2006
*includes principal amounting to ` 949.98 million (31 December 2023: ` 522.67 million).

The above amounts includes due to micro and small enterprises included within other financial liabilities.

50. Investments/Acquisitions of Subsidiary

Investment/Acquisition of Subsidiary during the current year
i Business Combination- Bevco
(a) Summary of acquisition
 Pursuant to Share Purchase Agreement (“SPA”) and Shareholders Agreement (“SHA”) executed by
Varun Beverages Limited (“VBL” or “the Company”) with the existing Promoters and Shareholders
of The Beverage Company Proprietary Limited along with its wholly owned subsidiaries (hereinafter
referred as ”Bevco”), the Group had acquired 95% equity shareholding of Bevco amounting to ` 4,037.26
million from its shareholders upon fulfilment of terms and conditions as per SPA and SHA and the said
transaction had been completed on 26 March 2024. The remaining stake of 5% is held by ESOT (Trust).
Consequent to the above transaction, Bevco had become a subsidiary of VBL w.e.f. 26 March 2024.
Bevco is engaged in the business of manufacturing and distribution of licensed (PepsiCo Inc.) and own-
branded non-alcoholic beverages in South Africa. Bevco has franchise bottling rights from PepsiCo Inc.
for South Africa, Lesotho and Eswatini and distribution rights for Namibia, Botswana, Mozambique and
Madagascar.

(b) Accounting treatment

Said transaction has been accounted for using the acquisition method prescribed under Ind AS 103 – ‘Business
Combinations’, and accordingly, the identifiable assets (both tangible and intangible) acquired and liabilities
assumed are recorded on acquisition date at their fair values as determined by an independent valuer. Excess
of purchase consideration over the fair value of identified assets acquired, liabilities assumed and non-
controlling interest in the acquiree has been recognised as Goodwill.

312 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
(c) The fair values of identifiable assets acquired and liabilities assumed on acquisition are as follows:
(` in million)
Particulars Amount
A. Non-current assets
Property, plant and equipment 2,376.20
Capital work-in-progress 466.37
Right of use assets 1,567.24
Other Intangible assets 5,719.68
Other non-current assets 65.40 10,194.89
B. Non-current liabilities
Financial liabilities 3,263.57
Provisions 16.83
Deferred tax liabilities 314.33 3,594.73
C. Net working capital 4,680.56
D. Deferred tax liability on fair valuation and newly identified assets 359.23
Total liabilities (E=B+C+D) 8,634.52
Total net assets (F=A-E) 1,560.37
Goodwill (G) 2,689.38
Total Equity Value H=(F+G) 4,249.75
Non-controlling stake on acquisition date (I) 212.49
Purchase consideration (H-I) 4,037.26

The excess of the purchase price over the fair value of the acquired net assets was recorded as goodwill in
consolidated financial statements.

(d) Revenue and loss contribution

i. From the date of acquisition, acquired business contributed revenue from operations and loss after tax
of ` 15,763.29 million and ` 250.46 million respectively to the Group. If the acquisition had occured on 01
January 2024, revenue from operations for the Group would have been ` 209,536.36 million and since
the details on loss after tax is not readily available, such information has not been disclosed.

There are no transaction costs incurred in relation to this aquisition.

The goodwill is attributable to the operational synergies and expansion on market share.

Further, through the acquisition the Group intends to expand in other geographical areas with franchise
bottling rights from PepsiCo Inc. for South Africa, Lesotho and Eswatini and distribution rights for
Namibia, Botswana, Mozambique and Madagascar which is part of its expansion strategy.

ii he Holding Company on 16 December 2024, has acquired 39.93% shareholding in Lunarmech
T
Technologies Private Limited (LTPL) for a purchase consideration of ` 2,000 million. Post acquisition,
LTPL has become wholly-owned subsidiary of the Holding Company w.e.f. 16 December 2024.

iii During the year ended 31 December 2024, the Holding Company on 22 May 2024 has incorporated a
wholly owned subsidiary Varun Foods Zimbabwe (Private) Limited for a consideration of ` 0.84 million.
Further, on 15 July 2024 Varun Foods Zimbabwe (Private) Limited and Varun Beverages (Zambia)
Limited, subsidiaries of the Holding Company, had entered into exclusive agreements with Premier
Nutrition Trading LLC, Dubai (subsidiary of PepsiCo Inc.) to manufacture, distribute and selling of snacks
“Simba Munchiez” in the territory of Zimbabwe and Zambia. The expected date to start the commercial
production is on or before, 01 October 2025 for Varun Foods Zimbabwe (Private) Limited and 01 April
2026 for Varun Beverages (Zambia) Limited.

Annual Report 2024 313

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
iv 
On 13 November 2024, the Holding Company has entered into a binding agreement to acquire
100% stake in the business conducted by SBC Beverages Tanzania Limited, Tanzania (SBCT),
subject to approvals from PepsiCo Inc., Fair Competition Commission (FCC) Tanzania and other
regulatory approvals (if any) for a proposed purchase consideration amounting to USD 154.50
million. The indicative time period for completion of the acquisition is on or before 31 March 2025.
SBCT is engaged in the business of manufacturing and distribution of licensed (PepsiCo Inc.) branded non-
alcoholic beverages in Tanzania. SBCT has five manufacturing facilities located at one each in Dar-es-Salaam,
Mbeya, Arusha and two in Mwanza.

v On 13 November 2024, the Holding Company has entered into a binding agreement to acquire 100% stake in
the business conducted by SBC Beverages Ghana Limited, Ghana (SBCG), subject to approvals from PepsiCo
Inc. and other regulatory approvals (if any) for a proposed purchase consideration amounting to USD 15.06
million. The indicative time period for completion of the acquisition is on or before 28 February 2025.
SBCG is engaged in the business of manufacturing and distribution of licensed (PepsiCo Inc.) branded non-
alcoholic beverages in Ghana. SBCG has one manufacturing facility located at Accra, Ghana.”

Investment in Subsidiary during the previous year

vi On 23 May 2023, the Holding Company incorporated a new wholly-owned subsidiary company i.e. Varun
Beverages South Africa (Pty) Ltd in Johannesburg, South Africa by subscription of its 100% share capital for
a consideration of ` 0.05 million to explore the business of manufacturing and distribution of beverages.

vii On 16 October 2023, the Holding Company had acquired 50,000 equity shares of Lunarmech Technologies
Private Limited for a purchase consideration of ` 100 million. Post acquisition, the Holding Company is holding
60.07% of the effective equity share capital of Lunarmech Technologies Private Limited.

viii On 21 November 2023, incorporated a new subsidiary company i.e. VBL Mozambique,SA in Mozambique for
selling and distribution of beverages. The Group has subscribed its 100% share capital for a consideration of
` 1.33 million on 31 January 2024.

ix The Holding Company had subscribed 370,370 equity shares of Varun Beverages (Nepal) Private Limited
amounting to ` 625.00 million on 18 May 2023 and Varun Beverages (Nepal) Private Limited on 24 December
2023 allotted 551,130 equity shares as bonus shares of NPR 1,000 each to its existing shareholder.

51. 
The Holding Company follows calendar year as its financial year as approved by the Company Law Board,
New Delhi.

52. Share-based payments

a. Description of share based payment arrangements
i) Share Options Schemes (equity settled)
Employees Stock Option Scheme 2016 (“ESOS 2016 or scheme”)
The ESOS 2016 was approved by the Board of Directors and the shareholders on 27 April 2016 and further ratified
and amended by the shareholders in their meetings held on 17 April 2017 and 07 April 2022 respectively. Further,
National Stock Exchange of India Limited and BSE Limited have accorded their in principle approvals for issue
and allotment of upto 41,737,880 equity shares (“Ceiling Limit”). The scheme was formulated with the objective
to enable the Holding Company to grant Options for equity shares of the Holding Company to certain eligible
employees as defined in the Scheme at a pre-determined price.

314 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
The Options were granted on the dates as mentioned in the table below:
31 December 2024
Scheme Grant Date Number of Exercise Vesting Vesting Contractual
Options Granted Price Conditions Period period
ESOS 2016 05-Feb-24 7,500 453.60 Graded 05 Feb 2025 0-3.92 Years
vesting over to
4 years 01 Jan 2028
ESOS 2016 13-May-24 30,000 563.20 Graded 13 May 2024 0-3.67 Years
vesting over to
4 years 01 Jan 2028
ESOS 2016 16-Sep-24 6,250 626.00 Graded 16 Sep 2024 0-3.25 Years
vesting over to
4 years 01 Jan 2028
ESOS 2016 27-Sep-24 20,000 626.00 Graded 27 Sep 2024 0-3.25 Years
vesting over to
4 years 01 Jan 2028

31 December 2023
Scheme Grant Date Number of Exercise Vesting Vesting Contractual
Options Granted Price Conditions Period period
ESOS 2016 06-Feb-23 135,000 251.00 Graded 06 Feb 2023 0-3.92 Years
vesting over to
4 years 01 Jan 2027
ESOS 2016 02-May-23 30,000 257.20 Graded 02 May 2023 0-3.67 Years
vesting over to
4 years 01 Jan 2027
ESOS 2016 03-Aug-23 125,000 320.40 Graded 03 Aug 2023 0-3.42 Years
vesting over to
4 years 01 Jan 2027
ESOS 2016 06-Nov-23 65,000 359.60 Graded 06 Nov 2023 0-3.17 Years
vesting over to
4 years 01 Jan 2027
ESOS 2016 23-Nov-23 75,000 359.60 Graded 23 Nov 2023 0-3.09 Years
vesting over to
4 years 01 Jan 2027

b. Measurement of fair values

The fair values are measured based on the Black-Scholes-Merton model. The fair value of the options and
inputs used in the measurement of the grant date fair values of the equity-settled share based payments are
as follows:
31 December 2024
Particulars Options Options Options Options
granted on granted on granted on granted on
05 February 13 May 2024 16 September 27 September
2024 2024 2024
Fair value per Option at grant date (in `) 187.97 183.34 165.54 165.54
Share price at grant date (in `) 514.30 585.32 626.85 626.85
Exercise price (in `) 453.60 563.20 626.00 626.00
Expected volatility 34.20%- 31.26%-36.48% 30.39%- 30.39%-
37.95% 35.07% 35.07%
Expected life (in years) 1.57-4.47 1.57-4.20 1.57-3.83 1.57-3.83
Expected dividends 0.27% 0.17% 0.40% 0.40%
Risk-free interest rate 6.67%-6.75% 6.72%-6.76% 6.33%-6.37% 6.33%-6.37%

Annual Report 2024 315

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
31 December 2023
Particulars Options Options Options Options Options
granted on granted on granted on granted on granted on
06 February 02 May 2023 03 August 06 November 23 November
2023 2023 2023 2023
Fair value per Option at 68.80 105.55 97.43 116.17 139.01
grant date (in `)
Share price at grant date 230.98 289.04 323.24 380.74 412.54
(in `)
Exercise price (in `) 251.00 257.20 320.40 359.60 359.60
Expected volatility 38.03%-40.07% 37.33%-39.95% 36.65%-39.12% 35.77%-37.09% 35.71%-36.46%
Expected life (in years) 1.6-4.5 1.6-4.2 1.6-4.0 1.57-3.72 1.57-3.68
Expected dividends 0.22% 0.24% 0.43% 0.37% 0.34%
Risk-free interest rate 6.57%-6.91% 6.60%-6.69% 6.67%-6.80% 6.82%-6.96% 6.75%-6.89%

The risk-free interest rate (continuous compounding) being considered for the calculation is the interest rate
applicable for maturity equal to the expected life of the options on the date of grant of options based on the
zero-coupon yield curve for Government Securities available as on Valuation date taken from www.ccilindia.com.
The measure of volatility used in the Option-Pricing Model is the annualised standard deviation of the continuous
rates of return on the stock over a period of time.
c. Effect of employee stock option schemes on the consolidated statement of profit and loss
(` in million, unless otherwise stated)
Particulars 31 December 2024 31 December 2023
Employee stock option expense* 162.43 78.61

*included in employee benefits expense (refer note 33)

d. Reconciliation of outstanding share options
The number and weighted-average exercise prices of share options under the share option scheme is as follows:

As at 31 December 2024 As at 31 December 2023

Number of Weighted Number of Weighted
options average options average
exercise exercise
price (`) price (`)
Number of options granted, exercised and forfeited
Options outstanding as at the beginning of the year 3,083,035 159.82 3,054,875 159.82
Add: Options granted during the year 63,750 576.16 430,000 306.97
Less: Options exercised during the year 729,215 159.82 289,340 159.82
Less: Options forfeited/lapsed during the year 10,000 159.82 112,500 159.82
Options outstanding as at the end of the year 2,407,570 170.84 3,083,035 159.82
Options exercisable at the end of the year 563,877 159.82 180,750 159.82

As at As at
31 December 2024 31 December 2023
Weighted average remaining life of options outstanding at the end
1.75 2.70
of year (in years)
Also refer note 19(g) on sub-division/split of equity shares of the Holding Company during the year. The outstanding
stock options (whether vested or unvested as on the Record Date) and exercise prices as above has been adjusted
to ensure fair and reasonable adjustment to the entitlement of the Eligible Employees under the Schemes due to
the sub-division/split of equity shares.

316 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
53. Financial instruments risk
Financials risk management objectives and policies
The Group is exposed to various risks in relation to financial instruments. The main types of financial risks are
market risk, credit risk and liquidity risk.

The respective management of the Holding Company and other companies/entities comprising the Group
monitors and manages the financial risks relating to the operations of the respective entity/Holding Company
on a continuous basis. The Group’s risk management is coordinated at head office, in close cooperation with the
management of respective entity/Holding Company, and focuses on actively securing the short to medium-term
cash flows and simultaneously minimising the exposure to volatile financial markets. Long-term financial
investments are managed to generate lasting returns.

The Group does not engage in the trading of financial assets for speculative purposes. The most significant financial
risks to which the Group is exposed are described below.

53.1 Market risk analysis

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. The Group is exposed to market risk through its use of financial instruments and
specifically to foreign currency risk, interest rate risk and commodity price risk, which result from its operating,
investing and financing activities. Contracts to hedge exposures in foreign currencies, interest rates etc. are
entered into wherever considered necessary by the management.

Foreign currency risk


Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The functional currency of the Holding Company is Indian Rupees (‘INR’ or ‘`’).
Most of the transactions of the Holding Company and other entities/companies are carried out in the respective
local currency. Exposures to currency exchange rates mainly arise from the overseas operations and external
commercial borrowings etc., which are primarily denominated in US Dollar (“USD”), Euro (“EUR”), Pound Sterling
(“GBP”), Zuid-Afrikaanse Rand (“ZAR”), ZWG (Zimbabwe Gold) and Zimbabwe Dollar (“ZWL”).
To mitigate its exposure to foreign currency risk, the Group continuously monitors non-INR cash flows and hedging
contracts are entered into wherever considered necessary.
The carrying amounts of the Group’s foreign currency denominated monetary items are restated at the end of each
reporting period. Foreign currency denominated financial assets and liabilities which expose the Group to currency
risk are as follows:

(Amt. in million)
USD GBP EUR ZWL ZWG ZAR
31 December 2024
Financial assets
(i) Trade receivables 6.17 - - - 29.78 0.00
(ii) Others 4.18 - 0.41 - 0.00 0.01
(iii) Cash and cash equivalents 2.74 - 0.05 - 58.16 4.09
(iv) Other bank balances 0.57 - - - - -
Total financial assets 13.66 - 0.46 - 87.94 4.10
Financial liabilities
(i) Borrowings 42.28 - 1.12 - - -
(ii) Trade payables 21.59 0.00 0.89 - 10.28 0.42
(iii) Other financial liabilities 11.75 0.01 3.32 - - -
Total financial liabilities 75.62 0.01 5.33 - 10.28 0.42

Annual Report 2024 317

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
(Amt. in million)
USD GBP EUR ZWL ZWG ZAR
31 December 2023
Financial assets
(i) Trade receivables 0.78 - - 6,884.63 - 0.02
(ii) Others 6.43 - - - - -
(iii) Cash and cash equivalents 7.42 - - 10,016.19 - 0.79
(iv) Other bank balances 0.01 - - - - 0.00*
Total financial assets 14.64 - - 16,900.82 - 0.81
Financial liabilities
(i) Borrowings 7.89 - 2.76 - - -
(ii) Trade payables 15.98 0.00* 1.88 2,570.26 - 4.27
(iii) Other financial liabilities 3.46 - 9.63 196.19 - -
Total financial liabilities 27.33 0.00 14.27 2,766.45 - 4.27

*Rounded off to Nil.

There are no other exposure hedged against advance currency fluctuations.

The foreign currency sensitivity of profit and equity in regards to the Group’s financial assets and financial
liabilities considering ‘all other things being equal’ and ignoring the impact of taxation. It assumes a +/- 1%
change of the respective countries exchange rates (i.e. local currency to foreign currency) for the year ended at 31
December 2024 (31 December 2023: +/-1%). These are the sensitivity rates used when reporting foreign currency
exposures internally to the key management personnel and represents respective management’s assessment of
the reasonably possible changes in the foreign exchange rates. The sensitivity analysis includes only outstanding
foreign currency denominated monetary items at end of each period reported upon. A positive number indicates
an increase in profit or equity and vice-versa.

If the INR had strengthened against the USD by 1% (31 December 2023: 1%), GBP by 1% (31 December 2023: 1%),
ZWL by 1% (31 December 2023: 1%) EUR by 1% (31 December 2023: 1%), ZWG by 1% (31 December 2023: 1%) and
ZAR by 1% (31 December 2023: 1%), the following would have been the impact:

(` in million)
Profit/(Loss) for the year Equity
Particulars
31 December 2024 31 December 2023 31 December 2024 31 December 2023
USD 52.62 10.55 52.62 10.55
GBP 0.01 0.00 0.01 0.00
EUR 4.74 13.14 4.74 13.14
ZWL - (32.43) - (32.43)
ZAR (0.17) 0.16 (0.17) 0.16
ZWG (2.58) - (2.58) -

318 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
If the INR had weakened against the USD by 1% (31 December 2023: 1%), GBP by 1% (31 December 2023: 1%), ZWL
by 1% (31 December 2023: 1%) EUR by 1% (31 December 2023: 1%), ZWG by 1% (31 December 2023: Nil) and ZAR
by 1% (31 December 2023: 1%), the following would have been the impact:
(` in million)
Profit/(Loss) for the year Equity
Particulars
31 December 2024 31 December 2023 31 December 2024 31 December 2023
USD (52.62) (10.55) (52.62) (10.55)
GBP (0.01) (0.00) (0.01) (0.00)
EUR (4.74) (13.14) (4.74) (13.14)
ZWL - 32.43 - 32.43
ZAR 0.17 (0.16) 0.17 (0.16)
ZWG 2.58 - 2.58 -

Amounts below the rounding off norms adopted by the Group are presented as “0.00”.
Exposures to foreign exchange rates vary during the year depending on the volume of the overseas transactions.
Nonetheless, the analysis above is considered to be representative of the Group’s exposure to currency risk.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Group’s policy is to minimise interest rate cash flow risk exposures on
long-term financing. The Group is exposed to changes in market interest rates as some of the bank and other
borrowings are at variable interest rates.

The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest
rates of +/- 1% (31 December 2023: +/- 1%). These changes are considered to be reasonably possible based on
management’s assessment. The calculations are based on a change in the average market interest rate for each
period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All
other variables are held constant.

(` in million)
Profit/(Loss) for the year Equity
Particulars
+1% -1% +1% -1%
31 December 2024 (70.11) 70.11 (70.11) 70.11
31 December 2023 (396.00) 396.00 (396.00) 396.00

Commodity price risk

The Group is affected by the price volatility of certain commodities. Its operating activities require the ongoing
purchase of sugar and pet chips and therefore require a continuous supply. In view of volatility of price of sugar
and pet chips, the Group also executes into various advance purchase contracts.

Commodity price sensitivity

The following tables shows the effect of price change in sugar and pet chips
(` in million)
Particulars Change in yearly Effect on profit /(Loss) Effect on equity
31 December 2024
Sugar +/-1% (195.15) 195.15 (195.15) 195.15
Pet chips +/-1% (192.37) 192.37 (192.37) 192.37

31 December 2023
Sugar +/-1% (169.53) 169.53 (169.53) 169.53
Pet chips +/-1% (145.18) 145.18 (145.18) 145.18

Other price sensitivity

The Group is not exposed to any listed equity or listed debt price risk as it does not hold any investments in listed entities.

Annual Report 2024 319

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
53.2 Credit risk analysis

Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is operating
through a network of distributors and other distribution partners based at different locations. The Group is exposed
to this risk for various financial instruments, for example loans granted, receivables from customers, deposits
placed etc. The Group’s maximum exposure to credit risk is limited to the carrying amount of financial assets
recognised at end of each reporting period, as summarised below:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Classes of financial assets-carrying amounts:
Investments (non-current) 60.55 31.51
Loans (non-current) 218.87 -
Others non-current financial assets 987.26 622.67
Trade receivables 8,458.42 3,593.85
Cash and cash equivalents 22,662.83 2,422.12
Bank balances (other than those classified as cash and cash
1,837.71 2,176.50
equivalents above)
Others current financial assets 8,356.16 7,388.23
42,581.80 16,234.88

The Group continuously monitors receivables and defaults of customers and other counterparties, and incorporates
this information into its credit risk controls. Appropriate security deposits are kept against the supplies to customers
and balances are reconciled at regular intervals. The Group’s policy is to deal only with creditworthy counterparties.

In respect of trade and other receivables, the Group is not exposed to any significant credit risk exposure to any
single counterparty. Trade receivables consist of a large number of customers of various scales and in different
geographical areas. Based on historical information about customer default rates, management considers the
credit quality of trade receivables. In case the receivables are not recovered even after regular follow up, measures
are taken to stop further supplies to the concerned customer. The expected credit loss is based on the five years
historically observed default rates over the expected life of the trade receivables and is adjusted for forward
looking estimates. Further, the Group has assessed the recoverability of grants receivable classified under other
current financial assets and accordingly provided for balance overdue for more than three years, amounting to
` 236.45 million (31 December 2023: Nil).

Movement in expected credit loss allowance on trade receivables and capital advances:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Balance as at beginning of the year 586.23 538.87
Acquired on business combination 500.52 -
Loss allowance measured at lifetime expected credit loss 84.85 69.47
Reversal of allowance during the year (36.89) (2.31)
Foreign currency translation difference (57.20) (19.80)
Balance at the end of the year 1,077.51 586.23

The credit risk for cash and cash equivalents, bank deposits including interest accrued thereon and Government
grant receivables is considered negligible, since the counterparties are reputable banks with high quality external
credit ratings and State Government bodies.

In respect of financial guarantees provided by the Group, the maximum exposure to which the Group is exposed
to is the maximum amount which it would have to pay if the guarantee is called upon. Based on the expectation at
the end of each reporting period, the Group considers that it is more likely than not that such an amount will not
be payable under the guarantees provided.

320 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
53.3 Liquidity risk analysis
Liquidity risk is that the Group might be unable to meet its obligations. The Group manages its liquidity needs by
monitoring scheduled debt servicing payments for long-term financial liabilities and considering the maturity profiles
of financial assets and other financial liabilities as well as forecast of operational cash inflows and outflows. Liquidity
needs are monitored in various time bands, on a day-to-day basis, a week-to-week basis and a month-to-month
basis. Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash
requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls.

Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities
and the Group’s ability to avail further credit facilities subject to creation of requisite charge on its assets. The
Group assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

As at 31 December 2024, the Group’s non-derivative financial liabilities have contractual undiscounted maturities
as summarised below:

(` in million)
31 December 2024 Carrying 1 to 12 months 1 to 5 years Later than Total contractual
value 5 years cash flow
Borrowings (current and non-current) 23,642.65 15,247.96 8,250.35 275.29 23,773.60
Lease liabilities (current and
4,619.89 1,478.96 3,367.35 2,984.76 7,831.07
non-current)
Trade payables 15,604.27 15,604.27 - - 15,604.27
Other financial liabilities (current) 7,043.41 7,043.41 - - 7,043.41
Total 50,910.22 39,374.60 11,617.70 3,260.05 54,252.35

This compares to the maturity of the Group’s non-derivative financial liabilities in the previous reporting periods
as follows:
(` in million)
31 December 2023 Carrying 1 to 12 months 1 to 5 years Later than Total contractual
value 5 years cash flow
Borrowings (current and non-current) 51,943.87 20,069.19 31,452.89 580.82 52,102.91
Lease liabilities (current and
2,369.23 554.90 1,872.67 1,359.42 3,786.99
non-current)
Trade payables 7,582.48 7,582.48 - - 7,582.48
Other financial liabilities (current) 7,638.39 7,638.39 - - 7,638.39
Total 69,533.97 35,844.96 33,325.56 1,940.24 71,110.77

Annual Report 2024 321

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
54. Fair value measurements
Financial instruments by categories
The carrying values and fair values of financial instruments by categories are as follows:

(` in million)
31 December 2024 31 December 2023
Particulars FVTPL Amortised FVTPL Amortised
cost cost
Financial assets
(i) Non-current financial assets
(a) Investment 7 60.55 - 31.51 -
(b) Loans 8 - 218.87 - -
(c) Others financial assets 9 - 987.26 - 622.67
(ii) Current financial assets
(a) Trade receivables 13 - 8,458.42 - 3,593.85
(b) Cash and cash equivalents 14 1,319.21 21,343.62 - 2,422.12
(c) Bank balances other than above 15 - 1,837.71 - 2,176.50
(d) Others financial assets 16 - 8,356.16 - 7,388.23
Total 1,379.76 41,202.04 31.51 16,203.37
Financial liabilities
(i) Non-current borrowings 21A - 8,406.89 - 31,889.38
(ii) Non-current lease liabilities 21B - 3,570.86 - 1,978.85
(iii) Current financial liabilities
(a) Borrowings 21C - 15,235.76 - 20,054.49
(b) Lease liabilities 21D - 1,049.03 - 390.38
(c) Trade payables 24 - 15,604.27 - 7,582.48
(d) Others financial liabilities 25 - 7,043.41 - 7,638.39
Total - 50,910.22 - 69,533.97

Valuation technique to determine fair value

Cash and cash equivalents, other bank balances, trade receivables, other current financial assets, trade payables,
current borrowings and other current financial liabilities approximate their carrying amounts largely due to the
short-term maturities of these instruments. The fair value of the financial assets and liabilities is the amount at
which the instrument could be exchanged in a current transaction between willing parties, other than in a forced
or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

- The fair values of the long term borrowings, loans and other deferred payments are determined by using
discounted cash flow method using the appropriate discount rate. The discount rate is determined using
other similar instruments incorporating the risk associated.

322 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
Fair value hierarchy
The financial assets measured at fair value are grouped into the fair value hierarchy as on 31 December 2024 and
31 December 2023 as follows: (also refer note 3(a))
(` in million)
31 December 2024 Date of valuation Total Fair value measurement using
Quoted prices Significant Significant
in active observable unobservable
markets inputs (Level 2) inputs (Level 3)
(Level 1)
Assets measured at fair value:
Investment (non-current) 31 December 2024 60.55 - - 60.55
Cash and cash equivalents 31 December 2024 1,319.21 1,319.21 - -
There have been no transfers of financial assets and financial liabilities between the levels during the year 2024.
(` in million)
31 December 2023 Date of valuation Total Fair value measurement using
Quoted prices Significant Significant
in active markets observable unobservable
(Level 1) inputs inputs (Level 3)
(Level 2)
Assets measured at fair value:
Investment (non-current) 31 December 2023 31.51 - - 31.51
55. Capital management
For the purpose of the Group’s capital management, capital includes issued equity share capital, securities
premium and all other equity reserves attributable to the equity shareholders of the Group.
The Group’s capital management objectives are:
• to ensure the Group’s ability to continue as a going concern
• to provide an adequate return to shareholders
by pricing products and services commensurately with the level of risk.
The Group manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Group monitors capital
using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt,
non-current and current borrowings and lease liabilities, less cash and cash equivalents, excluding discontinued
operations, if any.
The amounts managed as capital by the Group for the reporting periods are summarised as follows:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Non-current borrowings (Refer note 21A) 8,406.89 31,889.38
Current borrowings (Refer note 21C) 15,235.76 20,054.49
Lease liabilities (Refer note 21B) 3,570.86 1,978.85
Current lease liabilities (Refer note 21D) 1,049.03 390.38
28,262.54 54,313.10
Less: Cash and cash equivalents (Refer note 14) (22,662.83) (2,422.12)
Net debt (A) 5,599.71 51,890.98
Equity share capital (Refer note 19) 6,763.02 6,496.07
Other equity (Refer note 20) 159,335.27 62,868.91
Total capital (B) 166,098.29 69,364.98
Capital and net debt (C=A+B) 171,698.00 121,255.96
Gearing ratio (A/C) 3.26% 42.79%

Annual Report 2024 323

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31
December 2024 and 31 December 2023.

There is no breaches in the financial covenants of the borrowing that would permit the banks to immediately call
loans and borrowings in the reporting periods.

56. Assets pledged as security

The carrying amount of assets pledged as security are:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Inventories and trade receivable 33,011.21 19,928.92
Other bank deposits 1,220.72 1,652.34
Other current financial assets 10,685.23 8,243.82
Other current assets 3,987.89 4,086.65
Other non current assets 0.09 42.23
Other intangible assets 6,494.05 5,450.94
Property, plant and equipment (including capital work-in-progress) 107,217.02 83,894.08
Right of use assets 7,116.13 6,400.64
Intangible assets under development 43.69 -
Cash and cash equivalent 117.32 129.20

57. Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules
2021 requiring companies covered under the Act, which uses accounting software for maintaining its books of
accounts, shall only use such accounting software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date when such
changes were made and ensuring that the audit trail cannot be disabled.

The group used certain software for maintenance of its books of account which have a feature of recording audit
trail (edit log) facility and the same have been operated throughout the year, except for instances mentioned
below including a instance of subsidiary where feature of recording audit trail (edit log) was not enabled for the
period 01 January 2024 to 31 March 2024.

a. One accounting software used for maintenance of books of accounts of the Holding Company and accounting
software used for maintenance of books of accounts by subsidiary company, did not have a feature of
recording audit trail (edit log) facility enabled at the database level to log any direct data changes;

b. 
One associate has used an accounting software for the period 01 January 2024 till 31 March 2024 for
maintaining books of account is operated by a third-party software service provider and audit trail (edit log)
facility was not enabled at the database level to log any direct data changes.

c. Reporting on compliance with audit trail requirements for accounting softwares used by two associates
for the period 01 April 2024 to 31 December 2024 is not available on account of different accounting years
adopted by these Companies.

324 Varun Beverages Limited

 Summary of material accounting policies and other explanatory information on theConsolidated
Financial Statements for the year ended 31 December 2024
58. Additional information, as required to Consolidated Financial Statements pursuant to Schedule III to the Companies Act, 2013
(` in million)
Name of the company/entity Net assets i.e., total assets Share of profit or loss Share in other Share in total
minus total liabilities comprehensive income comprehensive income
(OCI) (TCI)
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets* profit/ OCI* TCI*
(loss)*
For the year ended 31 December 2024
A. Parent Company
Varun Beverages Limited 90.66% 165,587.05 84.45% 23,203.64 103.11% 208.07 84.58% 23,411.71
B. Subsidiaries
Indian
Lunarmech Technologies Private Limited 1.12% 2,041.21 0.97% 267.85 -0.16% (0.33) 0.97% 267.52
Foreign
Varun Beverages (Nepal) Private Limited 1.48% 2,694.24 4.89% 1,344.96 0.00% - 4.86% 1,344.96
Varun Beverages Lanka (Private) Limited 1.43% 2,616.76 2.53% 694.53 6.46% 13.03 2.56% 707.56
(Consolidated)
CORPORATE OVERVIEW

Varun Beverages Morocco SA 1.77% 3,226.90 1.25% 342.56 0.00% - 1.24% 342.56
Varun Beverages (Zambia) Limited 0.15% 280.88 -0.70% (191.69) 0.00% - -0.69% (191.69)
Varun Beverages (Zimbabwe) (Private) Limited 3.91% 7,136.52 7.83% 2,150.32 0.00% - 7.77% 2,150.32
Varun Beverages RDC SAS -0.03% (50.51) 0.22% 61.66 0.00% - 0.22% 61.66
Varun Beverages International DMCC 0.50% 911.44 1.02% 280.27 0.00% - 1.01% 280.27
Varun Beverages South Africa (PTY) Limited 0.00% 0.03 0.00% (0.00) 0.00% - 0.00% (0.00)
VBL Mozambique, SA -0.01% (14.86) -0.06% (15.82) 0.00% - -0.06% (15.82)
The Beverages Company Proprietray Limited -0.26% (481.42) -0.91% (250.46) 0.00% - -0.90% (250.46)
(Consolidated)
STATUTORY REPORTS

Varun Foods Zimbabwe (Private) Limited 0.00% 0.86 0.00% - 0.00% - 0.00% -
Non-controlling interests in subsidiaries -0.72% (1,298.07) -1.44% (396.52) -9.41% (18.97) -1.51% (415.49)
C. Associate (Investment as per equity method)
Indian
Clean Max Tav Private Limited^ 0.00% - 0.00% (1.29) 0.00% - 0.00% (1.29)
Huoban Energy 7 Private Limited 0.00% - 0.00% (0.99) 0.00% - 0.00% (0.99)
D. Joint venture (Investment as per equity method)
Indian
IDVB Recycling Operations Private Limited^ 0.00% - -0.05% (12.50) 0.00% - -0.05% (12.50)

Annual Report 2024

100.00% 182,651.03 100.00% 27,476.52 100.00% 201.80 100.00% 27,678.32
Inter group eliminations/adjustments (16,552.74) (1,530.19) 356.42 (1,173.77)
FINANCIAL STATEMENTS

Total 166,098.29 25,946.33 558.22 26,504.55

325
 Summary of material accounting policies and other explanatory information on the Consolidated

326
Financial Statements for the year ended 31 December 2024

(` in million)
Name of the company/entity Net assets i.e., total assets Share of profit or loss Share in other Share in total
minus total liabilities comprehensive income comprehensive income
(OCI) (TCI)
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets* profit/ OCI* TCI*

Varun Beverages Limited

(loss)*
For the year ended 31 December 2023
A. Parent Company
Varun Beverages Limited 84.07% 70,758.02 84.17% 17,751.30 -874.44% (20.77) 84.06% 17,730.53
B. Subsidiaries
Indian
Lunarmech Technologies Private Limited 2.11% 1,773.69 1.93% 407.47 -10.54% (0.25) 1.93% 407.22
Foreign
Varun Beverages (Nepal) Private Limited 2.79% 2,346.21 3.33% 701.72 0.00% - 3.33% 701.72
Varun Beverages Lanka (Private) Limited 2.37% 1,992.19 1.91% 403.14 -6.93% (0.16) 1.91% 402.97
(Consolidated)
Varun Beverages Morocco SA 3.41% 2,868.04 2.12% 446.63 0.00% - 2.12% 446.63
Varun Beverages (Zambia) Limited 0.55% 459.59 -2.71% (571.56) 0.00% - -2.71% (571.56)
Varun Beverages (Zimbabwe) (Private) Limited 5.76% 4,851.54 10.05% 2,119.24 0.00% - 10.05% 2,119.24
Varun Beverages RDC SAS -0.03% (22.03) -0.01% (2.26) 0.00% - -0.01% (2.26)
Varun Beverages International DMCC 0.73% 617.76 1.42% 299.06 0.00% - 1.42% 299.06
Varun Beverages South Africa (PTY) Limited 0.00% 0.04 0.00% (0.01) 0.00% - 0.00% (0.01)
Non-controlling interests in subsidiaries -1.76% (1,481.55) -2.19% (458.91) 991.91% 23.56 -2.07% (435.35)
C. Associate (Investment as per equity method)
Indian
Clean Max Tav Private Limited^ 0.00% - 0.00% (0.21) 0.00% - 0.00% (0.21)
Huoban Energy 7 Private Limited 0.00% - -0.01% (1.51) 0.00% - -0.01% (1.51)
D. Joint venture (Investment as per equity method)
Indian
IDVB Recycling Operations Private Limited^ 0.00% - -0.01% (3.07) 0.00% - -0.01% (3.07)
100.00% 84,163.50 100.00% 21,091.03 100.00% 2.38 100.00% 21,093.41
Inter group eliminations/adjustments (14,798.52) (531.81) (58.83) (590.64)
Total 69,364.98 20,559.22 (56.45) 20,502.77

*Percentage has been determined before considering elimination/adjustments arising out of consolidation.
^ Refer note 6.
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
59. Summarised financial information for Associate and Joint Venture:
The Group has subscribed 50% ownership interest in IDVB Recycling Operations Private Limited (“IDVB”), a joint
venture, 26% ownership interest in Clean Max Tav Private Limited (“Clean Max”) and 26.34% ownership interest
in Huoban Energy 7 Private Limited (“Huoban”). The Holding Company’s interest in IDVB, Huoban and Clean Max
is accounted at cost using the equity method in these financial statements. Summarised financial information of
IDVB, Huoban and Clean Max, is set out below:

A. Principal place of business: India

B. Summarised balance sheet as on 31 December 2024:

(` in million)
Particulars IDVB Huoban Clean Max
Non-current assets 1,546.86 309.40 441.72
Current assets 78.16 33.90 39.78
Non-current liabilities (616.89) (276.55) (331.73)
Current liabilities (39.28) (23.75) (29.34)
Net assets 968.85 43.00 120.43
Group share of net assets 50.00% 26.34% 26.00%
Group's carrying amount of investment 484.43 11.33 31.31

C. Summarised statement of profit and loss

(` in million)
Particulars IDVB Huoban Clean Max
Revenue - 40.74 46.07
Other income 0.65 1.20 2.18
Total income 0.65 41.94 48.25
Finance costs 0.59 27.45 37.46
Depreciation and amortisation expense 1.96 12.58 10.58
Other expenses 23.10 5.40 6.18
Total expense 25.65 45.43 54.22
Loss before tax (25.00) (3.49) (5.97)
Tax expense - 0.29 (1.02)
Loss after tax (25.00) (3.78) (4.95)
Other comprehensive income - - -
Total comprehensive income (25.00) (3.78) (4.95)
Group's share in % 50.00% 26.34% 26.00%
Group's share in total comprehensive loss (12.50) (0.99) (1.29)
Loss recognised in the Consolidated Statement
(12.50) (0.99) (1.29)
of Profit and Loss

Annual Report 2024 327

Summary of material accounting policies and other explanatory
information on the Consolidated Financial Statements for the year
ended 31 December 2024
60. Disclosure relating to provision:
(` in million)
Particulars 31 December 2024 31 December 2023
Opening balance 503.72 -
Addition 41.16 503.72
Utilisation (250.76) -
Closing balance 294.12 503.72
 he Holding Company has made GST provision during the year 31 December 2023 towards tax rate difference based on the
T
demand order amounting to ` 120.08 million issued by Central GST Commissionerate, Jalandhar for the period 01 July 2017 to 30
September 2021 in the State of Punjab. Considering the demand order, Holding Company has provided for GST liability on entire
sales of a product for the said period. The Holding Company has not recovered the additional GST liability from its customers.
During the current year, the Holding Company has accrued interest on above GST provision and also reversed provisions that has
now become time-barred as at reporting date.
Notes:
i This provision represent estimates made mainly for probable claim arising out of dispute pending with
authority. The probability and the timing of the outflow with regard to the matter depend on the final outcome
of the dispute. Hence, the Holding Company is not able to reasonably ascertain the timing of the outflow.
ii Discounting obligation has not been considered as the dispute relates to Government Authority.

61. Additional regulatory information not disclosed elsewhere in the financial information during
current and previous year
a) The Holding Company and its Indian subsidiary does not have any Benami property and no proceedings have
been initiated or pending against the Group for holding any Benami property, under the Benami Transactions
(Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

b) The Holding Company and its Indian subsidiary does not have any transactions with struck off companies
under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956, except for the
parties mentioned below:
Name of the Nature of Balance Relationship with Balance Relationship
struck off transactions with outstanding as at the struck off outstanding as at with the struck
company struck off company 31 December 2024 company 31 December 2023 off company

Ace Polypet Sale of goods (0.00)* No relationship (0.00)* No

Private Limited relationship
C A Trade Links Security deposit (0.09) No relationship (0.09) No
Private Limited received relationship
Ngen Auto Purchases - No relationship 0.00* No
Private Limited relationship
Thermadyne Purchases (0.38) No relationship - No
Private Limited relationship

*Rounded off to Nil

c) The Group does not have any charges which is yet to be registered with ROC beyond the statutory period.
d) The Group has not traded or invested in Crypto currency or Virtual Currency.
e) The Group has not advanced or provided loan to or invested funds in any entity(ies) including foreign entities
(Intermediaries) or to any other person(s), with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Group (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

328 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Consolidated Financial Statements for the year
ended 31 December 2024
f) The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

g) The Group has not undertaken any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

h) The Holding Company and its Indian subsidiary has not been declared a ‘Wilful Defaulter’ by any bank (as
defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.

i) The Group has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017.

j) The borrowings obtained by the Group from banks have been applied for the purposes for which such loans
were taken.

k) The Group has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both.

l) The Holding Company has borrowings from banks on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Holding Company with banks are in agreement with the
books of accounts.

62. Subsequent events occurred after the balance sheet date:

i. The Board of Directors in their meeting held on 10 February 2025 have approved a payment of final dividend
of ` 0.50 (Rupee fifty paisa only) per equity share of the face value of ` 2 each, subject to the approval of
equity shareholders in ensuing annual general meeting of the Holding Company.

ii The Holding Company has invested in the equity shares of one of its subsidiaries named The Beverage
Company Proprietary Limited amounting to ` 4,128.04 million as on 02 January 2025.

63. The amounts of previous reported period have been regrouped/reclassified wherever considered necessary in
order to comply with financial reporting requirements.

The accompanying notes 1 to 63 are an integral part of the consolidated financial statements.
As per our report of even date attached.

For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649

Rajesh Chawla Ravi Batra

Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

Annual Report 2024 329

 Form AOC-1

330
(Pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act, 2013 read with Rule 5 of the Companies (Accounts) Rules, 2014)

Statement containing salient features of the financial statement of Subsidiaries/Associate companies/Joint venture
Part A: Subsidiaries
(` in million, except as stated otherwise)
S. 1 2 3 4 5 6 7 8 9 10 11 12
No
Particulars Varun Varun Varun Varun Varun Lunarmech Varun Varun Varun VBL Varun Foods The Beverage
Beverages Beverages Beverages Beverages Beverages Technologies Beverages Beverages Beverages Mozambique, Zimbabwe Company
(Nepal) Lanka Morocco SA (Zambia) (Zimbabwe) Private RDC SAS International South Africa SA@ (Private) Proprietary
Private (Private) Limited (Private) Limited DMCC (Pty) Limited^ Limited# Limited~*
Limited Limited* Limited

Varun Beverages Limited

Date of acquisition 01 January 01 January 01 January 01 January 01 January 04 31 December 31 January 23 May 2023 21 November 22 May 2024 26 March
2016 2016 November 2021 2022 2023 2024
2012 2012 2012
2019
Financial year ended 15 July 2024 31 December 31 December 31 December 31 December 31 March 31 December 31 December 31 December 31 December 31 December 31 December
2024 2024 2024 2024 2024 2024 2024 2024 2024 2024
2024
Reporting period for 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December
consolidation 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024
2024 2024
Reporting Currency NPR LKR MAD ZMW USD INR CDF AED ZAR MZN USD ZAR
Exchange rate on the 0.62441 0.29027 8.31371 3.06649 85.62320 1.00000 0.02956 23.29620 4.54272 1.32764 85.62320 4.54272
last day of financial year
Average exchange rate 0.62441 0.27589 8.32064 3.20470 83.67864 1.00000 0.02940 22.77720 4.61974 1.29800 83.67864 4.61974
during the financial year
1 Share Capital 907.31 2,896.82 6,215.07 843.71 0.07 9.95 0.74 20.68 0.05 1.34 0.84 3,740.39
2 Reserves and surplus 1,786.93 (280.07) (2,988.18) (562.83) 7,136.45 2,031.26 (51.25) 890.76 (0.01) (16.19) - (4,221.81)
3 Total Assets 5,579.68 3,270.36 11,659.56 2,443.82 11,539.28 2,906.75 11,028.88 7,890.47 0.03 8.51 0.89 17,448.28
4 Total Liabilities 2,885.44 653.67 8,411.48 2,170.94 4,402.75 865.54 10,977.15 6,975.67 - 23.37 0.03 17,929.69
5 Investments - - - - - - - - - - - -
6 Turnover 6,808.06 3,984.56 12,363.67 3,431.25 16,277.64 1,667.47 2,945.00 7,958.11 - 48.32 - 15,763.29
7 Profit/(Loss) before tax 1,521.81 746.53 362.12 (167.69) 2,116.71 357.02 54.23 297.04 (0.00) (15.82) - (239.35)
8 Provision for tax 176.85 119.30 31.62 - 30.85 89.17 - 30.86 - - - 43.93
9 Profit/(Loss) after tax 1,344.96 627.23 330.51 (167.69) 2,085.86 267.85 54.23 266.19 (0.00) (15.82) - (283.28)
10 Proposed Dividend 999.81 310.86 - - - - - - - - - -
11 % of shareholding 100.00% 100.00% 100.00% 90.00% 85.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 95.00%

* Consolidated figures
^Incorporated on 23 May 2023 and yet to commence operations as on reporting date.
@Incorporated on 21 November 2023.
#Incorporated on 22 May 2024 and yet to commence operations as on reporting date.
~Acquired on 26 March 2024.
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Part B: Associates and Joint venture

(` in million, except as stated otherwise)
S. Particulars IDVB Recycling Clean Max Tav Huoban Energy 7
No Operations Private Private Limited Private Limited
Limited*
Latest Audited Balance sheet date 31 December 2024 31 December 2024 31 December 2024
Date of acquisition 01 July 2022 23 November 2022 09 May 2023
Reporting Currency INR INR INR
1 Shares of Associate/Joint venture held by the Holding company on the year 5,00,00,000 21,030 12,47,943
end: (Number)
Amount of investment in Associate/joint venture 500.00 32.85 21.24
Total number of shares 10,00,00,000 80,881 47,38,129

Extent of holding % 50.00% 26.00% 26.34%

Description of how there is significant influence Joint Venture Associate Associate
2 Networth attributable to shareholding as per latest Balance Sheet 968.85 120.40 43.00
3 Loss for the year:
Considered in consolidation (12.50) (1.29) (0.99)
Not considered in consolidation (12.50) (3.66) (2.79)

* yet to commence commercial operations as on reporting date.

For and on behalf of the Board of Directors of

Varun Beverages Limited

Varun Jaipuria Raj Pal Gandhi

Whole Time Director Whole Time Director
DIN 02465412 DIN 00003649

Rajesh Chawla Ravi Batra

Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

Annual Report 2024 331

Independent Auditor’s Report

To the Members of Varun Beverages Limited Basis for Opinion

Report on the Audit of the Standalone Financial 3. We conducted our audit in accordance with the
Statements Standards on Auditing specified under section
143(10) of the Act. Our responsibilities under
Opinion those standards are further described in the
1. We have audited the accompanying standalone Auditor’s Responsibilities for the Audit of the
financial statements of Varun Beverages Limited standalone financial statements section of our
(‘the Company’), which comprise the Balance report. We are independent of the Company in
Sheet as at 31 December 2024, the Statement of accordance with the Code of Ethics issued by the
Profit and Loss (including Other Comprehensive Institute of Chartered Accountants of India (‘the
Income), the Statement of Cash Flow and the ICAI’) together with the ethical requirements
Statement of Changes in Equity for the year then that are relevant to our audit of the standalone
ended, and notes to the standalone financial financial statements under the provisions of the
statements, including a summary of the material Act and the rules thereunder, and we have fulfilled
accounting policies and other explanatory our other ethical responsibilities in accordance
information (hereinafter referred to as the with these requirements and the Code of Ethics.
“standalone financial statements”). We believe that the audit evidence obtained is
sufficient and appropriate to provide a basis for
2. In our opinion and to the best of our information our opinion.
and according to the explanations given to us, the
Key Audit Matters
aforesaid standalone financial statements give the
information required by the Companies Act, 2013 4. Key audit matters are those matters that, in our
(‘the Act’) in the manner so required and give a professional judgment, were of most significance
true and fair view in conformity with the Indian in our audit of the standalone financial statements
Accounting Standards (‘Ind AS’) specified under of the current period. These matters were
section 133 of the Act read with the Companies addressed in the context of our audit of the
(Indian Accounting Standards) Rules, 2015 and financial statements as a whole, and in forming
other accounting principles generally accepted in our opinion thereon, and we do not provide a
India, of the state of affairs of the Company as at separate opinion on these matters.
31 December 2024, and its profit (including other
5. We have determined the matters described below
comprehensive income), its cash flows and the
to be the key audit matters to be communicated
changes in equity for the year ended on that date.
in our report.

Key audit matter How our audit addressed the key audit matter
Impairment assessment of intangible assets Our audit procedures included, but were not limited, to the
including goodwill following:

Refer note 3.5 and 3.11 for accounting policies on • 

Obtained an understanding of the management’s
Intangibles assets and Business combinations and process for identification of cash generating unit and
Goodwill respectively. Further refer note 5A and processes performed by the management for their
5B to the standalone financial statements. impairment testing;

The Company carries Goodwill and franchise • Assessed the process by which management prepared
rights/ trademarks as intangible assets having its cash flow forecasts and held discussions with
indefinite life amounting to INR 19.40 million and management to understand the assumptions used
INR 5,385.99 million respectively, that are required and estimates made by them for determining such
to be tested for impairment by the management projections;
on an annual basis in accordance with Ind AS 36,
Impairment of Assets.

332 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Key audit matter How our audit addressed the key audit matter
The aforesaid assessment of the impairment •  Tested the design and operating effectiveness
testing involves significant judgement around the of internal controls over such identification and
determination of the recoverable amounts, being impairment test procedures;
the higher of value in use and fair value less costs
• 
Assessed the appropriateness of the Company’s
of disposal. Recoverable amounts are based on
accounting policies, including those relating to
management’s view of the future cash flows and
recognition, measurement and impairment of
prospects of the business, the appropriate discount
intangibles by comparing with the applicable Ind AS;
rates and other industry specific risk factors.
• 
Reviewed the valuation report obtained by the
The key judgements in determining the recoverable management from an independent valuer for
amounts relates to the forecast of future cash Franchise rights and assessed the professional
flows based on strategy using macroeconomic competence, skills and objectivity for performing the
assumptions such as industry growth, inflation required valuations;
and expected growth in market share, capital
• 
Assessed the appropriateness of the significant
expenditure and working capital requirements,
assumptions as well as the Company’s valuation model
among others.
with the support of auditor’s valuation specialists, who
assess the reasonableness of assumptions used and
Changes in the management forecasts or
valuation methodology applied relating to discount
assumptions can impact the assessment of the
rate, risk premium, industry growth rate etc. This
discounted cash flows.
included a discussion of the expected development of
the business and results as well as of the underlying
Considering the materiality of the amounts
assumptions used with those responsible for the
involved and significant degree of judgement
planning process.
and subjectivity involved in the estimates and key
assumptions used in determining the forecasted •  Assessed the robustness of financial projections
cash flows used in the impairment evaluation, which prepared by the management by comparing
are dependent on current and future economic projections for previous financial years with actual
factors and trading conditions varying for different results realised and discussed significant deviations, if
economic and geographical territories, impairment any, with the management;
assessment of Goodwill and the Franchise rights/
• 
Tested mathematical accuracy of the projections
trademarks was determined as a key audit matter.
and performed a sensitivity analysis for reasonably
possible changes in the sales growth, discount rate
applied and the long-term growth rate; and

• 
Evaluated the adequacy and appropriateness of
disclosures made by the Company in the standalone
financial statements, as required by the applicable
provisions of the Act and Ind AS.
Claims, Appeals and Litigations – provisions and Our audit procedures included, but were not limited to, the
contingent liabilities following:
•  Assessed the appropriateness of the Company’s
(Refer note 40 to the standalone financial
accounting policies relating to provisions and
statements for the amounts of contingent liabilities)
contingent liabilities with the applicable accounting
The Company is involved in various direct, indirect standards;
tax and other claims, appeals and litigations
(hereafter, referred to as “Matters”) that are • Assessed the Company’s process and the underlying
pending with different statutory authorities controls for identification of the pending matters
and judicial courts. The management exercises and completeness for financial reporting and also for
significant judgement for determining the need monitoring of significant developments in relation to
for and the amount of provisions, for any liabilities, such pending matters;
arising from these matters.

Annual Report 2024 333

 Key audit matter How our audit addressed the key audit matter
This judgement is dependent on a number of •  Assessed the management’s assumptions and
significant assumptions and evaluations which estimates in respect of matters, including the liabilities
involves interpreting the various applicable rules, or provisions recognised or contingent liabilities
regulations, practices and considering precedents disclosed in the standalone financial statements. This
in the various jurisdictions including the opinions involved assessing the probability of an unfavorable
received from various legal counsels. outcome of a given proceeding and the reliability of
estimates of related amounts based on the various
This matter is considered as a key audit matter,
legal counsels’ opinions received by the Company;
in view of the uncertainty regarding the
outcome of these matters, the significance of the •  Recomputed the arithmetical accuracy of the
amounts involved and the subjectivity involved underlying calculations supporting the provisions
in management’s judgement as to whether any recorded from the supporting evidences including the
amount should be recognised as a provision or correspondence with various authorities;
be disclosed or not as a contingent liability in the
• 
Assessed the management’s conclusions through
standalone financial statements.
understanding relevant judicial precedents in similar
cases and the applicable rules and regulations and
through a discussion with Company’s legal department
and legal counsels appointed by the Company;

• 
Obtained legal opinions and confirmation on
completeness from the Company’s external legal
counsels, where appropriate;

• Engaged auditor’s experts to gain an understanding

of the current status of matters and changes
in the disputes, if any, through discussions with
the management and by reading external advice
received by the Company, where relevant, to validate
management’s conclusions; and

• 
Assessed the appropriateness of the Company’s
description of the accounting policy, disclosures
related to matters and whether these are adequately
presented in the standalone financial statements.

Information other than the Financial Statements In connection with our audit of the standalone
and Auditor’s Report thereon financial statements, our responsibility is to read the
6. The Company’s Board of Directors are responsible other information and, in doing so, consider whether
for the other information. The other information the other information is materially inconsistent
comprises the information included in the with the standalone financial statements or our
Management Discussion and Analysis, Report on knowledge obtained in the audit or otherwise
Corporate Governance and Director’s Report, but appears to be materially misstated. If, based on the
does not include the standalone financial statements
work we have performed, we conclude that there is a
and our auditor’s report thereon.
material misstatement of this other information, we
Our opinion on the standalone financial statements are required to report that fact. We have nothing to
does not cover the other information and we do not report in this regard.
express any form of assurance conclusion thereon.

334 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Responsibilities of Management and Those Charged an audit conducted in accordance with Standards on
with Governance for the Standalone Financial Auditing will always detect a material misstatement
Statements when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
7. The accompanying standalone financial statements the aggregate, they could reasonably be expected to
have been approved by the Company’s Board influence the economic decisions of users taken on
of Directors. The Company’s Board of Directors the basis of these standalone financial statements.
are responsible for the matters stated in section
134(5) of the Act with respect to the preparation 11.  s part of an audit in accordance with the Standards
A
and presentation of these standalone financial on Auditing, specified under section 143(10) of the
statements that give a true and fair view of the Act, we exercise professional judgment and maintain
financial position, financial performance including professional skepticism throughout the audit. We also:
other comprehensive income, changes in equity and
cash flows of the Company in accordance with the • 
Identify and assess the risks of material
Ind AS specified under section 133 of the Act and misstatement of the standalone financial
other accounting principles generally accepted in statements, whether due to fraud or error,
India. This responsibility also includes maintenance design and perform audit procedures responsive
of adequate accounting records in accordance to those risks, and obtain audit evidence that is
with the provisions of the Act for safeguarding of sufficient and appropriate to provide a basis for
the assets of the Company and for preventing and our opinion. The risk of not detecting a material
detecting frauds and other irregularities; selection misstatement resulting from fraud is higher
and application of appropriate accounting policies; than for one resulting from error, as fraud may
making judgments and estimates that are reasonable involve collusion, forgery, intentional omissions,
and prudent; and design, implementation and misrepresentations, or the override of internal
maintenance of adequate internal financial controls, control;
that were operating effectively for ensuring the
accuracy and completeness of the accounting • 
Obtain an understanding of internal control
records, relevant to the preparation and presentation relevant to the audit in order to design
of the financial statements that give a true and audit procedures that are appropriate in the
fair view and are free from material misstatement, circumstances. Under section 143(3) (i) of the
whether due to fraud or error. Act, we are also responsible for expressing our
opinion on whether the Company has adequate
8. In preparing the financial statements, the Board of internal financial controls with reference
Directors is responsible for assessing the Company’s to financial statements and the operating
ability to continue as a going concern, disclosing, as effectiveness of such controls;
applicable, matters related to going concern, and
using the going concern basis of accounting unless • 
Evaluate the appropriateness of accounting
the Board of Directors either intends to liquidate the policies used and the reasonableness of
Company or to cease operations, or has no realistic accounting estimates and related disclosures
alternative but to do so. made by the management;

9. 
The Board of Directors is also responsible for • Conclude on the appropriateness of the Board
overseeing the Company’s financial reporting of Directors’ use of the going concern basis of
process. accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
Auditor’s Responsibilities for the Audit of the related to events or conditions that may cast
Standalone Financial Statements significant doubt on the Company’s ability to
10. Our objectives are to obtain reasonable assurance continue as a going concern. If we conclude that
about whether the standalone financial statements as a material uncertainty exists, we are required
a whole are free from material misstatement, whether to draw attention in our auditor’s report to the
due to fraud or error, and to issue an auditor’s report related disclosures in the standalone financial
that includes our opinion. Reasonable assurance is a statements or, if such disclosures are inadequate,
high level of assurance, but is not a guarantee that to modify our opinion. Our conclusions are

Annual Report 2024 335

 based on the audit evidence obtained up to the Order, to the extent applicable.
date of our auditor’s report. However, future
events or conditions may cause the Company 17. Further to our comments in Annexure I, as required
to cease to continue as a going concern. by section 143(3) of the Act based on our audit, we
report, to the extent applicable, that:
• 
Evaluate the overall presentation, structure
a) We have sought and obtained all the information
and content of the financial statements,
and explanations which to the best of our
including the disclosures, and whether the
knowledge and belief were necessary for the
financial statements represent the underlying
purpose of our audit of the accompanying
transactions and events in a manner that
standalone financial statements;
achieves fair presentation.
b) 
in our opinion, proper books of account as
12. 
We communicate with those charged with required by law have been kept by the Company
governance regarding, among other matters, the so far as it appears from our examination of
planned scope and timing of the audit and significant those books, except for the matters stated
audit findings, including any significant deficiencies
in paragraph 17(h)(vi) below on reporting
in internal control that we identify during our audit.
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended)}.
13. We also provide those charged with governance with
a statement that we have complied with relevant c) The standalone financial statements dealt with
ethical requirements regarding independence, and by this report are in agreement with the books
to communicate with them all relationships and of account;
other matters that may reasonably be thought to
bear on our independence, and where applicable, d) in our opinion, the aforesaid standalone financial
related safeguards. statements comply with Ind AS specified under
section 133 of the Act;
14. From the matters communicated with those charged
e) 
On the basis of the written representations
with governance, we determine those matters that
were of most significance in the audit of the financial received from the directors and taken on record
statements of the current period and are therefore by the Board of Directors, none of the directors
the key audit matters. We describe these matters is disqualified as on 31 December 2024 from
in our auditor’s report unless law or regulation being appointed as a director in terms of section
precludes public disclosure about the matter or 164(2) of the Act;
when, in extremely rare circumstances, we determine f) 
The modification relating to the maintenance
that a matter should not be communicated in our
of accounts and other matters connected
report because the adverse consequences of doing
therewith are as stated in paragraph 17(b) above
so would reasonably be expected to outweigh the
on reporting under section 143(3)(b) of the Act
public interest benefits of such communication.
and paragraph 17(h)(vi) below on reporting
Report on Other Legal and Regulatory under Rule 11(g) of the Companies (Audit and
Requirements Auditors) Rules, 2014 (as amended);

15.  s required by section 197(16) of the Act based on

A g) 
With respect to the adequacy of the internal
our audit, we report that the Company has paid financial controls with reference to financial
remuneration to its directors during the year in statements of the Company as on 31 December
accordance with the provisions of and limits laid down 2024 and the operating effectiveness of
under section 197 read with Schedule V to the Act. such controls, refer to our separate Report
in Annexure II wherein we have expressed an
16. 
As required by the Companies (Auditor’s Report)
unmodified opinion; and
Order, 2020 (‘the Order’) issued by the Central
Government of India in terms of section 143(11) of h) With respect to the other matters to be included
the Act, we give in the Annexure I, a statement on in the Auditor’s Report in accordance with Rule
the matters specified in paragraphs 3 and 4 of the 11 of the Companies (Audit and Auditors) Rules,

336 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

2014 (as amended), in our opinion and to the or invest in other persons or entities
best of our information and according to the identified in any manner whatsoever
explanations given to us: by or on behalf of the Funding Party
(‘Ultimate Beneficiaries’) or provide any
i. The Company, as detailed in note 40 to guarantee, security or the like on behalf
the standalone financial statements, has of the Ultimate Beneficiaries; and
disclosed the impact of pending litigations
on its financial position as at 31 December c. 
Based on such audit procedures
2024; performed as considered reasonable
and appropriate in the circumstances,
ii. The Company did not have any long-term nothing has come to our notice that
contracts including derivative contracts for has caused us to believe that the
which there were any material foreseeable management representations under
losses as at 31 December 2024. sub-clauses (a) and (b) above contain
iii. 
There has been no delay in transferring any material misstatement.
amounts, required to be transferred, to the v. 
The interim dividend declared and paid
Investor Education and Protection Fund by the Company during the year ended 31
by the Company during the year ended 31 December 2024 and until the date of this
December 2024; and audit report is in compliance with section
123 of the Act.
iv. a. 
The management has represented
that, to the best of its knowledge and The final dividend paid by the Company
belief, as disclosed in note 57(e) to during the year ended 31 December 2024
the standalone financial statements, in respect of such dividend declared for the
no funds have been advanced or previous year is in accordance with section
loaned or invested (either from 123 of the Act to the extent it applies to
borrowed funds or securities premium payment of dividend.
or any other sources or kind of
As stated in note 61(i) to the accompanying
funds) by the Company to or in any
standalone financial statements, the
person(s) or entity(ies), including
Board of Directors of the Company have
foreign entities (‘the intermediaries’),
proposed final dividend for the year ended
with the understanding, whether
31 December 2024 which is subject to the
recorded in writing or otherwise, approval of the members at the ensuing
that the intermediary shall, whether, Annual General Meeting. The dividend
directly or indirectly lend or invest in declared is in accordance with section
other persons or entities identified 123 of the Act to the extent it applies to
in any manner whatsoever by or declaration of dividend.
on behalf of the Company (‘the
Ultimate Beneficiaries’) or provide vi. Based on our examination which included
any guarantee, security or the like on test checks, the Company, in respect of
behalf the Ultimate Beneficiaries; financial year commencing on 01 January
2024, has used two accounting software
b. The management has represented that, for maintaining its books of account
to the best of its knowledge and belief, as which have a feature of recording audit
disclosed in note 57(f) to the standalone trail (edit log) facility and the same have
financial statements, no funds have been been operated throughout the year for
received by the Company from any all relevant transactions recorded in the
person(s) or entity(ies), including foreign software. However, the audit trail feature
entities (‘the Funding Parties’), with the was not enabled at database level for one
understanding, whether recorded in accounting software to log any direct data
writing or otherwise, that the Company changes, as described in note 60 to the
shall, whether directly or indirectly, lend standalone financial statements.

Annual Report 2024 337

 Further, during the course of our audit we Company for the financial year commencing
did not come across any instance of audit on 01 January 2024, reporting under Rule
trail feature being tampered with in respect 11(g) of Companies (Audit and Auditors)
of these accounting software Rules, 2014 on preservation of audit trail as
per the statutory requirements for record
As proviso to Rule 3(1) of the Companies retention is not applicable for the financial
(Accounts) Rules, 2014 applies to the year ended December 31, 2024.

For J C Bhalla & Co For O P Bagla & Co LLP

Chartered Accountants Chartered Accountants
Firm’s Registration No. 001111N Firm’s Registration No: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal

Partner Partner
Membership No: 505002 Membership No. 094155
UDIN: 25505002BMIKXH2112 UDIN: 25094155BMKSDP4102

Place: Gurugram Place: Gurugram

Date: 10 February 2025 Date: 10 February 2025

B-5, Sector-6, Noida B-225, 5th Floor, Okhla Industrial Area,

Uttar Pradesh 201301 Phase 1, New Delhi 110020

338 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure I referred to in Paragraph 17 of the Independent Auditor’s Report of

even date to the members of Varun Beverages Limited on the standalone financial
statements for the year ended 31 December 2024

In terms of the information and explanations sought by us of refrigerators (Visi coolers) under which
and given by the Company and the books of account and such assets are verified in a phased manner
records examined by us in the normal course of audit, and over a period of three years and no material
to the best of our knowledge and belief, we report that: discrepancies were noticed on such verification.
According to the information and explanations
(i) (a) (A) 
The Company has maintained proper
given to us, the existence of containers lying
records showing full particulars, including
with third parties is considered on the basis
quantitative details and situation of
of the confirmations obtained from such
property, plant and equipment, capital
third parties. In our opinion, the frequency of
work-in-progress and relevant details of
physical verification programme adopted by the
right-of-use assets.
Company, is reasonable having regard to the
(B) 
The Company has maintained proper size of the Company and the nature of its assets.
records showing full particulars of intangible
(c) The title deeds of all the immovable properties
assets including intangible assets under
held by the Company (other than properties
development.
where the Company is the lessee and the lease
(b) The property, plant and equipment (other than agreements are duly executed in favour of the
refrigerators (Visi coolers) and containers lying lessee), disclosed in Note 4A to the standalone
with third parties) and right-of-use assets have financial statements, are held in the name of the
been physically verified by the management Company. For properties where the Company
during the year and no material discrepancies is a lessee and the lease agreements are duly
were noticed on such verification. The Company executed in favour of the lessee except in
has a regular programme of physical verification following case:

Description of Gross Net Whether title deed holder Date Reasons

property carrying carrying is a Promoter, director since the
value value or relative of promoter/ property
(` million) (` million) director or employee is held

Land situated at 371.34 367.52 No 21 The Company has received

Buxar, Bihar December the possession letter dated
2023 21 December 2023 of land
situated at Buxar, Bihar and
is in the process of getting
lease deed registered in its
name.

Land situated at, 1.50 1.41 No 01 The Company has executed

Kolkata, West Bengal October the lease agreement for
2018 Kolkata, West Bengal land,
which is yet to be registered.

 e have directly obtained the confirmation from the

W (d) 
The Company has not revalued its property,
trust for title deeds of immovable properties, which plant and equipment (including right-of-use
are in the nature of land, having gross carrying value assets) or intangible assets during the year.
of 13,384.39 million as at 31 December 2024. The
(e) 
No proceedings have been initiated or are
title deeds of such immovable properties have been
pending against the Company for holding
mortgaged as security for loans or borrowings taken
any benami property under the Prohibition of
by the Company.
Benami Property Transactions Act, 1988 (as
amended) and rules made thereunder.

Annual Report 2024 339

(ii) (a) 
The management has conducted physical statements, in respect of the working capital limits
verification of inventory at reasonable intervals have been filed by the Company with such banks
during the year, except for goods-in-transit. In or financial institutions and such statements are
our opinion, the coverage and procedure of such in agreement with the books of account of the
verification by the management is appropriate Company for the respective periods, which were
and no discrepancies of 10% or more in the subject to audit/review.
aggregate for each class of inventory were noticed
as compared to book records. (iii) (a) The Company has not provided security or granted
any loans or advances in the nature of loans,
(b) 
As disclosed in Note 19A to the standalone secured or unsecured to companies, firms, Limited
financial statements, the Company has been Liability Partnerships (LLPs) or any other parties
sanctioned a working capital limit in excess of Rs. during the year. The Company has provided loans
50 million by banks or financial institutions based or guarantee, to Subsidiaries during the year as
on the security of current assets. The quarterly per details given below:

Particulars Guarantees Loans

(` million) (` million)
Aggregate amount provided/granted during the year 12,075.07 7,994.24
Balance outstanding as at balance sheet date 15,776.40 15,403.40

Further, the Company has made investment in 6 (iv) 

In our opinion, and according to the information
entities amounting to ` 6,438.39 million (year-end and explanations given to us, the Company has
balance ` 20,922.18 million). complied with the provisions of section 186 of the
Act in respect of loans and investments made and
(b) In our opinion, and according to the information
guarantees provided by it, as applicable. Further,
and explanations given to us, the investments
the Company has not entered into any transaction
made, guarantees provided and terms and
covered under section 185 and section 186 of the Act
conditions of the grant of all loans and guarantees
in respect of security provided by it.
provided are, prima facie, not prejudicial to the
interest of the Company. Further the Company
(v) 
In our opinion, and according to the information
has not provided any advances in the nature of
and explanations given to us, the Company has not
loans or given any security.
accepted any deposits or there are no amounts
(c) 
In respect of loans granted by the Company, which have been deemed to be deposits within the
the schedule of repayment of principal and meaning of sections 73 to 76 of the Act and the
payment of interest has been stipulated and the Companies (Acceptance of Deposits) Rules, 2014 (as
repayments/receipts of principal and interest amended). Accordingly, reporting under clause 3(v)
are regular. of the Order is not applicable to the Company.
(d) There is no overdue amount in respect of loans
(vi) The Central Government has specified maintenance
granted by the Company.
of cost records under sub-section (1) of section
(e) 
The Company has not granted any loan or 148 of the Act in respect of the products of the
advance in the nature of loan which has fallen Company. We have broadly reviewed the books of
due during the year. Further, no fresh loans account maintained by the Company pursuant to
were granted to any party to settle the overdue the rules made by the Central Government for the
loans/advances in nature of loan that existed as maintenance of cost records and are of the opinion
at the beginning of the year. that, prima facie, the prescribed accounts and
(f) 
The Company has not granted any loans or records have been made and maintained. However,
advances in the nature of loans, which are we have not made a detailed examination of the cost
repayable on demand or without specifying any records with a view to determine whether they are
terms or period of repayment. accurate or complete.

340 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(vii) (a) In our opinion and according to the information have generally been regularly deposited with
and explanations given to us, undisputed the appropriate authorities by the Company,
statutory dues including goods and services though there have been slight delays in a few
tax, provident fund, employees’ state insurance, cases. Further, no undisputed amounts payable
income-tax, sales-tax, service tax, duty of in respect thereof were outstanding at the year-
customs, duty of excise, value added tax, cess end for a period of more than six months from
and other material statutory dues, as applicable, the date they became payable.

(b) According to the information and explanations given to us, we report that there are no statutory dues referred
in sub-clause (a) which have not been deposited with the appropriate authorities on account of any dispute
except for the following:

Name of the statute Nature of Gross Amount paid Period to which Forum where dispute is pending
dues Amount under protest the amount
(` million) (` million) relates
Central Excise Act, 1944 Central 11.89 0.89 April 2012 to CESTAT, New Delhi
excise December 2015

Central Excise Act, 1944 Central 11.39 - March 2011 to Honourable Rajasthan High Court,
excise March 2013 Jaipur

Central Excise Act, 1944 Central 0.16 - March 2015 to Joint Commissioner, Panchkula
excise October 2015

Central Excise Act, 1944 Central 0.58 - March 2015 to CESTAT, Chandigarh
excise January 2016

Central Excise Act, 1944 Central 13.69 0.68 April 2014 to Office of the Commissioner of
excise February 2015 Central Tax, Panchkula

Central Excise Act, 1944 Central 0.11 - February 2016 to Office of the Commissioner of
excise March 2017 Central Excise, Sonipat

Central Excise Act, 1944 Central 0.26 - April 2017 to Office of the Commissioner of
excise June 2018 Central Excise, Sonipat

The Custom Act, 1962 Custom Act 90.75 3.41 January 2017 to CESTAT Mumbai
December 2018

The Custom Act, 1962 Custom Act 117.06 2.32 January 2022 to CESTAT Mumbai
December 2023

The Rajasthan Goods and GST 0.10 0.10 Dec-20 Assistant Commissioner, Jaipur
Services Tax Act, 2017

The Rajasthan Goods and GST 18.02 0.87 July 2017 to Joint Commissioner, Rajasthan
Services Tax Act, 2017 March 2018

The Madhya Pradesh Goods GST 0.10 0.10 2019-2020 Additional Commissioner, Indore
& Services Tax Act, 2017

The Bihar Goods & Services GST 0.004 - 2022-2023 Additional Commissioner,
Tax Act, 2017 Darbhanga

The Bihar Goods & Services GST 0.10 0.10 2022-2023 Case remand back to the
Tax Act, 2017 Commissioner (Appeal)

The Chhattisgarh Goods & GST 8.89 - 2017-2018 Assistant Commissioner of State
Services Tax Act, 2017 Tax, Raipur

The Delhi Goods and GST 0.40 0.40 Mar-20 Additional Commissioner, Noida
Services Tax Act, 2017

The Delhi Goods and GST 10.63 - 2018-2019 Deputy Commissioner, Okhla, Delhi
Services Tax Act, 2017

The Uttar Pradesh Goods GST 0.98 0.25 2017-2021 Additional Commissioner,
and Services Tax Act, 2017 Ghaziabad

Annual Report 2024 341

Name of the statute Nature of Gross Amount paid Period to which Forum where dispute is pending
dues Amount under protest the amount
(` million) (` million) relates
The Uttar Pradesh Goods GST 0.51 0.37 2013-2024 Additional Commissioner,
and Services Tax Act, 2017 Ghaziabad

The Gujarat Goods and GST 0.48 0.48 March 2020 to Assistant Commissioner, Gujrat
Services Tax Act, 2017 April 2021

The Jharkhand Goods & GST 0.11 0.11 2021-2022 Additional Commissioner, Ranchi
Services Tax Act, 2017

The Rajasthan Goods and GST 0.30 0.30 2019-2020 Appellate Authority-I Commercial
Services Tax Act, 2017 Taxes Jaipur

The Kerala Goods and GST 0.38 0.38 2019-2022 Additional and Joint Commissioner,
Services Tax Act, 2017 Palakkad

The Karnataka Goods & GST 0.11 0.11 2020-2021 Additional Commissioner, Bengaluru
Services Tax Act, 2017

The Haryana Goods and GST 0.20 0.20 2019-2020 Assistant Commissioner, GST
Services Tax Act, 2017 Faridabad

The Haryana Goods and GST 0.21 0.21 2023-2024 Assistant Excise & Taxation Officer
Services Tax Act, 2017 Sonipat

The Haryana Goods and GST 0.64 0.64 01-09-2019 and Additional Commissioner, Panchkula
Services Tax Act, 2017 June 2020

The Haryana Goods and GST 142.68 - 01-04-2020 TO Additional Commissioner, Panchkula
Services Tax Act, 2017 31-03-2021

Punjab Goods and Services GST 120.87 12.08 Nov-22 Assistant Commissioner, GST
Tax Act, 2017 Jalandhar

Punjab Goods and Services GST 80.85 - FY 2019-20 TO Commissioner CBIC, Jalandhar,
Tax Act, 2017 FY 2022-23 Chandigarh

Punjab Goods and Services GST 0.03 0.03 2022-2023 Assistant Commissioner of State Tax
Tax Act, 2017 Mobile Wing Jalandhar

The Uttar Pradesh Goods GST 0.23 0.23 2024-2025 Assistant Commissioner
and Services Tax Act, 2017

The Telangana Goods and GST 10.57 0.06 2020-2021 and Commissioner of Central Tax,
Services Tax Act, 2017 2021-2022 Madhapur, Hyderabad

The Telangana Goods and GST 0.04 0.04 Dec-19 Assistant Commissioner, GST
Services Tax Act, 2017 Sangareddy

The Telangana Goods and GST 2.53 - 2019-2020 Assistant Commissioner, GST
Services Tax Act, 2017 Sangareddy

The Tamil Nadu Goods and GST 2.35 0.62 2019-2023 Joint Commissioner and
Services Tax Act, 2017 Superintendent

The Andra pradesh Goods GST 2.33 - 2019-20 Deputy Commissioner

and Services Tax Act, 2017

The Andra pradesh Goods GST 13.63 - 2020-21 Deputy Commissioner

and Services Tax Act, 2017

Odisha Goods and Services GST 0.18 0.18 2019-2020 Odisha High court
Tax. Act, 2017

Odisha Goods and Services GST 0.70 - 2020-21 Superintendent , Bhubaneshwar

Tax. Act, 2017 Range -1

The Uttarakhand Goods & GST 0.22 0.22 June 2023 and Additional Commissioner, Haldwani
Service Tax Act 2017. December 2023

The Uttarakhand Goods & GST 0.14 - May 2024 and Additional Commissioner, Haldwani
Service Tax Act 2017. December 2024

342 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Name of the statute Nature of Gross Amount paid Period to which Forum where dispute is pending
dues Amount under protest the amount
(` million) (` million) relates
The Assam Goods & GST 3.31 - Apr-20 to Mar-21 Additional Commissioner, Guwahati
Service Tax Act 2017.

The Assam Goods & GST 1.43 0.68 Apr-19 To May 20 Additional Commissioner, Guwahati
Service Tax Act 2017.

The Assam Goods & GST 5.35 - Apr-20 To March Additional Commissioner, Guwahati
Service Tax Act 2017. 21

Income-Tax Act, 1961 Income tax 39.00 - AY 2012-2013 Honourable High Court, New Delhi

Income-Tax Act, 1961 Income tax 24.20 - AY 2016-2017 Commissioner Income Tax
(Appeals), New Delhi

Income-Tax Act, 1961 Income tax 11.85 - AY 2017-2018 Commissioner Income Tax
(Appeals), New Delhi

Income-Tax Act, 1961 Income tax 24.97 - AY 2018-2019 Commissioner Income Tax
(Appeals), New Delhi

The Uttarakhand Value Value added 0.14 0.23 Apr-12 Commissioner (Appeals) Roorkee
Added Tax Act, 2005 tax

The Uttarakhand Value Value added 3.86 0.50 2015-2016 Honourable High court of
Added Tax Act, 2005 tax Uttarakhand

The Uttarakhand Value Value added 11.16 0.50 2016-2017 Honourable High court of
Added Tax Act, 2005 tax Uttarakhand

The Uttarakhand Value Value added 5.75 - 2017-2018 Deputy Commissioner of Sale Tax,
Added Tax Act, 2005 tax Roorkee

Rajasthan Value Added Tax Value added 582.46 16.75 2010-2015 Honourable Rajasthan High Court -
Act, 2003 tax Jaipur

Rajasthan Value Added Tax Value added 0.04 - 2009-2010, May Deputy Commissioner (Appeal),
Act, 2003 tax 2015 and June Jaipur
2016

The Uttar Pradesh Value Value added 0.10 0.10 2010-2011 Joint Commissioner, Kanpur
Added Tax Act, 2008 tax

West Bengal Value Added Value added 0.25 0.12 Jul'12 West Bengal, Tribunal
Tax Act, 2003 tax

Punjab Value Added Tax Value added 0.36 - 2015-2016 The Deputy Excise and Taxation
Act, 2005 tax Commissioner (Appeals) cum Joint
Director (Investigation), Mohali

Punjab Value Added Tax Value added 0.37 0.14 2016-2017 The Deputy Excise and Taxation
Act, 2005 tax Commissioner (Appeals) cum
Joint Director (Investigation), HQ
Bathinda

Punjab Value Added Tax Value added 0.25 0.03 2016-2017 The Deputy Excise and Taxation
Act, 2005 tax Commissioner (Appeals) cum Joint
Director (Enforcement), Jalandhar

The Uttar Pradesh Value Value added 1.52 0.11 2001-2002 Additional Commissioner (Appeals),
Added Tax Act, 2008 tax Ghaziabad

The Uttar Pradesh Value Value added 14.17 - 2007-2011 Additional Commissioner,
Added Tax Act, 2008 tax Ghaziabad

The Uttar Pradesh Value Value added 4.48 4.48 2011-2012 Tribunal Bench-1, Ghaziabad
Added Tax Act, 2008 tax

Goa Value Added Tax Act Value added 5.61 - 2017-2018 Additional Commissioner of
2005 tax Commercial taxes, Margao

Annual Report 2024 343

(viii) According to the information and explanations Company has complied with the requirements
given to us, we report that no transactions were of section 42 and section 62 of the Act and
surrendered or disclosed as income during the year the rules framed thereunder with respect to
in the tax assessments under the Income Tax Act, the same. Further, the amounts so raised were
1961 (43 of 1961) which have not been previously used for the purposes for which the funds
recorded in the books of accounts. were raised, though idle funds which were not
required for immediate utilisation have been
(ix) (a) In our opinion and according to the information invested in readily realisable liquid investments
and explanations given to us, the Company and kept in monitoring account.
has not defaulted in repayment of its loans
or borrowings or in the payment of interest (xi) (a) To the best of our knowledge and according to
thereon to any lender. the information and explanations given to us,
no fraud by the Company or no fraud on the
(b) A
 ccording to the information and explanations
Company has been noticed or reported during
given to us including representation received
the period covered by our audit.
from the management of the Company, and on
the basis of our audit procedures, we report that
(b) According to the information and explanations
the Company has not been declared a willful
given to us including the representation made
defaulter by any bank or financial institution or
to us by the management of the Company, no
government or any government authority.
report under sub-section 12 of section 143 of
(c) In our opinion and according to the information the Act has been filed by the auditors in Form
and explanations given to us, money raised by ADT-4 as prescribed under rule 13 of Companies
way of term loans were applied for the purposes (Audit and Auditors) Rules, 2014, with the
for which these were obtained. Central Government for the period covered by
our audit.
(d) In our opinion and according to the information
and explanations given to us, and on an overall (c) According to the information and explanations
examination of the financial statements of the given to us including the representation made
Company, funds raised by the Company on to us by the management of the Company, there
short term basis have, prima facie, not been are no whistle-blower complaints received by
utilised for long term purposes. the Company during the year.

(e) In our opinion and according to the information (xii) The Company is not a Nidhi Company and the Nidhi
and explanations given to us and on an overall Rules, 2014 are not applicable to it. Accordingly,
examination of the financial statements of the reporting under clause 3(xii) of the Order is not
Company, the Company has not taken any applicable to the Company.
funds from any entity or person on account of
or to meet the obligations of its subsidiaries, (xiii) In our opinion and according to the information and
associates or joint ventures. explanations given to us, all transactions entered
into by the Company with the related parties are
(f) In our opinion and according to the information in compliance with sections 177 and 188 of the Act,
and explanations given to us, the Company where applicable. Further, the details of such related
has not raised any loans during the year on the party transactions have been disclosed in the
pledge of securities held in its subsidiaries, joint standalone financial statements, as required under
ventures or associate companies. Indian Accounting Standard (Ind AS) 24, Related
Party Disclosures specified in Companies (Indian
(x) (a) 
The Company has not raised any money by
Accounting Standards) Rules 2015 as prescribed
way of initial public offer or further public offer
under section 133 of the Act.
(including debt instruments), during the year.
Accordingly, reporting under clause 3(x)(a) of
(xiv) (a) In our opinion and according to the information
the Order is not applicable to the Company.
and explanations given to us, the Company has
(b) During the year, the Company has made private an internal audit system which is commensurate
placement (Qualified institutions placement) with the size and nature of its business as
of shares. In our opinion and according to the required under the provisions of section 138 of
information and explanations given to us, the the Act.

344 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(b) We have considered the reports issued by the ageing and expected dates of realisation of financial
Internal Auditors of the Company till date for assets and payment of financial liabilities, other
the period under audit. information in the standalone financial statements,
our knowledge of the plans of the Board of Directors
(xv) According to the information and explanation given and management and based on our examination of
to us, the Company has not entered into any non-cash the evidence supporting the assumptions, nothing
transactions with its directors or persons connected
has come to our attention, which causes us to believe
with its directors and accordingly, reporting under
that any material uncertainty exists as on the date
clause 3(xv) of the Order with respect to compliance
of the audit report indicating that Company is not
with the provisions of section 192 of the Act are not
capable of meeting its liabilities existing at the date
applicable to the Company.
of balance sheet as and when they fall due within a
(xvi) T
 he Company is not required to be registered under period of one year from the balance sheet date. We,
section 45-IA of the Reserve Bank of India Act, however, state that this is not an assurance as to the
1934. Accordingly, reporting under clauses 3(xvi)(a), future viability of the company. We further state that
(b) and (c) of the Order are not applicable to the our reporting is based on the facts up to the date of
Company. the audit report and we neither give any guarantee
nor any assurance that all liabilities falling due within
(d) B
 ased on the information and explanations given a period of one year from the balance sheet date, will
to us and as represented by the management get discharged by the company as and when they
of the Company, the Group (as defined in fall due.
Core Investment Companies (Reserve Bank)
Directions, 2016) has only one CIC as part of the (xx) According to the information and explanations given
Group. to us, the Company does not have any unspent
amounts towards Corporate Social Responsibility in
(xvii) T
 he Company has not incurred any cash losses in
respect of any ongoing or other than ongoing project
the current financial year as well as the immediately
as at the end of the financial year. Accordingly,
preceding financial year.
reporting under clause 3(xx) of the Order is not
applicable to the Company.
(xviii) 
There has been no resignation of the statutory
auditors during the year. Accordingly, reporting
(xxi) 
The reporting under clause 3(xxi) of the Order is
under clause 3(xviii) of the Order is not applicable
not applicable in respect of audit of standalone
to the Company.
financial statements of the Company. Accordingly,
(xix) 
According to the information and explanations no comment has been included in respect of said
given to us and on the basis of the financial ratios, clause under this report.

For J C Bhalla & Co For O P Bagla & Co LLP

Chartered Accountants Chartered Accountants
Firm’s Registration No. 001111N Firm’s Registration No: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal

Partner Partner
Membership No: 505002 Membership No. 094155
UDIN: 25505002BMIKXH2112 UDIN: 25094155BMKSDP4102

Place: Gurugram Place: Gurugram

Date: 10 February 2025 Date: 10 February 2025

B-5, Sector-6, Noida B-225, 5th Floor, Okhla Industrial Area,

Uttar Pradesh 201301 Phase 1, New Delhi 110020

Annual Report 2024 345

Annexure II
Independent Auditor’s Report on the internal financial controls with reference to the standalone financial statements
under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

1. 
In conjunction with our audit of the standalone controls with reference to financial statements were
financial statements of Varun Beverages Limited (‘the established and maintained and if such controls
Company’) as at and for the year ended 31 December operated effectively in all material respects.
2024, we have audited the internal financial controls
with reference to financial statements of the 4. 
Our audit involves performing procedures to
Company as at that date. obtain audit evidence about the adequacy of the
internal financial controls with reference to financial
Responsibilities of Management and Those statements and their operating effectiveness. Our
Charged with Governance for Internal Financial audit of internal financial controls with reference
Controls to financial statements includes obtaining an
2. 
The Company’s Board of Directors is responsible understanding of such internal financial controls,
for establishing and maintaining internal financial assessing the risk that a material weakness exists,
controls based on the internal financial controls and testing and evaluating the design and operating
with reference to standalone financial statements effectiveness of internal control based on the
criteria established by the Company considering assessed risk. The procedures selected depend on
the essential components of internal control the auditor’s judgement, including the assessment
stated in the Guidance Note on Audit of Internal of the risks of material misstatement of the financial
Financial Controls over Financial Reporting (‘the statements, whether due to fraud or error.
Guidance Note’) issued by the Institute of Chartered
Accountants of India (‘ICAI’). These responsibilities 5. We believe that the audit evidence we have obtained
include the design, implementation and maintenance is sufficient and appropriate to provide a basis for
of adequate internal financial controls that were our audit opinion on the Company’s internal financial
operating effectively for ensuring the orderly controls with reference to financial statements.
and efficient conduct of the Company’s business,
including adherence to the Company’s policies, Meaning of Internal Financial Controls with
the safeguarding of its assets, the prevention and Reference to Financial Statements
detection of frauds and errors, the accuracy and
completeness of the accounting records, and the 6. A company’s internal financial controls with reference
timely preparation of reliable financial information, to financial statements is a process designed to
as required under the Act. provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial
Auditor’s Responsibility for the Audit of the statements for external purposes in accordance
Internal Financial Controls with Reference to with generally accepted accounting principles. A
Financial Statements company’s internal financial controls with reference
3. 
Our responsibility is to express an opinion on the to financial statements include those policies and
Company’s internal financial controls with reference procedures that (1) pertain to the maintenance of
to financial statements based on our audit. We records that, in reasonable detail, accurately and fairly
conducted our audit in accordance with the Standards reflect the transactions and dispositions of the assets
on Auditing issued by the Institute of Chartered of the company; (2) provide reasonable assurance
Accountants of India (‘ICAI’) prescribed under that transactions are recorded as necessary to permit
Section 143(10) of the Act, to the extent applicable preparation of financial statements in accordance
to an audit of internal financial controls with with generally accepted accounting principles, and
reference to financial statements, and the Guidance that receipts and expenditures of the company are
Note on Audit of Internal Financial Controls Over being made only in accordance with authorisations of
Financial Reporting (‘the Guidance Note’) issued by management and directors of the company; and (3)
the ICAI. Those Standards and the Guidance Note provide reasonable assurance regarding prevention
require that we comply with ethical requirements or timely detection of unauthorised acquisition, use,
and plan and perform the audit to obtain reasonable or disposition of the company’s assets that could
assurance about whether adequate internal financial have a material effect on the financial statements.

346 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Inherent Limitations of Internal Financial Opinion

Controls with Reference to Financial Statements 8. In our opinion, the Company has, in all material
7. 
Because of the inherent limitations of internal respects, adequate internal financial controls with
financial controls with reference to financial reference to financial statements and such controls
statements, including the possibility of collusion or were operating effectively as at 31 December
improper management override of controls, material 2024, based on the internal financial controls
misstatements due to error or fraud may occur and with reference to standalone financial statements
not be detected. Also, projections of any evaluation criteria established by the Company considering
of the internal financial controls with reference to the essential components of internal control
financial statements to future periods are subject stated in the Guidance Note issued by the ICAI.
to the risk that the internal financial controls with
reference to financial statements may become
inadequate because of changes in conditions, or
that the degree of compliance with the policies or
procedures may deteriorate.

For J C Bhalla & Co For O P Bagla & Co LLP

Chartered Accountants Chartered Accountants
Firm’s Registration No. 001111N Firm’s Registration No: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal

Partner Partner
Membership No: 505002 Membership No. 094155
UDIN: 25505002BMIKXH2112 UDIN: 25094155BMKSDP4102

Place: Gurugram Place: Gurugram

Date: 10 February 2025 Date: 10 February 2025

B-5, Sector-6, Noida B-225, 5th Floor, Okhla Industrial Area,

Uttar Pradesh 201301 Phase 1, New Delhi 110020

Annual Report 2024 347

Standalone Balance Sheet
As at 31 December 2024
(` in million)
Notes As at As at
31 December 2024 31 December 2023
Assets
Non-current assets
(a) Property, plant and equipment 4A 77,016.11 55,036.05
(b) Capital work-in-progress 4B 9,556.64 15,759.99
(c) Right of use assets 4C 9,315.41 8,875.89
(d) Goodwill 5A 19.40 19.40
(e) Other intangible assets 5B 5,460.04 5,450.74
(f) Intangible assets under development 5C 43.69 -
(g) Financial assets
(i) Investments 6 20,960.11 14,499.54
(ii) Loans 7 14,856.27 6,999.39
(iii) Other financial assets 8 802.09 564.85
(h) Other non-current assets 9 3,429.50 3,537.46
Total non-current assets 141,459.26 110,743.31
Current assets
(a) Inventories 10 16,887.05 15,358.74
(b) Financial assets
(i) Trade receivables 11 1,997.63 2,129.42
(ii) Cash and cash equivalents 12 20,580.80 494.80
(iii) Bank balances other than (ii) above 13 6.28 28.29
(iv) Loans 14 547.13 -
(v) Other financial assets 15 9,772.54 7,695.02
(c) Other current assets 16 3,589.05 3,645.00
Total current assets 53,380.48 29,351.27
Total assets 194,839.74 140,094.58
Equity and liabilities
Equity
(a) Equity share capital 17 6,763.02 6,496.07
(b) Other equity 18 158,824.03 64,261.97
Total equity 165,587.05 70,758.04
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 19A 1,442.10 30,105.49
(ia) Lease liabilities 19C 419.61 1,043.65
(b) Provisions 20 1,777.00 2,056.26
(c) Deferred tax liabilities (Net) 21 3,833.51 3,133.33
(d) Other non-current liabilities 22 47.31 68.40
Total non-current liabilities 7,519.53 36,407.13
Current liabilities
(a) Financial liabilities
(i) Borrowings 19B 6,873.31 17,495.56
(ia) Lease liabilities 19D 77.10 176.29
(ii) Trade payables
(a)  Total outstanding dues of micro enterprises and small enterprises 23 640.19 767.25
(b) Total outstanding dues of creditors other than micro 23 4,938.09 4,151.36
enterprises and small enterprises
(iii) Other financial liabilities 24 5,883.00 6,678.70
(b) Other current liabilities 25 2,171.10 2,508.88
(c) Provisions 20 647.94 815.70
(d) Current tax liabilities (Net) 26 502.43 335.67
Total current liabilities 21,733.16 32,929.41
Total liabilities 29,252.69 69,336.54
Total equity and liabilities 194,839.74 140,094.58
Material accounting policies 3
The accompanying notes 1 to 62 are an integral part of the standalone financial statements.
As per our report of even date attached.
For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091
Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649
Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

348 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Profit and Loss

For the year ended 31 December 2024
(` in million)
Notes Year ended Year ended
31 December 2024 31 December 2023
Income
Revenue from operations 27 143,486.00 126,328.26
Other income 28 3,539.35 1,461.42
Total income 147,025.35 127,789.68
Expenses
Cost of materials consumed 29 63,622.29 59,027.80
Purchases of stock-in-trade 30 2,029.08 1,494.34
Changes in inventories of finished goods, intermediate goods, stock-in-trade 31 388.40 (618.15)
and work-in-progress
Employee benefits expense 32 11,775.54 10,367.96
Finance costs 33 3,496.55 2,410.95
Depreciation and amortisation expense 34 6,179.06 5,183.28
Other expenses 35 28,835.04 26,241.87
Total expenses 116,325.96 104,108.05
Profit before tax 30,699.39 23,681.63
Tax expense
(a) Current tax 26 6,858.95 6,018.71
(b) Adjustment of tax relating to earlier years 26 6.64 (28.82)
(c) Deferred tax charge/(credit) 21 630.16 (59.52)
Total tax expense 7,495.75 5,930.37
Net profit for the year 23,203.64 17,751.26
Other comprehensive income 36
(a) Items that will not to be reclassified to Profit or Loss:
(i) Re-measurement gain/(loss) on defined benefit plans 278.06 (27.76)
(ii) Income tax relating to items that will not be reclassified to (69.98) 6.99
Profit or Loss
Total other comprehensive income 208.08 (20.77)
Total comprehensive income for the year 23,411.72 17,730.49
Earnings per equity share of face value of ` 2 each

Basic (`) 38 7.11 5.46

Diluted (`) 38 7.11 5.46
Material accounting policies 3

The accompanying notes 1 to 62 are an integral part of the standalone financial statements.
As per our report of even date attached.

For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649

Rajesh Chawla Ravi Batra

Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

Annual Report 2024 349

Standalone Statement of Cash Flow
For the year ended 31 December 2024

(Indirect Method) (` in million)

Year ended Year ended
31 December 2024 31 December 2023
A. Operating activities
Profit before tax 30,699.39 23,681.63
Adjustments to reconcile profit before tax to net cash flows:
Depreciation on property, plant and equipment 5,986.66 5,007.16
Amortisation of intangible assets and Right of use assets 192.40 176.12
Interest expense at amortised cost 3,496.55 2,410.95
Interest income at amortised cost (1,183.48) (512.24)
Dividend income from non-current investment in subsidiaries (1,315.99) (407.53)
Loss on disposal/written off of property, plant and equipment (Net) 761.81 764.10
Share based payments (Net) 140.25 63.35
Bad debts and advances written off 9.10 2.13
Excess provisions and liabilities written back (62.35) (291.84)
Gain on sale of current investments (22.47) (3.51)
Guarantee commission income (93.48) (28.87)
Unrealised foreign exchange fluctuation (425.29) (111.87)
Allowance for expected credit loss 3.10 -
Operating profit before working capital changes 38,186.20 30,749.58
Working capital adjustments:
Increase in inventories (1,528.30) (1,097.26)
Decrease/(Increase) in trade receivables 127.61 (625.21)
Increase in current and non-current financial assets and other current (914.90) (3,165.89)
and non-current assets
Increase/(Decrease) in current financial liabilities and other current 423.94 (24.23)
and non-current liabilities and provisions
Total cash from operations 36,294.55 25,836.99
Income tax paid (6,625.12) (6,308.22)
Net cash flows from operating activities (A) 29,669.43 19,528.77
B. Investing activities
Purchase of property, plant and equipment, right of use assets (23,833.06) (26,464.52)
and intangible assets (including adjustment on account of capital
work-in-progress, capital advances and capital creditors)
Proceeds from disposal of property, plant and equipment 154.65 563.20
Loan given to subsidiaries and joint venture (7,994.24) (1,993.40)
Investment made in subsidiaries, associates, joint venture and other (6,438.39) (930.61)
Proceeds from sale of current investments (Net) 22.47 3.51
Receipt of loan given to a subsidiary - 250.07
Change in other bank balances 22.88 (28.39)
Guarantee commission received 81.42 25.72
Interest received 430.55 366.23
Dividend income from non-current investment in subsidiaries 682.81 512.52
Net cash used in investing activities (B) (36,870.91) (27,695.67)

350 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Cash Flow

For the year ended 31 December 2024

(Indirect Method) (` in million)

Year ended Year ended
31 December 2024 31 December 2023
C. Financing activities
Proceeds from long term borrowings 10,929.58 22,689.10
Repayment of long term borrowings (48,171.60) (12,377.86)
(Repayments)/Proceeds of short-term borrowings (Net) (2,071.58) 2,582.05
Repayments of lease liabilities (1,015.91) (98.25)
Interest paid (inclusive of interest paid on lease liabilities ` 120.18 (3,642.51) (2,381.67)
(31 December 2023: ` 106.23))
Proceeds from issue of equity shares including share premium thereon 75,118.80 44.41
(QIP & ESOPs)
Share issue expenses (Refer note 59) (611.10) -
Proceeds from share application money pending allotment - 3.51
Dividend paid (3,248.20) (2,273.48)
Net cash generated from financing activities (C) 27,287.48 8,187.81
Net change in cash and cash equivalents (D=A+B+C) 20,086.00 20.91
Cash and cash equivalents at the beginning of year (E) 494.80 473.89
Cash and cash equivalents at the end of year (D+E) (Refer note 12) 20,580.80 494.80
Notes:
(a) Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing
activities, including both changes arising from cash flows and non-cash changes pursuant to Ind AS 7:
(` in million)
Non-current Current Lease Liabilities
borrowings* borrowings (Non-current and
current)
Balance as at 01 January 2024 39,846.05 7,755.00 1,219.94
Cash flows (Net) (37,242.02) (2,071.58) (1,015.91)
Non-cash changes:
Recognition of lease liabilities (net) - - 292.68
Impact of fair value changes 27.96 - -
Balance as at 31 December 2024 2,631.99 5,683.42 496.71

(` in million)
Non-current Current Lease Liabilities
borrowings* borrowings (Non-current and
current)
Balance as at 01 January 2023 29,545.55 5,172.95 1231.06
Cash flows (Net) 10,311.24 2,582.05 (98.25)
Non-cash changes:
Recognition of lease liabilities (net) - - 87.13
Impact of fair value changes (10.74) - -
Balance as at 31 December 2023 39,846.05 7,755.00 1,219.94
*includes current maturities of long-term debts amounting to ` 1,189.89 million (31 December 2023: ` 9,740.56 million). (Refer note 19A and 19B)
Refer Note 47 for amount spent during the financial year 31 December 2024 and 31 December 2023 relating to Corporate Social Responsibilities
activities.
The accompanying notes 1 to 62 are an integral part of the standalone financial statements.
As per our report of even date attached.
For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091
Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649
Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

Annual Report 2024 351

352
Standalone Statement of Changes in Equity
For the year ended 31 December 2024

A. Equity share capital

(` in million)
Particulars Notes Number of shares Amount
Balance as at 01 January 2023 649,549,620 6,495.50
Changes in equity share capital during the year 2023 649,665,356 0.57

Varun Beverages Limited

Balance as at 31 December 2023 17 1,299,214,976 6,496.07
Changes in equity share capital during the year 2024 2,082,295,041 266.95
Balance as at 31 December 2024 17 3,381,510,017 6,763.02

B. Other Equity

(` in million)
Reserve and surplus Share
Capital Share Securities General Retained application
Particulars Notes reserve option premium reserve earnings money Total
outstanding pending
allotment
account
Balance as at 01 January 2023 533.93 29.08 22,569.56 444.26 25,101.68 - 48,678.51
Profit for the year - - - - 17,751.26 - 17,751.26
Other comprehensive income for the year
Re-measurement gain on defined benefit plans
- - - - (20.77) - (20.77)
(Net of taxes)#
Dividend paid* (Refer note 39) - - - - (2,273.48) - (2,273.48)
Share application money pending allotment - - - - - 3.51 3.51
Recognition of share based payment expenses
- 79.10 - - - - 79.10
(Refer note 32)
Pursuant to exercise of employee stock options - (23.19) 67.03 - - - 43.84
Balance as at 31 December 2023 18 533.93 84.99 22,636.59 444.26 40,558.69 3.51 64,261.97
 Standalone Statement of Changes in Equity
For the year ended 31 December 2024

(` in million)
Reserve and surplus Share
Capital Share Securities General Retained application
Particulars Notes reserve option premium reserve earnings money Total
outstanding pending
allotment
account
Profit for the year - - - - 23,203.64 - 23,203.64
Other comprehensive income for the year
Re-measurement loss on defined benefit plans - - - - 208.08 - 208.08
(Net of taxes)#
Dividend paid* (Refer note 39) - - - - (3,248.55) - (3,248.55)
Equity share capital issued during the year pending - - - - - (3.51) (3.51)
previous year allotment
Recognition of share based payment expenses - 162.43 - - - 162.43
(Refer note 32)
Pursuant to exercise of employee stock options - (62.72) 183.56 - - - 120.84
CORPORATE OVERVIEW

Additions made on issue of equity share capital - - 74,734.51 - - - 74,734.51

pursuant to Qualified Institutions Placement (Refer
note 59)
Amount utilised for share issue expenses - - (615.38) - - - (615.38)
(Refer note 59)
Balance as at 31 December 2024 18 533.93 184.70 96,939.28 444.26 60,721.86 - 158,824.03
# The disaggregation of changes in OCI by each type of reserves in equity is disclosed in Note 37.
*Transaction with owners in their capacity as owners.
The accompanying notes 1 to 62 are an integral part of the standalone financial statements.
STATUTORY REPORTS

As per our report of even date attached

For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091

Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649

Annual Report 2024

Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
FINANCIAL STATEMENTS

353
Dated : 10 February 2025 Membership No. F- 5746
Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
1 Corporate information i. Derivative financial instruments;
Varun Beverages Limited (the “Company”) is a ii. Certain financial assets and liabilities measured at
public limited Company domiciled in India. Its fair value (refer accounting policy regarding financial
registered office is at F-2/7, Okhla Industrial Area, instruments);
Phase-I, New Delhi- 110 020. The Company’s equity iii. Defined benefit plans- plan assets measured at fair
shares are listed on Bombay Stock Exchange value; and
Limited (“BSE”) and National Stock Exchange of iv. Share based payments.
India (“NSE”). The Company was incorporated on
The Company presents assets and liabilities in the balance
16 June 1995 with Corporate Identification Number
sheet based on current/non-current classification. An
L74899DL1995PLC069839 under the provision of
asset is treated as current if it satisfies any of the following
the Companies Act, 1956. The Company is primarily
conditions:
engaged in manufacturing, selling, bottling and
distribution of beverages of PepsiCo’s brand i. Expected to be realised or intended to sold or
in geographically pre-defined territories as per consumed in normal operating cycle;
franchisee agreement with PepsiCo India Holdings ii. Held primarily for the purpose of trading;
Private Limited.
iii. Expected to be realised within twelve months after
the reporting period; or
2 Basis for preparation
iv. Cash or cash equivalent unless restricted from being
These standalone financial statements (“financial
exchanged or used to settle a liability for at least
statements”) of the Company have been prepared
twelve months after the reporting period.
in accordance with Indian Accounting Standard
All other assets are classified as non-current.
(“Ind AS”) and comply with requirements of Ind
AS notified under section 133 of the Companies A liability is current if it satisfies any of the following
Act, 2013 (“the Act”), read together with the conditions:
Companies (Indian Accounting Standards) Rules, i. It is expected to be settled in normal operating cycle;
2015 as amended, and other relevant provisions of
ii. It is held primarily for the purpose of trading;
the Act and guidelines issued by the Securities and
Exchange Board of India (SEBI) from time to time, iii. It is due to be settled within twelve months after the
stipulation contained in Schedule III (Revised) and reporting period; or
other pronouncements/ provisions of applicable
iv. There is no unconditional right to defer the settlement
laws. These financial statements are authorised for of the liability for at least twelve months after the
issue on 10 February 2025 in accordance with a reporting period.
resolution of the Board of Directors. The Board of
Directors can permit the revision to the standalone All other liabilities are classified as non-current.
financial statements after obtaining necessary Deferred tax assets and liabilities are classified as non-
approvals or at the instance of regulatory authorities current assets and liabilities.
as per provisions of the Act.
The operating cycle is the time between the acquisition of
assets for processing and its realisation in cash and cash
These standalone financial statements have been
equivalents. The Company has identified twelve months
prepared using the material accounting policies
as its operating cycle.
and measurement basis summarised below. These
accounting policies have been used consistently The Company follows calendar year as its financial year as
throughout all periods presented in these standalone approved by the Company Law Board, New Delhi.
financial statements except as mentioned in The financial statements of the Company are presented
note 3.2 below. in Indian Rupees (`), which is also its functional currency
and all amounts disclosed in the financial statements
The financial statements have been prepared on a and notes have been rounded off to the nearest million
historical cost basis, except for the following assets as per the requirement of Schedule III to the Act, unless
and liabilities which have been measured at fair value: otherwise stated.

354 Varun Beverages Limited

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Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
3 Material accounting policies 3.2 Revenue recognition
3.1 Fair value measurements Revenue is recognized upon transfer of control
The Company measures financial instruments at of promised goods or services to customers at an
fair value which is the price that would be received amount that reflects the consideration to which the
to sell an asset or paid to transfer a liability in an Company is expected to be entitled to in exchange
orderly transaction between independent market for those goods or services. Revenue towards
participants at the measurement date. The fair value satisfaction of a performance obligation is measured
measurement is based on the presumption that the at the amount of transaction price (net of variable
transaction to sell the asset or transfer the liability considerations) allocated to that performance
takes place either: obligation as per contractually agreed terms with the
customers. The transaction price of goods sold and
• In the principal market for the asset or liability, or services rendered is net of variable considerations on
• In the absence of a principal market, in the most account of various discounts and schemes offered
advantageous market for the asset or liability. by the Company as part of the contract. Revenue
is recorded provided the recovery of consideration
All assets and liabilities for which fair value is
is probable and determinable. Revenue from sale
measured or disclosed in the financial statements are
of goods and services transferred to distributors/
categorised within the fair value hierarchy, described
intermediaries are recognised at a point in time.
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole: a) Sale of goods:
Revenue from the sale of manufactured and
Level 1 - Quoted (unadjusted) market prices in active
traded goods products is recognised upon
markets for identical assets or liabilities;
transfer of control of products to the customers
Level 2 - Valuation techniques for which the lowest which coincides with their delivery to customer
level input that is significant to the fair value and is measured at fair value of consideration
measurement is directly or indirectly observable; and received/receivable, net of discounts, amount
collected on behalf of third parties and
Level 3 - Valuation techniques for which the lowest applicable taxes.
level input that is significant to the fair value
b) Interest:
measurement is unobservable.
Interest income is recognised on time
The Company uses valuation techniques that are proportion basis taking into account the amount
appropriate in the circumstances and for which outstanding and rate applicable. For all debt
sufficient data are available to measure fair value, instruments measured at amortised cost, interest
maximising the use of relevant observable inputs and income is recorded using the effective interest
minimising the use of unobservable inputs. For assets rate (“EIR”). EIR is the rate that exactly discounts
and liabilities that are recognised in the balance the estimated future cash payments or receipts
sheet at fair value on a recurring basis, the Company over the expected life of the financial instrument
determines whether transfers have occurred between or a shorter period, where appropriate, to the
levels in the hierarchy by re-assessing categorisation gross carrying amount of the financial assets.
(based on the lowest level input that is significant to Interest income is included in other income in
the fair value measurement as a whole) at the end of the Statement of Profit and Loss.
each reporting period.
c) Dividends:
For the purpose of fair value disclosures, the Dividend is recognised when the Company’s
Company has determined classes of assets and right to receive the payment is established,
liabilities on the basis of the nature, characteristics which is generally when shareholders approve
and risks of the asset or liability and the level of the the dividend.
fair value hierarchy as explained above.

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Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
d) Commission: location and condition and is determined
Commission income is recognised rateably on a weighted average cost basis.
over the contract period as per the agreed
contractual terms. Net realisable value is the estimated selling price
in the ordinary course of business, less estimated
e) Services rendered: costs of completion and estimated costs necessary
to make the sale. Provision for obsolescence is
Revenue from service related activities including
determined based on management’s assessment
management and technical know-how service,
and is charged to the Statement of Profit and Loss
job work are recognised as and when services
are rendered and on the basis of contractual 3.4 Property, plant and equipment
terms with the parties.
Measurement at recognition:
3.3 Inventories 
Property, plant and equipment and capital work-
Inventories are valued as follows: in progress are stated at cost, net of accumulated
depreciation and accumulated impairment losses, if any.
a) Raw materials, components, stores and spares:
At lower of cost and net realisable value. Cost
Cost comprises the purchase price, borrowing costs
of inventory comprises all costs of purchases,
if capitalisation criteria are met and any directly
duties, taxes (other than those subsequently
attributable cost of bringing the asset to its working
recoverable from tax authorities) and all other
condition for the intended use. Any trade discounts and
costs incurred in bringing the inventory to
rebates are deducted in arriving at the purchase price.
their present location and condition and is
The cost of an item of property, plant and equipment
determined on a moving weighted average cost
shall be recognised as an asset if, and only if:
basis.
a) 
it is probable that future economic benefits
However, materials and other items held for use associated with the item will flow to the entity; and
in the production of inventories are not written
b) the cost of the item can be measured reliably.
down below cost if the finished products in
which they will be incorporated are expected to Subsequent expenditure related to an item of property,
be sold at or above cost. plant and equipment is added to its book value only if
it increased the future benefits from the existing asset
b) Work-in-progress: At lower of cost and net beyond its previously assessed standard of performance.
realisable value. Cost for this purpose includes All other expenses on existing assets, including day-to-
material, labour and appropriate allocation day repair and maintenance expenditure and cost of
of overheads including depreciation. Cost is replacing parts, are charged to the Statement of Profit
determined on a weighted average basis. and Loss for the period during which such expenses are
incurred. Expenditure directly relating to construction
c) Intermediate goods/ Finished goods: activity is capitalised. Indirect expenditure incurred
i. Self manufactured - At lower of cost and during construction period is capitalised as a part of
net realisable value. Cost for this purpose indirect construction cost to the extent the expenditure
includes material, labour and appropriate is related to construction or is incidental thereto. Other
allocation of overheads. Cost is determined indirect costs incurred during the construction periods
on a weighted average basis. which are not related to construction activity nor are
incidental thereto are charged to the Statement of Profit
ii. Traded - At lower of cost and net realisable and Loss.
value. Cost of inventory comprises all costs
of purchases, duties, taxes (other than Value for individual assets acquired for a consolidated
those subsequently recoverable from tax price, the cost is apportioned to the various assets
authorities) and all other costs incurred on their relative fair values basis as determined by
in bringing the inventory to their present competent valuers.

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Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
Depreciation: the management is of the opinion that they do
The management has estimated, supported by not have any different useful life from that of the
technical assessment, the useful lives of property, principal asset.
plant and equipment. The management believes
that these estimated useful lives are realistic and In case of revaluation of leasehold land, the resulting
reflect fair approximation of the period over which amortisation of the total revalued amount is
the assets are likely to be used. Depreciation is expensed off to the Statement of Profit and Loss.
calculated on a straight-line basis over the estimated
useful lives of the assets as follows: Derecognition:
An item of property, plant and equipment and any
Description Useful lives significant part initially recognised is de-recognised
(upto) upon disposal or when no future economic benefits
Leasehold land Over lease period are expected from its use or disposal. Any gain or loss
Buildings-factory 30 years arising on de-recognition of the asset (calculated as
Buildings-others 60 years the difference between the net disposal proceeds or
Plant and equipment 20 years amount of security deposit adjusted and the carrying
Furniture and fixtures 10 years amount of the asset) is included in the Statement of
Delivery vehicles 10 years Profit and Loss when the asset is de-recognised.
Vehicles (other than delivery 7 years
vehicles) 
Breakages of containers are adjusted on ‘first
Office equipment 4 years bought first broken’ basis, since it is not feasible
Computer equipment 4 years
to specifically identify the broken containers in the
Containers 6 years
fixed assets records.
Post-mix vending machines 8 years
and refrigerators (Visi - Cooler)
3.5 Intangible assets
Power generating assets* 22 years
Intangible assets are initially recognised at:
*Included in plant and equipment in financial statements.
a) In case the assets are acquired separately, then
Freehold land is not depreciated. at cost,
b) In case the assets are acquired in a business
Depreciation on property, plant and equipment
combination or under any asset purchase
is provided over the useful lives of assets as
specified in Schedule II to the Act except where agreement, at fair value.
the management, based on independent technical Following initial recognition, intangible assets are
assessment, depreciates certain assets are over carried at cost less any accumulated amortisation
estimated useful lives which are different from the and accumulated impairment loss. Intangible assets
useful lives prescribed in the Schedule II to the Act. with finite useful life are assessed for impairment
The Company has used the remaining useful lives whenever there is an indication that the intangible
to compute depreciation on its property, plant and assets may be impaired. Amortisation of intangible
equipment, acquired under the business transfer assets such as softwares and distribution network
agreement based on external technical evaluation. is computed on a straight-line basis, at the rates
representing estimated useful life of 4 years and
Depreciation on property, plant and equipment
8 years respectively.
which are added/disposed off during the year is
provided on pro-rata basis with reference to the The franchise rights and trademarks acquired as
month of addition/deletion. part of business combinations normally have a
The Company has technically evaluated all the remaining legal life of not exceeding twenty years
property, plant and equipment for determining the but is renewable every twenty years and is well
separate identifiable assets having different useful established. The Company intends to renew these
lives under the component approach. On technical rights continuously and evidence supports its
evaluation of all separate identifiable components, ability to do so. An analysis of product life cycle

Annual Report 2024 357

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
studies, market and competitive trends provides c) The Company assesses whether it has the right
evidence that the product will generate net cash to direct ‘how and for what purpose’ the asset is
inflows for the Company for an indefinite period. used throughout the period of use. At inception or
Therefore, these rights have been carried at cost on reassessment of a contract that contains a lease
without amortisation, but is tested for impairment component, the Company allocates the consideration
annually, at the cash-generating unit level. The in the contract to each lease component on the basis
assessment of indefinite life is reviewed annually to of their relative stand-alone prices. However, for the
determine whether the indefinite life continues to leases of land and buildings in which it is a lessee,
be supportable. If not, the change in useful life from the Company has elected not to separate non-lease
indefinite to finite is made on a prospective basis. components and account for the lease and non-lease
components as a single lease component.
3.6 Borrowing costs
Borrowing costs include interest, amortisation Measurement and recognition of leases as a lessee
of ancillary costs incurred in connection with The Company recognizes a right-of-use asset and a
the arrangement of borrowings and exchange lease liability at the lease commencement date. The
differences arising from foreign currency borrowings right-of-use asset is initially measured at cost, which
to the extent they are regarded as an adjustment comprises the initial amount of the lease liability
to the interest cost. Borrowing costs, if any, directly adjusted for any lease payments made at or before
attributable to the acquisition, construction or the commencement date, plus any initial direct
production of an asset that necessarily takes a costs incurred and an estimate of costs to dismantle
substantial period of time to get ready for its and remove the underlying asset or to restore the
intended use or sale are capitalized, if any. All other underlying asset or the site on which it is located,
borrowing costs are expensed to the Statement of less any lease incentives received.
Profit and Loss in the period in which they occur.
The right-of-use asset is subsequently measured at
3.7 Leases
cost less any accumulated depreciation, accumulated
The Company as a lessee
impairment losses (unless such right of use assets
The Company enters into an arrangement for lease fulfills the requirements of Ind AS 40 - Investment
of buildings and equipments. Such arrangements are Property and is accounted for as there under), if any
generally for a fixed period but may have extension and adjusted for any re-measurement of the lease
or termination options. In accordance with Ind AS 116 liability. The right-of-use asset is depreciated using
– Leases, at inception of the contract, the Company the straight-line method from the commencement
assesses whether a contract is, or contains a lease. A date over the shorter of lease term or useful life of
lease is defined as ‘a contract, or part of a contract, right-of-use asset. Right-of-use asset are tested for
that conveys the right to control the use an asset (the impairment whenever there is any indication that
underlying asset) for a period of time in exchange for their carrying amounts may not be recoverable.
consideration’. Impairment loss, if any, is recognised in the Statement
of Profit and Loss.
To assess whether a contract conveys the right to
control the use of an identified asset, the Company
The lease liability is initially measured at the present
assesses whether:
value of the lease payments that are not paid at the
a) The contract involves the use of an identified commencement date, discounted using the interest
asset – this may be specified explicitly or rate implicit in the lease or, if that rate cannot be
implicitly, and should be physically distinct or readily determined, the Company’s incremental
represent substantially all of the capacity of a borrowing rate. Generally, the Company uses its
physically distinct asset. If the supplier has a incremental borrowing rate as the discount rate.
substantive substitution right, then the asset is
not identified; Lease payments included in the measurement of the
lease liability comprise the following:
b) The Company has the right to obtain substantially
all of the economic benefits from use of the asset a) 
Fixed payments, including in-substance fixed
throughout the period of use; and payments;

358 Varun Beverages Limited

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Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
b) 
Variable lease payments that depend on an of this assessment, the Company considers certain
index or a rate, initially measured using the indicators such as whether the lease is for the major
index or rate as at the commencement date; part of the economic life of the asset.

c) 
Amounts expected to be payable under a When the Company is an intermediate lessor, it
residual value guarantee; and accounts for its interests in the head lease and
the sub-lease separately. It assesses the lease
d) The exercise price under a purchase option that classification of a sub-lease with reference to the
the Company is reasonably certain to exercise,
right-of-use asset arising from the head lease, not
lease payments in an optional renewal period if
with reference to the underlying asset. If a head lease
the Company is reasonably certain to exercise
is a short-term lease to which the Company applies
an extension option, and penalties for early
the exemption described above, then it classifies the
termination of a lease unless the Company is
reasonably certain not to terminate early. sub-lease as an operating lease.

The lease liability is measured at amortized cost The Company recognizes lease payments received
using the effective interest rate method. It is under operating leases as income on a straight-line
remeasured when there is a change in future lease basis over the lease term as part of ‘other income’.
payments arising from a change in an index or rate,
if there is a change in the Company’s estimate of The accounting policies applicable to the Company
the amount expected to be payable under a residual as a lessor in the comparative period were not
value guarantee, or if the Company changes its different from Ind AS 116 - Leases. However, when the
assessment of whether it will exercise a purchase, Company was an intermediate lessor the sub-leases
extension or termination option. When the lease were classified with reference to the underlying asset.
liability is remeasured in this way, a corresponding
adjustment is made to the carrying amount of the The Company recognizes lease payments received
right-of-use asset, or is recorded in profit or loss if under operating leases as income on a straight-line
the carrying amount of the right-of-use asset has basis over the lease term. In case of a finance lease,
been reduced to zero, as the case may be. finance income is recognised over the lease term
based on a pattern reflecting a constant periodic
The Company presents right-of-use assets that
rate of return on the lessor’s net investment in
do not meet the definition of investment property
the lease. When the Company is an intermediate
and lease liabilities as a separate line item in the
lessor it accounts for its interests in the head lease
standalone financial statements of the Company.
and the sub-lease separately. It assesses the lease
The Company has elected not to apply the classification of a sub-lease with reference to the
requirements of Ind AS 116 - Leases to short-term right-of-use asset arising from the head lease, not
leases of all assets that have a lease term of 12 with reference to the underlying asset. If a head lease
months or less and leases for which the underlying is a short term lease to which the Company applies
asset is of low value. The lease payments associated the exemption described above, then it classifies the
with these leases are recognized as an expense on a sub-lease as an operating lease.
straight-line basis over the lease term.
3.8 Employee benefits
The Company as a lessor Contribution to provident and other funds
When the Company acts as a lessor, it determines at Retirement benefit in the form of provident fund is
lease inception whether each lease is a finance lease a defined contribution scheme. The Company has
or an operating lease. To classify each lease, the no obligation, other than the contribution payable
Company makes an overall assessment of whether to the provident fund. The Company recognises
the lease transfers substantially all of the risks and contribution payable to the provident fund scheme
rewards incidental to ownership of the underlying as an expense, when an employee renders the
asset. If this is the case, then the lease is a finance related service. If the contribution payable to the
lease; if not, then it is an operating lease. As part scheme for service received before the balance

Annual Report 2024 359

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
sheet date exceeds the contribution already paid, The Company recognises the following changes
the deficit payable to the scheme is recognised as in the net defined benefit obligation as an
a liability after deducting the contribution already expense in the Statement of Profit and Loss:
paid. If the contribution already paid exceeds the
• Service costs comprising current service
contribution due for services received before the
costs, past-service costs, gains and losses on
balance sheet date, then excess is recognised as
curtailments and non-routine settlements; and
an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment • Net interest expense or income
or a cash refund.
Compensated absences
Gratuity
The Company treats accumulated leave expected
Gratuity is a defined benefit scheme. The cost of to be carried forward beyond twelve months, as
providing benefits under the defined benefit plan is long-term employee benefit which are computed
determined using the projected unit credit method. based on the actuarial valuation using the projected
The Company recognises termination benefit as unit credit method at the period end. Actuarial gains/
a liability and an expense when the Company has losses are immediately taken to the Statement of
a present obligation as a result of past event, it is Profit and Loss and are not deferred. The Company
probable that an outflow of resources embodying presents the leave as a current liability in the balance
economic benefits will be required to settle the sheet to the extent it does not have an unconditional
obligation and a reliable estimate can be made of the right to defer its settlement for twelve months
amount of the obligation. If the termination benefits after the reporting date. Where Company has the
fall due more than twelve months after the balance unconditional legal and contractual right to defer the
sheet date, they are measured at present value of settlement for a period beyond twelve months, the
future cash flows using the discount rate determined balance is presented as a non-current liability.
by reference to market yields at the balance sheet
Accumulated leave, which is expected to be utilized
date on government bonds.
within the next twelve months, is treated as short
term employee benefit. The Company measures the
Re-measurements, comprising actuarial gains and
expected cost of such absences as the additional
losses, the effect of the asset ceiling, excluding
amount that it expects to pay as a result of the
amounts included in net interest on the net defined
unused entitlement that has accumulated at the
benefit liability and the return on plan assets (excluding
reporting date.
amounts included in net interest on the net defined
benefit liability), are recognised immediately in the
All other employee benefits payable/available within
balance sheet with a corresponding debit or credit
twelve months of rendering the service are classified
to retained earnings through Other Comprehensive as short-term employee benefits. Benefits such as
Income (“OCI”) in the period in which they occur. salaries, wages, bonus, etc. are recognised in the
Re-measurements are not reclassified to profit or Statement of Profit and Loss in the period in which
loss in subsequent periods. the employee renders the related service.

Past service costs are recognised in Statement of

3.9 Share-based payments
Profit and Loss on the earlier of:
Employees (including senior executives) of the Group
• The date of the plan amendment or curtailment, receive remuneration in the form of share-based
and payments, whereby employees render services
as consideration for equity instruments which are
• The date that the Company recognises related
classified as equity-settled transactions.
restructuring cost

Net interest is calculated by applying the The cost of equity-settled transactions is determined
discount rate to the net defined benefit liability by the fair value at the date of grant using an
or asset. appropriate valuation model. That cost is recognised

360 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
as an employee benefit expense with a corresponding Where an award is cancelled by the Company or by
increase in ‘Share option outstanding account’ in the counterparty, any remaining element of the fair
other equity, over the period in which the service value of the award is expensed immediately through
conditions are fulfilled in relation to options granted the Statement of Profit and Loss.
to employees of the Company. Further, In relation to
options granted to employees of subsidiaries, the The dilutive effect of outstanding options is reflected
amount is disclosed under non-current investments as additional share dilution in the computation of
with a corresponding increase in ‘Share option diluted earnings per share.
outstanding account’ and disclosed as equity
contribution in subsidiaries. 3.10 Foreign currency transactions and translations
Transactions in foreign currencies are initially
The cumulative expense recognised for equity-settled
recorded in the functional currency, by applying
transactions at each reporting date until the vesting
to the foreign currency amount the exchange rate
date reflects the extent to which the vesting period
between the functional currency and the foreign
has expired and the Company’s best estimate of the
currency at the date of the transaction.
number of equity instruments that will ultimately
vest.
Foreign currency monetary items are reported using
Service and non-market performance conditions the closing rate. Non-monetary items which are
are not taken into account when determining the carried in terms of historical cost denominated in a
grant date fair value of awards, but the likelihood foreign currency are reported using the exchange
of the conditions being met is assessed as part of rate at the date of the transaction.
the Company’s best estimate of the number of
equity instruments that will ultimately vest. Market Exchange differences arising on the settlement of
performance conditions are reflected within the monetary items or on restatement of the Company’s
grant date fair value. Any other conditions attached monetary items at rates different from those at
to an award, but without an associated service which they were initially recorded during the year,
requirement, are considered to be non-vesting or reported in previous financial statements, are
conditions. recognised as income or as expenses in the year in
which they arise.
Non-vesting conditions are reflected in the fair value
of an award and lead to an immediate expensing Exchange differences pertaining to long-term foreign
of an award unless there are also service and/or currency monetary items obtained or given on or
performance conditions. before 31 December 2016: Exchange differences
arising on conversion of long term foreign currency
No expense is recognised for awards that do not monetary items used for acquisition of depreciable
ultimately vest because non-market performance
fixed assets are added to the cost of fixed assets
and/or service conditions have not been met. Where
and is depreciated over the remaining life of the
awards include a market or non-vesting condition,
respective fixed asset and in other cases, is recorded
the transactions are treated as vested irrespective
under the head ‘Foreign Currency Monetary Item
of whether the market or non-vesting condition is
Translation Difference Account’ and is amortised
satisfied, provided that all other performance and/or
service conditions are satisfied. over the period of maturity of underlying long term
foreign currency monetary items, in accordance with
When the terms of an equity-settled award are the option available under Ind AS 101.
modified, the minimum expense recognised is the
expense had the terms had not been modified, if the Exchange differences pertaining to long-term
original terms of the award are met. An additional foreign currency monetary items obtained or given
expense is recognised for any modification that on or after 01 January 2017: Exchange differences
increases the total fair value of the share-based arising on restatement of long term foreign currency
payment transaction, or is otherwise beneficial to the monetary items obtained or given is recorded in the
employee as measured at the date of modification. Statement of Profit and Loss.

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Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
3.11 Business combination and goodwill over the aggregate consideration transferred, then
Business combinations are accounted for using the gain is recognised in OCI and accumulated in
the acquisition method. The cost of an acquisition equity as capital reserve. However, if there is no clear
is measured as the aggregate of the consideration evidence of bargain purchase, the entity recognises
transferred measured at acquisition date fair value the gain directly in equity as capital reserve, without
routing the same through OCI.
and the amount of any non-controlling interests in
the acquiree. At the acquisition date, the identifiable
After initial recognition, goodwill is measured at cost
assets acquired and the liabilities assumed are
less any accumulated impairment losses. For the
recognised at their acquisition date fair values.
purpose of impairment testing, goodwill acquired in
For this purpose, the liabilities assumed include
a business combination is, from the acquisition date,
contingent liabilities representing present obligation
allocated to each of the Company’s cash-generating
and they are measured at their acquisition fair values
units that are expected to benefit from the
irrespective of the fact that outflow of resources
combination, irrespective of whether other assets or
embodying economic benefits is not probable.
liabilities of the acquiree are assigned to those units.
However, deferred tax assets or liabilities, and the
assets or liabilities related to employee benefit A cash generating unit to which goodwill has been
arrangements are recognised and measured in allocated is tested for impairment annually, or more
accordance with Ind AS 12 ‘Income Taxes’ and Ind AS frequently when there is an indication that the unit
19 ‘Employee Benefits’ respectively. may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount,
When the Company acquires a business, it assesses the impairment loss is allocated first to reduce the
the financial assets and liabilities assumed for carrying amount of any goodwill allocated to the
appropriate classification and designation in unit and then to the other assets of the unit pro
accordance with the contractual terms, economic rata based on the carrying amount of each asset in
circumstances and pertinent conditions as at the the unit.
acquisition date.
Any impairment loss for goodwill is recognised in
Any contingent consideration to be transferred by the the Statement of Profit and Loss. An impairment loss
Company is recognised at fair value at the acquisition recognised for goodwill is not reversed in subsequent
date. Contingent consideration classified as an asset periods.
or liability that is a financial instrument and within
the scope of Ind AS 109 ‘Financial Instruments’ (‘Ind Where goodwill has been allocated to a
AS 109’), is measured at fair value with changes in cash-generating unit and part of the operation within
fair value recognised in the Statement of Profit and that unit is disposed of, the goodwill associated with
Loss. If the contingent consideration is not within the the disposed operation is included in the carrying
scope of Ind AS 109, it is measured in accordance amount of the operation when determining the
with the appropriate Ind AS. gain or loss on disposal. Goodwill disposed in these
circumstances is measured based on the relative
Goodwill is initially measured at cost, being the excess values of the disposed operation and the portion of
of the aggregate of the consideration transferred the cash-generating unit retained.
over the net identifiable assets acquired and
liabilities assumed. If the fair value of the net assets If the initial accounting for a business combination
acquired is in excess of the aggregate consideration is incomplete by the end of the reporting
transferred, the Company re-assesses whether it has period in which the combination occurs, the
correctly identified all of the assets acquired and all Company reports provisional amounts for the
of the liabilities assumed and reviews the procedures items for which the accounting is incomplete.
used to measure the amounts to be recognised at Those provisional amounts are adjusted through
the acquisition date. If the reassessment still results goodwill during the measurement period, or
additional assets or liabilities are recognised, to
in an excess of the fair value of net assets acquired

362 Varun Beverages Limited

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Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
reflect new information obtained about facts and substantively enacted, at the reporting date. Current
circumstances that existed at the acquisition date income tax relating to items recognised outside profit
that, if known, would have affected the amounts or loss is recognised outside profit or loss (either in OCI
recognised at that date. These adjustments are or in equity).
called as measurement period adjustments. The
measurement period does not exceed one year Current tax items are recognised in correlation to the
from the acquisition date. underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
3.12 Government grants
in the tax returns with respect to situations in which
Grants from the Government are recognised when applicable tax regulations are subject to interpretation
there is reasonable assurance that all underlying and establishes provisions where appropriate including
conditions will be complied with and that the grant amount expected to be paid/recovered for uncertain
will be received. tax position.
Grants related to income are recognised as income
Deferred tax
on a systematic basis in the Statement of Profit and
Loss over the periods necessary to match them Deferred tax is provided using the liability method
with the related costs, which they are intended to on temporary differences between the tax bases of
compensate and are presented as ‘Other operating assets and liabilities and their book bases. Deferred
revenues. Further, where loans or similar assistance tax liabilities are recognised for all temporary
are provided by Government or related institutions, differences, the carry forward of unused tax credits
with an interest rate below the current applicable and any unused tax losses. Deferred tax assets are
market rate, the effect of this favorable interest recognised to the extent that it is probable that
is regarded as a government grant. The loan or taxable profit will be available against which the
assistance is initially recognised and measured at fair deductible temporary differences, and the carry
value and the government grant is measured as the forward of unused tax credits and unused tax losses
difference between the initial carrying value of the can be utilised. Deferred tax assets and liabilities are
loan and the proceeds to be received. That grant is measured at the tax rates that are expected to apply
recognised in the Statement of Profit and Loss under in the year when the asset is realised or the liability
‘other operating revenue’. The loan is subsequently is settled, based on tax rates (and tax laws) that
measured in the year of disbursement as per the have been enacted or substantively enacted at the
accounting policy applicable to financial liabilities. reporting date.

Government grants related to assets are presented

Deferred tax relating to items recognised outside
in the balance sheet by deducting the grant from the
profit or loss is recognised outside profit or loss.
carrying value of the asset and non-monetary grant
Deferred tax items are recognised in correlation to
is recognised at a nominal value.
the underlying transaction either in OCI or directly
in equity.
3.13 Income taxes
Tax expense is the aggregate amount included in The carrying amount of deferred tax assets is
the determination of profit or loss for the period in reviewed at each reporting date and reduced to the
respect of current tax and deferred tax. extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
Current income tax
the deferred tax asset to be utilised. Unrecognised
Current income tax is measured at the amount expected deferred tax assets are re-assessed at each reporting
to be paid to the tax authorities in accordance with date and are recognised to the extent that it has
the Income-tax Act, 1961 and rules thereunder. Current become probable that future taxable profits will
income tax assets and liabilities are measured at the allow the deferred tax asset to be recovered.
amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used Deferred tax assets and deferred tax liabilities are
to compute the amount are those that are enacted or offset if a legally enforceable right exists to set off

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Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
current tax assets against current tax liabilities and In assessing value in use, the estimated future cash
the deferred taxes relate to the same taxable entity flows are discounted to their present value using a
and the same taxation authority. pre-tax discount rate that reflects current market
assessments of the time value of money and the
Minimum Alternate Tax (“MAT”) credit is recognised risks specific to the asset. In determining fair value
as an asset only when and to the extent there is less costs of disposal, recent market transactions are
convincing evidence that the relevant members of taken into account. If no such transactions can be
the Company will pay normal income tax during identified, an appropriate valuation model is used.
the specified period. Such asset is reviewed at each These calculations are corroborated by valuation
reporting period end and the adjusted based on multiples, quoted share prices for publicly traded
circumstances then prevailing. Company’s or other available fair value indicators.
Deferred tax on business combination
The Company bases its impairment calculation on
When a liability assumed is recognized at the detailed budgets and forecast calculations, which
acquisition date but the related costs are not are prepared separately for each of the Company’s
deducted in determining taxable profits until a later CGUs to which the individual assets are allocated.
period, a deductible temporary difference arises These budgets and forecast calculations generally
which results in a deferred tax asset. A deferred tax cover a period of five years. For longer periods, a
asset also arises when the fair value of an identifiable long-term growth rate is calculated and applied
asset acquired is less than its tax base. In both cases, to project future cash flows after the fifth year. To
the resulting deferred tax asset affects goodwill. estimate cash flow projections beyond periods
covered by the most recent budgets/forecasts, the
3.14 Segment reporting
Company extrapolates cash flow projections in the
Operating segments are reported in a manner budget using a steady or declining growth rate for
consistent with the internal reporting provided to the subsequent years, unless an increasing rate can
chief operating decision maker, who is responsible be justified. In any case, this growth rate does not
for allocating resources and assessing performance exceed the long-term average growth rate for the
of the operating segments. The business activities products, industries, or country or countries in which
of the Company predominantly fall within a single the entity operates, or for the market in which the
operating segment, i.e., manufacturing and sale of asset is used.
beverages within India.
Impairment losses of continuing operations,
3.15 Impairment of non-financial assets including impairment on inventories, are recognised
The Company assesses, at each reporting date, in the Statement of Profit and Loss.
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual An assessment is made at each reporting date
impairment testing for an asset is required, the to determine whether there is an indication that
Company estimates the asset’s recoverable amount. previously recognised impairment losses no longer
An asset’s recoverable amount is the higher of an exist or have decreased. If such indication exists, the
asset’s or cash-generating unit’s (“CGU”) fair value Company estimates the asset’s or CGU’s recoverable
less costs of disposal and its value in use. Recoverable amount. A previously recognised impairment
amount is determined for an individual asset, unless loss is reversed only if there has been a change in
the asset does not generate cash inflows that are the assumptions used to determine the asset’s
largely independent of those from other assets or recoverable amount since the last impairment
groups of assets. loss was recognised. The reversal is limited so that
the carrying amount of the asset does not exceed
When the carrying amount of an asset or CGU its recoverable amount, nor exceed the carrying
exceeds its recoverable amount, the asset is amount that would have been determined, net
considered impaired and is written down to its of depreciation, had no impairment loss been
recoverable amount. recognised for the asset in prior years. Such reversal

364 Varun Beverages Limited

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Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
is recognised in the Statement of Profit and Loss of principal and interest, are measured at fair
unless the asset is carried at a revalued amount, in value through other comprehensive income
which case, the reversal is treated as a revaluation (“FVOCI”). The Company has not designated
increase. any debt instrument in this category.

3.16 Financial instruments c) Debt instruments at fair value through profit or

A financial instrument is any contract that gives loss
rise to a financial asset of one entity and a financial Fair Value Through Profit or Loss (“FVTPL”) is
liability or equity instrument of another entity. a residual category for debt instruments. Any
debt instrument, which does not meet the
Financial assets criteria for categorisation as at amortized cost
Initial recognition and measurement or as FVTOCI, is classified as at FVTPL.
All financial assets are recognised initially at fair value,
In addition, the Company may elect to
plus in the case of financial assets not recorded at fair
designate a debt instrument which otherwise
value through profit or loss (“FVTPL”), transaction
meets amortized cost or FVTOCI criteria, as at
costs that are attributable to the acquisition of the
FVTPL. However, such election is allowed only if
financial asset. However, trade receivables that do
doing so reduces or eliminates a measurement
not contain a significant financing component are
or recognition inconsistency (referred to as
measured at transaction price.
‘accounting mismatch’).
For purposes of subsequent measurement, financial
assets are classified as follows: Debt instruments included within the FVTPL
category are measured at fair value with all
a) Debt instruments at amortised cost changes recognised in the Statement of Profit
A ‘debt instrument’ is measured at the and Loss. The Company has not designated any
amortised cost where the asset is held within debt instrument in this category.
a business model whose objective is to hold
assets for collecting contractual cash flows; d) Equity instruments
and contractual terms of the asset give rise to All equity investments in scope of Ind AS 109 are
cash flows on specified dates that are solely measured at fair value. Equity instruments which
payments of principal and interest. are held for trading and contingent consideration
recognised by an acquirer in a business
After initial measurement, such financial assets combination to which Ind AS 103 ‘Business
are subsequently measured at amortised Combinations’ applies are Ind AS classified as
cost using the EIR method. Amortised cost is at FVTPL. Equity instruments included within
calculated by taking into account any discount the FVTPL category are measured at fair value
or premium on acquisition and fees or costs with all changes recognised in the Statement of
that are an integral part of the EIR. The interest Profit and Loss.
income from these financial assets is included
in finance income in the Statement of Profit and For all other equity instruments, the Company
Loss. The losses arising from impairment are may make an irrevocable election to present
recognised in the Statement of Profit and Loss. in other comprehensive income subsequent
This category generally applies to trade and changes in the fair values. The Company makes
other receivables. such election on an instrument-by-instrument
basis. The classification is made on initial
b) Debt instruments at fair value through other recognition and is irrevocable.
comprehensive income
Assets that are held for collection of contractual If the Company decides to classify an equity
cashflows and for selling the financial assets, instrument as at FVTOCI, then all fair value
where the cash flow represent solely payments changes on the instrument, excluding dividends,

Annual Report 2024 365

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
are recognised in the OCI. There is no recycling This category includes derivative financial
of the amounts from OCI to profit or loss, even instruments entered into by the Company that
on sale of investment. However, the Company are not designated as hedging instruments in
may transfer the cumulative gain or loss hedge relationships as defined by Ind AS 109.
within equity.
Financial liabilities designated upon initial
De-recognition recognition at fair value through profit or loss
A financial asset is de-recognised when the are designated as such at the initial date of
contractual rights to receive cash flows from the asset recognition, and only if the criteria in Ind AS 109
have expired or the Company has transferred its rights are satisfied. For liabilities designated as FVTPL,
to receive the contractual cash flows from the asset in fair value gains/ losses are recognised in the
a transaction in which substantially all the risks and Statement of Profit and Loss, except for those
rewards of ownership of the asset are transferred. attributable to changes in own credit risk, which
Impairment of financial assets are recognised in OCI. These gains/ loss are not
subsequently transferred to the Statement of
The Company measures the Expected Credit Loss
Profit and Loss.
(“ECL”) associated with its assets based on historical
trends, industry practices and the general business b) Financial liabilities at amortised cost
environment in which it operates. The impairment
methodology applied depends on whether there After initial recognition, financial liabilities
has been a significant increase in credit risk. ECL designated at amortised costs are subsequently
impairment loss allowance (or reversal) recognised measured at amortised cost using the EIR
during the period is recognised as income/ expense method. Gains and losses are recognised in
in the Statement of Profit and Loss under the head Statement of Profit and Loss when the liabilities
‘other expenses’. are derecognised as well as through the EIR
amortisation process.
Financial liabilities
Initial recognition and measurement Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
Financial liabilities are classified, at initial recognition,
or costs that are an integral part of the EIR. The
as financial liabilities at fair value through profit
or loss, loans and borrowings, payables, or as amortisation is included as finance costs in the
derivatives designated as hedging instruments in an Statement of Profit and Loss.
effective hedge, as appropriate. De-recognition
All financial liabilities are recognised initially at fair A financial liability is derecognised when the
value and, in the case of loans and borrowings and obligation under the liability is discharged or
payables, net of directly attributable transaction costs. cancelled or expires. When an existing financial
The Company’s financial liabilities include trade and liability is replaced by another from the same
other payables, loans and borrowings including bank lender on substantially different terms, or the terms
overdrafts and derivative financial instruments. of an existing liability are substantially modified,
such an exchange or modification is treated as
Subsequent measurement
the de-recognition of the original liability and the
The measurement of financial liabilities depends on recognition of a new liability. The difference in the
their classification, as described below: respective carrying amounts is recognised in the
a) Financial liabilities at FVTPL Statement of Profit and Loss.

Financial liabilities at FVTPL include financial Offsetting of financial instruments

liabilities held for trading and financial liabilities Financial assets and financial liabilities are offset and
designated upon initial recognition as at fair the net amount is reported in the balance sheet if
value through profit or loss. Financial liabilities there is a currently enforceable legal right to offset
are classified as held for trading if they are the recognised amounts and there is an intention to
incurred for the purpose of repurchasing in the settle on a net basis, to realise the assets and settle
near term. the liabilities simultaneously.

366 Varun Beverages Limited

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Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
3.17 Investment in subsidiaries, joint venture and authorised when it is approved by the shareholders. A
associates corresponding amount is recognised directly in equity.
An investor, regardless of the nature of its involvement 3.20 Provisions
with an entity (the investee), shall determine whether it
Provisions are recognised when the Company has
is a parent by assessing whether it controls the investee.
a present obligation (legal or constructive) as a
An investor controls an investee when it is exposed, or
result of a past event, it is probable that an outflow
has rights, to variable returns from its involvement with
of resources embodying economic benefits will
the investee and has the ability to affect those returns
be required to settle the obligation and a reliable
through its power over the investee.
estimate can be made of the amount of the
Thus, an investor controls an investee if and only if the obligation. When the Company expects some or
investor has all the following: all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is
a) power over the investee;
recognised as a separate asset, but only when the
b) 
exposure, or rights, to variable returns from its reimbursement is virtually certain. The expense
involvement with the investee; and relating to a provision is presented in the Statement
of Profit and Loss, net of any reimbursement.
c) the ability to use its power over the investee to
affect the amount of the investor’s returns. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
An associate is an entity over which the Company
rate that reflects, when appropriate, the risks
has significant influence. Significant influence is the
specific to the liability. When discounting is used, the
power to participate in the financial and operating
increase in the provision due to the passage of time
policy decisions of the investee, but not control or joint
is recognised as a finance cost.
control over those policies. The considerations made
in determining significant influence are similar to those 3.21 Contract liabilities
necessary to determine control over subsidiaries. A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
The Company has elected to recognise its investments
received consideration or is due from the customer. If
in subsidiary, joint venture and associate companies at
a customer pays consideration before the Company
cost in accordance with the option available in Ind AS
transfers goods or services to the customer, a
27, ‘Separate Financial Statements’.
contract liability is recognised when the payment is
Investment carried at cost is tested for impairment as made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when
per Ind-AS 36.
the Company performs under the contract.
3.18 Cash and cash equivalents
3.22 Contingent liabilities
Cash and cash equivalent in the balance sheet
A contingent liability is a possible obligation that
comprise cash at banks and on hand, cheques
arises from past events whose existence will be
on hand and short-term deposits with an original
confirmed by the occurrence or non–occurrence
maturity of three months or less, which are subject
of one or more uncertain future events beyond the
to an insignificant risk of changes in value. For the control of the Company or a present obligation that
purpose of the statement of cash flows, cash and is not recognised because it is not probable that
cash equivalents consist of cash and short-term an outflow of resources will be required to settle
deposits, as defined above. the obligation. A contingent liability also arises
in extremely rare cases where there is a liability
3.19 Dividend distribution to equity holders that cannot be recognised because it cannot be
The Company recognises a liability to make cash measured reliably. The Company does not recognize
or non-cash distributions to equity holders when a contingent liability but discloses its existence in
the distribution is authorised and the distribution the financial statements. Contingent assets are only
is no longer at the discretion of the Company. As disclosed when it is probable that the economic
per the corporate laws in India, a distribution is benefits will flow to the entity.

Annual Report 2024 367

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
3.23 Earnings per share impact the various accounting policies are described
Basic earnings/ (loss) per share are calculated by below and also in the relevant notes to the financial
dividing the net profit or loss for the year attributable statements. Changes in estimates are accounted for
to equity shareholders by the weighted average prospectively.
number of equity shares outstanding during the
year. The weighted average number of equity shares i) Judgements
outstanding during the year is adjusted for events, In the process of applying the Company’s
other than conversion of potential equity shares, accounting policies, management has made
that have changed the number of equity shares the following judgements, which have the most
outstanding without a corresponding change in significant effect on the amounts recognised in
resources. the financial statements:

In case of a bonus issue and sub-divison/split, the a) Contingencies

number of ordinary shares outstanding is increased
Contingent liabilities may arise from the
by number of shares issued as bonus shares and
ordinary course of business in relation to
sub-divison/split respectively in current year and
comparative period presented as if the event claims against the Company, including legal,
had occurred at the beginning of the earliest year contractor, land access and other claims. By
presented. their nature, contingencies will be resolved
only when one or more uncertain future
For the purpose of calculating diluted earnings/ events occur or fail to occur. The assessment
(loss) per share, the net profit or loss for the period of the existence, and potential quantum,
attributable to equity shareholders and the weighted of contingencies inherently involves the
average number of shares outstanding during the exercise of significant judgments and the
period are adjusted for the effects of all dilutive use of estimates regarding the outcome of
potential equity shares. future events.

3.24 Significant management judgement in applying b) Recognition of deferred tax assets

accounting policies and estimation uncertainty The extent to which deferred tax assets can
The preparation of the Company’s financial be recognised is based on an assessment
statements requires management to make of the probability that future taxable
judgements, estimates and assumptions that affect income will be available against which
the reported amounts of revenues, expenses, assets the deductible temporary differences and
and liabilities, and the accompanying disclosures, and tax loss carry-forward can be utilised. In
the disclosure of contingent liabilities at the date of addition, significant judgement is required
the financial statements. Estimates and assumptions in assessing the impact of any legal or
are continuously evaluated and are based on economic limits or uncertainties in various
management’s experience and other factors, tax jurisdictions.
including expectations of future events that are
ii) Estimates and assumptions
believed to be reasonable under the circumstances.
The key assumptions concerning the future and
Uncertainty about these assumptions and estimates other key sources of estimation uncertainty
could result in outcomes that require a material at the reporting date that have a significant
adjustment to the carrying amount of assets or risk of causing a material adjustment to the
liabilities affected in future periods. carrying amounts of assets and liabilities within
the next financial year, are described below.
In particular, the Company has identified the The Company based its assumptions and
following areas where significant judgements, estimates on parameters available when the
estimates and assumptions are required. Further financial statements were prepared. Existing
information on each of these areas and how they circumstances and assumptions about future

368 Varun Beverages Limited

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Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
developments, however, may change due to d) Business combinations
market change or circumstances arising beyond The Company uses valuation techniques
the control of the Company. Such changes are when determining the fair values of certain
reflected in the assumptions when they occur. assets and liabilities acquired in a business
a) Useful lives of tangible/intangible assets combination.
The Company reviews its estimate of the e) Impairment of non-financial assets and
useful lives of tangible/intangible assets at goodwill
each reporting date, based on the expected
In assessing impairment, Company
utility of the assets.
estimates the recoverable amount of each
b) Defined benefit obligation asset or cash-generating units based on
The cost of the defined benefit plan and expected future cash flows and uses an
other post-employment benefits and interest rate to discount them. Estimation
the present value of such obligation are uncertainty relates to assumptions
determined using actuarial valuations. about future operating results and the
An actuarial valuation involves making determination of a suitable discount rate.
various assumptions that may differ from
actual developments in the future. These f) Fair value measurement of financial
include the determination of the discount instruments
rate, future salary increases, mortality rates When the fair values of financial assets
and future pension increases. In view of and financial liabilities recorded in the
the complexities involved in the valuation Balance Sheet cannot be measured based
and its long-term nature, a defined benefit on quoted prices in active markets, their
obligation is highly sensitive to changes
fair value is measured using valuation
in these assumptions. All assumptions are
techniques including the DCF model. The
reviewed at each reporting date.
inputs to these models are taken from
c) Inventories observable markets where possible, but
The Company estimates the net realisable where this is not feasible, a degree of
values of inventories, taking into account judgment is required in establishing fair
the most reliable evidence available at each values. Judgements include considerations
reporting date. The future realisation of of inputs such as liquidity risk, credit risk
these inventories may be affected by future and volatility. Changes in assumptions
technology or other market-driven changes about these factors could affect the
that may reduce future selling prices. reported fair value of financial instruments.

Annual Report 2024 369

 Summary of material accounting policies and other explanatory information on the Standalone

370
Financial Statements for the year ended 31 December 2024

4A. Property, plant and equipment

(` in million)
Land Buildings Plant and Furniture and Vehicles Office Computer Containers Post-mix Total
freehold equipment fixtures equipment equipment vending
machines and
refrigerators
(Visi Cooler)

Varun Beverages Limited

Gross carrying amount
Balance as at 01 January 2024 7,287.92 16,066.41 45,317.81 270.33 1,247.56 407.71 312.67 4,794.97 9,463.15 85,168.53
Additions for the year 6.72 6,319.81 20,722.33 82.32 129.07 98.36 89.63 849.83 585.11 28,883.18
Disposals for the year - (349.98) (1,075.19) (0.31) (125.18) (2.18) (5.12) (164.41) (89.02) (1,811.39)
Balance as at 31 December 2024 7,294.64 22,036.24 64,964.95 352.34 1,251.45 503.89 397.18 5,480.39 9,959.24 112,240.32
Accumulated depreciation
Balance as at 01 January 2024 - 3,355.26 14,851.42 151.96 879.78 250.79 201.31 1,854.08 8,587.88 30,132.48
Depreciation charge for the year - 700.60 3,889.77 23.58 73.18 60.57 47.09 769.45 422.42 5,986.66
Reversal on disposals for the year - (81.61) (498.64) (0.28) (111.23) (1.53) (4.63) (110.90) (86.11) (894.93)
Balance as at 31 December 2024 - 3,974.25 18,242.55 175.26 841.73 309.83 243.77 2,512.63 8,924.19 35,224.21
Carrying amount as at 31 December 2024 7,294.64 18,061.99 46,722.40 177.08 409.72 194.06 153.41 2,967.76 1,035.05 77,016.11

(` in million)
Land Buildings Plant and Furniture and Vehicles Office Computer Containers Post-mix Total
freehold equipment fixtures equipment equipment vending
machines and
refrigerators
(Visi Cooler)
Gross carrying amount
Balance as at 01 January 2023 6,758.49 12,761.74 35,030.44 207.37 1,157.84 321.54 253.20 4,121.81 9,523.92 70,136.35
Additions for the year 541.92 3,572.67 11,644.35 63.15 156.36 91.43 70.28 1,367.28 65.81 17,573.25
Disposals/adjustments for the year (12.49) (268.00) (1,356.98) (0.19) (66.64) (5.26) (10.81) (694.12) (126.58) (2,541.07)
Balance as at 31 December 2023 7,287.92 16,066.41 45,317.81 270.33 1,247.56 407.71 312.67 4,794.97 9,463.15 85,168.53
Accumulated depreciation
Balance as at 01 January 2023 - 2,890.12 12,398.66 134.95 871.31 211.02 178.07 1,722.70 7,975.87 26,382.70
Depreciation charge for the year - 516.94 2,959.45 17.19 71.37 44.32 33.41 679.08 685.40 5,007.16
Reversal on disposals/adjustments for the year - (51.80) (506.69) (0.18) (62.90) (4.55) (10.17) (547.70) (73.39) (1,257.38)
Balance as at 31 December 2023 - 3,355.26 14,851.42 151.96 879.78 250.79 201.31 1,854.08 8,587.88 30,132.48
Carrying amount as at 31 December 2023 7,287.92 12,711.15 30,466.39 118.37 367.78 156.92 111.36 2,940.89 875.27 55,036.05
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
4A. Property, plant and equipment [Cont’d]
Footnotes to Note 4A:
i. Refer Note 50 for information on property, plant and equipment pledged as security by the Company.
ii. Pre-operative expenses incurred and capitalised during the year are as under:
(` in million)
Net Book Value 31 December 2024 31 December 2023
Balance at the beginning of the year 741.34 212.43
Add: Incurred during the year
Finance costs 400.95 619.36
Employee benefits expense and other expenses 933.98 320.99
Less: Capitalised during the year (1,780.72) (411.44)
Amount carried over included in CWIP 295.55 741.34
iii. The amount of contractual commitments for the acquisitions of property, plant and equipment are disclosed in Note 41.

iv. All title deeds of immovable properties are held in the name of the Company.

4B. Capital work-in-progress (CWIP)

The changes in the carrying value of capital work-in-progress for the year ended 31 December 2024 and
31 December 2023 are as follows :
(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2024 15,759.99
Additions for the year* 11,123.67
Transfer to property, plant and equipment (17,327.02)
Balance as at 31 December 2024 9,556.64

(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2023 5,399.45
Additions for the year* 17,376.80
Transfer to property, plant and equipment (7,016.26)
Balance as at 31 December 2023 15,759.99

* includes finance cost amounting to ` 400.95 million (31 December 2023: ` 619.36 million) and employee benefits expense and
other expenses amounting to ` 933.98 million (31 December 2023: ` 320.99 million).

Annual Report 2024 371

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
4B. Capital work-in-progress (CWIP)
Footnotes to Note 4B:
(i) CWIP ageing schedule
(` in million)
Particular Amount in CWIP for a period of
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in progress
As at 31 December 2024 9,406.68 129.05 17.45 3.46 9,556.64
As at 31 December 2023 15,112.82 642.55 1.15 3.47 15,759.99

There are no projects as on each reporting period where activity has been suspended. Also, there are no projects as on each
reporting period which has exceeded cost as compared to its original plan or where completion is overdue.

4C. Right of use assets (ROU)

(` in million)
Land Leased Leased plant Total
leasehold buildings and equipment
Gross carrying amount
Balance as at 01 January 2024 9,331.57 373.96 13.60 9,719.13
Additions for the year 544.67 57.44 - 602.11
Balance as at 31 December 2024 9,876.24 431.40 13.60 10,321.24
Accumulated amortisation
Balance as at 01 January 2024 572.23 263.30 7.71 843.24
Amortisation for the year 127.03 34.60 0.96 162.59
Balance as at 31 December 2024 699.26 297.90 8.67 1,005.83
Carrying amount as at 31 December 2024 9,176.98 133.50 4.93 9,315.41

(` in million)
Land Leased Leased plant Total
leasehold buildings and equipment
Gross carrying amount
Balance as at 01 January 2023 8,653.46 295.55 13.60 8,962.61
Addition during the year 694.72 78.41 - 773.13
Rebate (Refer footnote i) (16.61) - - (16.61)
Balance as at 31 December 2023 9,331.57 373.96 13.60 9,719.13
Accumulated amortisation
Balance as at 01 January 2023 460.33 229.16 6.06 695.55
Amortisation for the year 111.90 34.14 1.65 147.69
Balance as at 31 December 2023 572.23 263.30 7.71 843.24
Carrying amount as at 31 December 2023 8,759.34 110.66 5.89 8,875.89

Footnotes to Note 4C:

(i) During the year ended on 31 December 2023, the Company has received rebate on leasehold land acquired in
Gorakhpur amounting to ` 16.60 million on account of full premium payment as per prescribed timeline. The
rebate received is adjusted against the carrying value of the respective asset.

372 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
(ii) All lease deeds of immovable properties are held in the name of the Company except as disclosed below:
(` in million)
Description of property Gross Net Whether title deed holder Date since the Reason for not being held in
carrying carrying is a Promoter, director property is held name of Company
value value or relative of promoter/
director or employee
Land situated at Buxar, 371.34 367.52 No 21 December 2023 The Company has received
Bihar the possession letter dated
21 December 2023 of land
situated at Buxar, Bihar and is
in the process of getting lease
deed registered in its name.
Land situated 1.50 1.41 No 01 October 2018 The Company has executed
at Kolkata, West Bengal the lease agreement for
Kolkata, West Bengal land,
which is yet to be registered.

5A. Goodwill (Refer note i)

(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2024 19.40
Acquired during the year -
Balance as at 31 December 2024 19.40
Impairment
Balance as at 01 January 2024 -
Impairment charge for the year -
Balance as at 31 December 2024 -
Carrying amount as at 31 December 2024 19.40

(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2023 19.40
Acquired during the year -
Balance as at 31 December 2023 19.40
Impairment
Balance as at 01 January 2023 -
Impairment charge for the year -
Balance as at 31 December 2023 -
Carrying amount as at 31 December 2023 19.40

Annual Report 2024 373

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
5B. Other intangible assets
(` in million)
Franchise rights/ Distribution Computer Total
trademarks network software
(Refer note i)
Gross carrying amount
Balance as at 01 January 2024 6,042.96 157.64 280.51 6,481.11
Additions for the year - - 39.11 39.11
Disposals for the year - - - -
Balance as at 31 December 2024 6,042.96 157.64 319.62 6,520.22
Amortisation
Balance as at 01 January 2024 656.97 99.58 273.82 1,030.37
Amortisation charge for the year - 19.70 10.11 29.81
Reversal on disposals for the year - - - -
Balance as at 31 December 2024 656.97 119.28 283.93 1,060.18
Carrying amount as at 31 December 2024 5,385.99 38.36 35.69 5,460.04

(` in million)
Franchise rights/ Distribution Computer Total
trademarks network software
(Refer note i)
Gross carrying amount
Balance as at 01 January 2023 6,042.96 157.64 279.89 6,480.49
Additions for the year - - 0.62 0.62
Disposals for the year - - - -
Balance as at 31 December 2023 6,042.96 157.64 280.51 6,481.11
Amortisation
Balance as at 01 January 2023 656.97 79.87 265.10 1,001.94
Amortisation charge for the year - 19.71 8.72 28.43
Reversal on disposals for the year - - - -
Balance as at 31 December 2023 656.97 99.58 273.82 1,030.37
Carrying amount as at 31 December 2023 5,385.99 58.06 6.69 5,450.74

i. Goodwill and franchise rights/trade marks with indefinite useful lives are tested for impairment annually, or
more frequently if the events and circumstances indicate that the carrying value may be impaired. The useful
life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful
life assessment continues to be supportable.

The Company has considered the relevant provisions of Ind AS 38 on ‘Intangibles Assets’ which provides factors to
determine the life of intangible assets and accordingly the carrying value of franchisee rights have been considered
to have an indefinite life. These franchisee rights meet the prescribed criteria of renewal at nominal cost, renewal
with no specific conditions attached, are sustainable and the same is supported by evidences of being renewed.
Management is of the opinion that, based on an analysis of all the relevant factors, there is no foreseeable limit to
the period over which the franchise rights are expected to generate net cash inflows for the Company.

The assumptions used in this impairment assessment are most sensitive to following:
a) Weighted average cost of capital ‘’WACC’’ of 16.45% (Previous year - 13.33%) for the explicit period and
16.45% (Previous year - 13.33%) for the terminal year.

b) For arriving at the terminal value, approximate growth rate of 6% (Previous year - 5%) is considered.

374 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
5B. Other intangible assets [Cont’d]
c) Number of years for which cash flows were considered are 5 years.
d) The approximate rate of growth in sales is estimated at 8%-10% (Previous year - 8%-10%) in the discrete
period.
No impairment loss was identified on the above assessment.
ii. The amount of contractual commitments for the acquisitions of intangible assets are disclosed in Note 41.
iii. Refer Note 50 for information on other intangible assets pledged as security by the Company.

5C. Intangible assets under development:

The changes in the carrying value of intangible assets under development for the year ended 31 December 2024
and 31 December 2023 are as follows :

(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2024 -
Additions for the year 43.69
Transfer to intangible assets -
Balance as at 31 December 2024 43.69

(` in million)
Amount
Gross carrying amount
Balance as at 01 January 2023 -
Additions for the year -
Transfer to intangible assets -
Balance as at 31 December 2023 -

Footnotes to Note 5C:

(i) Intangible assets under development ageing schedule
(` in million)
Particulars Amount in intangible assets under development for a period of
Less than 1-2 years 2-3 years More than Total
1 year 3 years
Projects in progress
As at 31 December 2024 43.69 - - - 43.69
As at 31 December 2023 - - - - -

There are no projects as on each reporting period where activity has been suspended. Also, there are no projects
as on each reporting period which has exceeded cost as compared to its original plan or where completion is
overdue.

Annual Report 2024 375

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
6. Investments
(` in million)
As at As at
31 December 2024 31 December 2023
Investment in equity shares of subsidiaries (at cost) (unquoted)
17,392,760 (31 December 2023: 17,392,760) fully paid equity shares 6,179.18 6,179.18
of MAD 50 each in Varun Beverages Morocco SA^
643,853,670 (31 December 2023: 643,853,670) fully paid equity 3,149.55 3,149.55
shares of LKR 10 each in Varun Beverages Lanka (Private) Limited
2,001,500 (31 December 2023: 2,001,500) fully paid equity shares of 1,423.91 1423.91
NPR 1,000 each in Varun Beverages (Nepal) Private Limited*
18,710,100 (31 December 2023: 18,710,100) fully paid equity shares of 3,231.01 3,231.01
ZMW 10 each in Varun Beverages (Zambia) Limited^
935 (31 December 2023: 935) fully paid equity shares of USD 1 each 0.06 0.06
in Varun Beverages (Zimbabwe) (Private) Limited
995,010 (31 December 2023: 597,645) fully paid equity shares of ` 10 2,262.94 262.94
each in Lunarmech Technologies Private Limited#^
999 (31 December 2023: 999) fully paid equity shares of USD 10 0.74 0.74
each in Varun Beverages RDC SAS
1,000 (31 December 2023: 1,000) fully paid equity shares of AED 20.68 20.68
1,000 each in Varun Beverages International DMCC
1,000 (31 December 2023: 1,000) fully paid equity shares of ZAR 10 0.05 0.05
each in Varun Beverages South Africa (PTY) Ltd.$
2,018,674 (31 December 2023: Nil) fully paid equity shares in The 4,037.26 -
Beverage Company Proprietary Limited.## ^
9,900 (31 December 2023: Nil) fully paid equity shares of MZN 100 1.32 -
each in VBL Mozambique, SA ^%
10,000 (31 December 2023: Nil) fully paid shares of USD 1 each in 0.84 -
Varun Foods Zimbabwe (Private) Limited^^^
Deemed investment (Refer note 43B) 37.93 15.75
Investment in equity shares of associates (at cost) (unquoted)
21,030 (31 December 2023: 21,030 ) fully paid equity shares of ` 10 32.85 32.85
each in Clean Max Tav Private Limited@
1,247,943 (31 December 2023: 1,247,943) fully paid equity shares of 21.24 21.24
` 10 each in Huoban Energy 7 Private Limited^^
Investment in equity shares of joint ventures (at cost) (unquoted)
50,000,000 (31 December 2023: 13,007,000) fully paid equity 500.00 130.07
shares of ` 10 each in IDVB Recycling Operations Private Limited~
Investment in others in fully paid equity shares (FVTPL, unquoted)
200 (31 December 2023: 200) shares of ` 50 each in The Margao 0.01 0.01
Urban Co-operative Bank Limited
250 (31 December 2023: 250) shares of ` 10 each in The Goa Urban 0.00 0.00
Co-operative Bank Limited**
3,150,000 (31 December 2023: 3,150,000) fully paid equity shares of 31.50 31.50
` 10 each in Lone Cypress Ventures Private Limited@@
958,415 (31 December 2023: Nil) fully paid equity shares of ` 10 each 29.04 -
in Huoban Energy 11 Private Limited
20,960.11 14,499.54
Aggregate amount of unquoted investments 20,960.11 14,499.54

376 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
6. Investments [Cont’d]
**Rounded off to Nil.
* The Company had subscribed 370,370 equity shares of Varun Beverages (Nepal) Private Limited amounting to ` 625.00 million
on 18 May 2023 and Varun Beverages (Nepal) Private Limited on 24 December 2023 allotted 551,130 equity shares as bonus
shares of NPR 1,000 each to its existing shareholder.
#The Company had acquired 50,000 equity shares of Lunarmech Technologies Private Limited amounting to ` 100.00 million on
16 October 2023. Further on 16 December 2024 Company has acquired 39.93% of the issued and paid-up Equity Share Capital
and accordingly, it has become wholly-owned subsidiary.
$The Company had made equity investment in Varun Beverages South Africa (PTY) Ltd. amounting to ` 0.05 million on 23
May 2023.
~The Company had subscribed the equity investment of IDVB Recycling Operations Private Limited amounting to ` 369.93 (31
December 2023: ` 120.00 million) and loan given amounting to ` 10.00 million were converted into equity investment on 25
September 2023.
@The Company had made investment in Clean Max Tav Private Limited amounting to ` 3.28 million and ` 29.54 million on 27
January 2023 and 13 March 2023 respectively.
^^The Company had made equity investment in Huoban Energy 7 Private Limited amounting to ` 21.24 million on 09 May 2023.
@@The Company had made equity investment in Lone Cypress Ventures Private Limited amounting to ` 31.50 million on 13
March 2023.
^% The Company had incorporated VBL Mozambique, SA, a subsidiary on 21 November 2023, and consideration for 99% share
capital has been transferred on 31 January 2024
^^^The Company has incorporated Varun Foods Zimbabwe (Private ) Limited, a wholly owned subsidiary on 22 May 2024.
## The Company acquired 95% stake of The Beverage Company Proprietary Limited amounting to ` 4,037.26 million on 26
March 2024

P
The Company has made equity investment in Huoban Energy 11 Private Limited amounting to ` 29.04 million on 28
August 2024.
^These investments were tested for impairment in accordance with Ind AS 36 “Impairment of Assets” concluding no impairment
to the carrying values.
Refer note 51 for information required under Section 186 (4) of the Companies Act, 2013.
Information about investments along with proportion of ownership interest held and country of incorporation
are as follows:
Name of the company/entity Country of Proportion of ownership interests held
incorporation by the Company at year end
and principal
place of As at As at
business 31 December 2024 31 December 2023
Varun Beverages (Nepal) Private Limited ('VBL Nepal') Nepal 100.00% 100.00%
Varun Beverages Lanka (Private) Limited ('VBL Lanka') Sri Lanka 100.00% 100.00%
Varun Beverages Morocco SA ('VBL Morocco') Morocco 100.00% 100.00%
Ole Spring Bottlers (Private) Limited ('Ole')* Sri Lanka 100.00% 100.00%
Varun Beverages (Zambia) Limited ('VBL Zambia') Zambia 90.00% 90.00%
Varun Beverages (Zimbabwe) (Private) Limited Zimbabwe 85.00% 85.00%
('VBL Zimbabwe')
Varun Beverages RDC SAS Congo 99.90% 99.90%
Lunarmech Technologies Private Limited~~ India 100.00% 60.07%
Varun Beverages International DMCC Dubai 100.00% 100.00%
IDVB Recycling Operations Private Limited India 50.00% 50.00%
Clean Max Tav Private Limited India 26.00% 26.00%
Huoban Energy 7 Private Limited@ India 26.34% 26.34%
Varun Beverages South Africa (PTY) Ltd.# South Africa 100.00% 100.00%

Annual Report 2024 377

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
Name of the company/entity Country of Proportion of ownership interests held
incorporation by the Company at year end
and principal
place of As at As at
business 31 December 2024 31 December 2023
VBL Mozambique, SA^^ Mozambique 99.00% 99.00%
The Beverage Company Proprietary Limited ('Bevco')## South Africa 95.00% -
The Beverage Company Bidco Proprietary Limited$## South Africa 95.00% -
Little Green Beverages Proprietary Limited$## South Africa 95.00% -
Softbev Proprietary Limited$## South Africa 95.00% -
Varun Foods Zimbabwe (Private ) Limited^^^ Zimbabwe 100.00% -
*subsidiary of VBL Lanka
@w.e.f. 09 May 2023
#w.e.f. 23 May 2023
^^Subsidiary incorporated on 21 November 2023, 99% share capital subscribed on 31 January 2024
##Acquired on 26 March 2024
^^^Wholly owned subsidiary incorporated on 22 May 2024, 100% share capital subscribed on 22 May 2024
~~Wholly owned subsidiary w.e.f. 16 December 2024
$subsidiary of Bevco

7. Loans
(` in million)
As at As at
31 December 2024 31 December 2023
Loans carried at amortised cost
Loans to related parties, considered good - Unsecured 14,856.27 6,999.39
14,856.27 6,999.39
Loans to subsidiaries:-
Varun Beverages (Zimbabwe) (Private) Limited 466.65 984.10
Varun Beverages (Zambia) Limited# 826.71 802.51
Varun Beverages Morocco SA# 1,110.25 1,077.74
Varun Beverages RDC SAS 5,655.41 2,123.62
Varun Beverages International DMCC 3,844.48 2,011.42
The Beverage Company Proprietary Limited# 2,952.77 -
#The loans granted were tested for impairment in accordance with Ind AS 109 concluding no impairment to the carrying values.
Refer note 51 for information required under Section 186 (4) of the Companies Act, 2013.
There are no loans and advances in the nature of loans granted to promoters, directors, key managerial personnel and related
parties (as defined under Companies Act, 2013) that are either repayable on demand or without specifying any terms or period
of repayment.

8. Other non-current financial asset

(` in million)
As at As at
31 December 2024 31 December 2023
Financial asset at amortised cost
Security deposits 744.84 519.83
Balance in deposit accounts with remaining maturity of more than 9.61 10.49
12 months#
Others 47.64 34.53
802.09 564.85
#Includes deposits pledged as security with banks for utility services.

378 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
9. Other non-current assets
(` in million)
As at As at
31 December 2024 31 December 2023
(Unsecured, considered good)
Capital advances 3,281.12 3,375.94
Advances other than capital advances
- Income tax paid (includes amount paid under protest) 16.42 10.42
- Balance with statutory authorities (paid under protest) 107.93 117.21
- Prepaid expenses 24.03 33.89
3,429.50 3,537.46

10. Inventories
(` in million)
As at As at
31 December 2024 31 December 2023
(Valued at lower of cost or net realisable value)
Raw and packing material (including goods in transit of ` 212.81 (31 7,469.37 5,905.76
December 2023: ` 231.47 )
Work in progress 71.25 24.55
Intermediate goods (including goods in transit of ` 220.55 (31 3,887.77 4,153.40
December 2023: ` 232.21))
Finished goods (including goods in transit of ` 178.06 (31 December 2,809.45 2,985.94
2023: ` 0.92))*
Stores and spares 2,649.21 2,289.09
16,887.05 15,358.74
*The Company manufactures as well as purchases the same product from market for sale and is also involved in trading of other
products of capital nature. In the absence of demarcation between manufactured and purchased goods and the value of stock
in trade being insignificant, it is not separately ascertainable and disclosed.
The cost of inventories recognised as an expense during the year is disclosed in Note 29, Note 30, Note 31 and Note 35.
11. Trade receivables
(` in million)
As at As at
31 December 2024 31 December 2023
Trade receivables, considered good - Unsecured 1,965.01 2,106.55
Trade receivables, considered good - Secured 32.62 22.87
Trade receivables - Credit impaired 289.82 286.72
2,287.45 2,416.14
Less : Allowance for expected credit loss (Refer note 52.2) (289.82) (286.72)
1,997.63 2,129.42
Includes amounts due, in the ordinary course of business, from subsidiaries:
Varun Beverages (Zambia) Limited 96.66 51.21
Varun Beverages Zimbabwe (Private) Limited 210.44 567.08
Varun Beverages (Nepal) Private Limited 7.39 11.19
Lunarmech Technologies Private Limited 18.90 9.64
Varun Beverages Lanka (Private) Limited 55.21 50.79
Varun Beverages RDC SAS - 60.34
Includes amounts due, in the ordinary course of business, from
companies in which directors of the Company are also directors:
Alisha Torrent Closures Private Limited 4.29 0.00*
*Rounded off to Nil.
Trade receivables are non-interest bearing and credit period generally falls in the range of 0 to 120 days.
 o trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other
N
person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner,
a director or a member, except as disclosed above.

Annual Report 2024 379

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
Trade receivables ageing schedule
31 December 2024
(` in million)
Particulars Outstanding from date of transactions
Less than 6 Months- 1-2 Years 2-3 Years More than Total
6 months 1 Year 3 years
Undisputed Trade Receivables – 1,967.73 29.90 - - - 1,997.63
considered good
Undisputed Trade Receivables – which - - - - - -
have significant increase in credit risk
Undisputed Trade receivables – credit 8.49 26.23 3.72 4.93 57.60 100.97
impaired
Disputed Trade receivables - - - - - - -
considered good
Disputed Trade receivables – which - - - - - -
have significant increase in credit risk
Disputed Trade receivables – credit 0.45 2.72 8.50 33.16 144.02 188.85
impaired
Total 1,976.67 58.85 12.22 38.09 201.62 2,287.45

31 December 2023
(` in million)
Particulars Outstanding from date of transactions
Less than 6 Months- 1-2 Years 2-3 Years More than Total
6 months 1 Year 3 years
Undisputed Trade Receivables – 2,129.42 - - - - 2,129.42
considered good
Undisputed Trade Receivables – which - - - - - -
have significant increase in credit risk
Undisputed Trade receivables – credit 15.40 3.20 8.24 3.00 80.31 110.15
impaired
Disputed Trade receivables - - - - - - -
considered good
Disputed Trade receivables – which - - - - - -
have significant increase in credit risk
Disputed Trade receivables – credit - 3.10 3.03 24.51 145.93 176.57
impaired
Total 2,144.82 6.30 11.27 27.51 226.24 2,416.14

12. Cash and cash equivalents

(also for the purpose of Standalone Statement of Cash Flow)
(` in million)
As at As at
31 December 2024 31 December 2023
Balance with banks in current accounts* 501.10 472.76
Balance in deposits with original maturity of less than three months# 18,630.11 19.68
Balances with banks in QIP monitoring accounts# 125.02 -
Cash on hand 5.36 2.36
Investment in liquid fund# 1,319.21 -
20,580.80 494.80
* Includes inward remittance not yet cleared amounting to ` 25.86 million (31 December 2023: ` 3.80 million)
#Includes balance of qualified institutional placement (QIP) proceeds of ` 20,055.02 Million, which will be utilised for the purpose
as stated in the preliminary placement document for QIP. Net unutilised proceeds from QIP as on 31 December 2024 have been
temporarily invested and kept in fixed deposits of ` 18,630.00 Million, mutual fund of ` 1,300.00 Million and QIP monitoring
account for ` 125.02 Million. (Refer Note 59)

380 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
13. Bank balances other than cash and cash equivalents
(` in million)
As at As at
31 December 2024 31 December 2023
Deposits with original maturity more than 3 months but less than 12 4.96 2.04
months*
Unpaid dividend account** 1.32 0.97
Deposits with bank held as margin money - 25.28
6.28 28.29
*Includes deposits pledged as security with banks for statutory authority.
**These balances are not available for use by the Company and corresponding balance is disclosed as unclaimed dividend in
note 24.

14. Loans
(` in million)
As at As at
31 December 2024 31 December 2023
Loans carried at amortised cost
Loans to related party, considered good - Unsecured* 547.13 -
547.13 -
*Loans to a subsidiary, in the ordinary course of business

Varun Beverages (Zimbabwe) (Private) Limited 547.13 -

Refer note 51 for information required under Section 186 (4) of the Companies Act, 2013.

15. Other current financial assets

(` in million)
As at As at
31 December 2024 31 December 2023
(Unsecured, considered good)
Interest accrued on:
- Loan to subsidiaries* 1,106.48 500.00
- Term deposits 137.81 0.13
- Others 30.88 18.47
Security deposits 140.03 136.18
Dividend receivable** 949.82 387.15
Guarantee commission receivable# 32.97 20.58
Advances to employees~ 82.77 106.25
Government grants receivable$ 7,110.08 6,002.38
Claims receivables 134.54 481.63
Other receivables^ 47.16 42.25
9,772.54 7,695.02
*Amounts due from subsidiaries
Varun Beverages (Zambia) Limited 132.19 76.02
Varun Beverages (Zimbabwe) (Private) Limited 181.57 104.99
Varun Beverages Morocco SA 54.05 110.24

Annual Report 2024 381

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
As at As at
31 December 2024 31 December 2023
Varun Beverages RDC SAS 118.49 25.91
Varun Beverages International DMCC 383.53 182.84
The Beverage Company Proprietary Limited 236.65 -
1,106.48 500.00
**Amount due from a subsidiary, namely, Varun Beverages (Nepal) 949.82 387.15
Private Limited
#Amounts due from subsidiaries:
Varun Beverages Morocco SA 0.04 0.04
Varun Beverages (Zimbabwe) (Private) Limited 0.86 12.36
Varun Beverages International DMCC 6.98 4.05
Varun Beverages RDC SAS 3.96 3.08
Varun Beverages Lanka (Private) Limited 0.58 0.52
The Beverage Company Proprietary Limited 18.83 -
Varun Beverages (Zambia) Limited 1.72 0.53
32.97 20.58
^Includes amounts due from subsidiaries:
Varun Beverages Morocco SA 3.92 0.73
Varun Beverages (Zambia) Limited 2.64 1.06
Varun Beverages Lanka (Private) Limited 3.62 1.29
Varun Beverages (Zimbabwe) (Private) Limited 8.03 1.21
Varun Beverages (Nepal) Private Limited 1.13 0.79
Varun Beverages International DMCC 0.15 0.09
The Beverage Company Proprietary Limited 1.58 -
Varun Beverages RDC SAS 0.90 0.03
21.97 5.20
~Advance given to key management personnel: (Refer Note 43A) 0.76 38.50
$ Net of provision amounting to ` 236.45 (31 December 2023: Nil)

16. Other current assets

(` in million)
As at As at
31 December 2024 31 December 2023
(Unsecured, considered good)
Security deposits 10.10 10.36
Advance to related party* 50.92 66.75
Other advances :
- Contractors and suppliers 647.46 664.52
- Prepaid expenses 225.63 229.91
- Balance with statutory/government authorities 2,587.43 2,595.59
- Other advances 67.51 77.87
3,589.05 3,645.00
*Amounts due, in the ordinary course of business, from related party:
SMV Beverages Private Limited 50.92 66.75

382 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
17. Equity share capital
(` in million)
As at As at
31 December 2024 31 December 2023
Authorised share capital:
5,000,000,000 equity shares of `2 each (31 December 2023: 10,000.00 10,000.00
2000,000,000 equity shares of ` 5 each)
10,000.00 10,000.00
Issued, subscribed and fully paid up:
3,381,510,017 equity shares of ` 2 each (31 December 2023: 6,763.02 6,496.07
1,299,214,976 equity shares of ` 5 each)
6,763.02 6,496.07

a) Reconciliation of share capital

(` in million)
Particular No. of shares Amount
Balance as at 01 January 2024 1,299,214,976 6,496.07
Add: Shares issued of `5 each pursuant to exercise of 233,436 1.17
employee stock options
Add: Sub-division/split of 1 share of face value ` 5 each into such 1,949,172,618 -
number share of face value ` 2 each effective 12 September 2024
(Increase in shares on account of sub-division/split) (Refer note
(g) below)
Add: Shares issued of ` 2 each pursuant to Qualified institutions 132,743,362 265.49
placement (QIP) (Refer note 59)
Add: Shares issued of ` 2 each pursuant to exercise of employee 145,625 0.29
stock options
Balance as at 31 December 2024 3,381,510,017 6,763.02

(` in million)
Particular No. of shares Amount
Balance as at 01 January 2023 649,549,620 6,495.50
Add: Shares issued of ` 10 each pursuant to exercise of 8,412 0.08
employee stock options
Add: Sub-division/split of 1 share of face value ` 10/- each 649,558,032 -
into 2 share of face value ` 5/- each effective 15 June 2023
(Increase in shares on account of sub-division/split) (Refer
note (g) below)
Add: Shares issued of ` 5 each pursuant to exercise of employee 98,912 0.49
stock options
Balance as at 31 December 2023 1,299,214,976 6,496.07

b) Terms/rights attached to shares

The Company has only one class of equity shares having a par value of ` 2 each. Each holder of equity share
is entitled to one vote per share. In the event of liquidation of the Company, holders of equity shares will be
entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by the shareholders. The dividend,
if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting.

Annual Report 2024 383

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
c) List of shareholders holding more than 5% of the aggregate equity share capital of the Company at
the beginning and at the end of the year:

Shareholders as at 31 December 2024 No. of shares % of shareholding

(face value of ` 2 each)
RJ Corp Limited 868,877,060 25.69%
Mr. Ravi Kant Jaipuria 564,736,222 16.70%
Mr. Varun Jaipuria 520,859,870 15.40%

Shareholders as at 31 December 2023 No. of shares % of shareholding

(face value of ` 5 each)
RJ Corp Limited 349,750,824 26.92%
Mr. Ravi Kant Jaipuria 229,104,059 17.63%
Mr. Varun Jaipuria 208,343,948 16.04%

As per records of the Company, including its register of shareholders/members and other declaration
received from the shareholders regarding beneficial interest, the above shareholding represents both legal
and beneficial ownerships of shares.

d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and
shares bought back during the period of five years immediately preceding the reporting date
(i) During the year ended 31 December 2019, the Company has issued 91,327,613 equity shares of ` 10
each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every 2 (Two) equity share
outstanding on record date.

(ii) During the year ended 31 December 2021, the Company has issued 144,344,360 equity shares of `10
each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every 2 (Two) equity share
outstanding on record date.

(iii) During the year ended 31 December 2022, the Company has issued 216,516,540 equity shares of `10
each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every 2 (Two) equity share
outstanding on record date.
For the period of five years of the date of the immediately preceding the reporting date, there was no
share allotment made for consideration other than cash except as disclosed above. Further, there has been
no buy back of shares during the period of five years immediately preceding 31 December 2024 and 31
December 2023.

e) Shares held by holding and ultimate holding company

(` in million)
As at As at
31 December 2024 31 December 2023
RJ Corp Limited, Parent company* 1,737.75 1,748.75
868,877,060 fully paid-up equity shares of ` 2 each
(31 December 2023: 349,750,824 fully paid-up equity shares of
` 5 each)
1,737.75 1,748.75
*as defined under Ind AS 110 - Consolidated Financial Statements.

384 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
17. Equity share capital [Cont’d]
f) Details of shares held by promoters:

Shareholders as at 31 December 2024 No. of shares % of shareholding % change during

(face value of ` 2 each) the year
RJ Corp Limited 868,877,060 25.69% (1.23%)
Mr. Ravi Kant Jaipuria 564,736,222 16.70% (0.93%)
Mr. Varun Jaipuria 520,859,870 15.40% (0.64%)

Shareholders as at 31 December 2023 No. of shares % of shareholding % change during

(face value of ` 5 each) the year
RJ Corp Limited 349,750,824 26.92% (0.47%)
Mr. Ravi Kant Jaipuria 229,104,059 17.63% (0.34%)
Mr. Varun Jaipuria 208,343,948 16.04% 0.00%

g) Sub-division/split of equity shares

i) During the year ended 31 December 2024,the Board of Directors of the Company in their meeting held on
30 July 2024 recommended the sub-division/split of existing Equity Shares of the Company from 1 (One)
Equity Share having face value of ` 5/- (Rupees Five only) each fully paid-up, into such number Equity
Shares having face value of ` 2/- (Rupees Two only) each fully paid-up. The above sub-division/split has
been approved by the equity shareholders of the Company dated 30 August 2024 through postal ballot.
Pursuant to sub-division/split of shares effective 12 September 2024 (“Record Date”), the paid up equity
share capital of the Company is ` 6,497.24 consisting of 3,248,621,030 equity shares having face value of
` 2/- (Rupees two only) each fully paid-up.
ii) During the year ended 31 December 2023, the Board of Directors of the Company in their meeting held on
02 May 2023 recommended the sub-division/split of existing Equity Shares of the Company from 1 (One)
Equity Share having face value of ` 10/- (Rupees Ten only) each fully paid-up, into 2 (Two) Equity Shares
having face value of ` 5/- (Rupees Five only) each fully paid-up. The above sub-division/split has been
approved by the equity shareholders of the Company dated 02 June 2023 through postal ballot. Pursuant
to sub-division/split of shares effective 15 June 2023 (“Record Date”), the paid up equity share capital of
the Company is ` 6,495.58 consisting of 1,299,116,064 equity shares having face value of ` 5/- (Rupees
Five only) each fully paid-up.

h) Pursuant to QIP the Company has issued 132,743,362 equity shares of ` 2 each at a premium of ` 563 per share:
(Refer note 59)
(` in million)
Date of allotment Share capital Securities premium Total
19 November 2024 265.49 74,734.51 75,000.00
18. Other equity
Refer Standalone Statement of Changes in Equity for detailed movement in Other Equity balance.
(` in million)
As at As at
31 December 2024 31 December 2023
Capital reserve 533.93 533.93
Share option outstanding account 184.70 84.99
Securities premium 96,939.28 22,636.59
General reserve 444.26 444.26
Retained earnings 60,721.86 40,558.69
Share application money pending allotment - 3.51
158,824.03 64,261.97

Annual Report 2024 385

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
Description of nature and purpose of each reserve:
Capital reserve - Created on merger of Varun Beverages (International) Limited with the Company pursuant to
and in accordance with the Court approved scheme of amalgamation. Includes gain from bargain purchases.
General reserve - Created by way of transfer from debenture redemption reserve on redemption of debentures.
Securities premium - Created to record the premium on issue of shares. The reserve is utilised in accordance with
the provisions of the Act.
Retained earnings - Created from the profit of the Company, as adjusted for distributions to owners, transfers to other
reserves, etc.
Share option outstanding account - Created to recognise the grant date fair value of options issued to employees
under the employee stock option schemes and is adjusted on exercise / forfeiture of options.
Share application money pending allotment - Created to record the amount of money received for the purpose
of allotment of equity share of the company pending at the reporting date. It will be utilised in accordance with
the provisions of the Companies Act, 2013 upon issuance of equity shares.

19. Borrowings
A. Non-current borrowings:
(` in million)
As at As at
31 December 2024 31 December 2023
Term loans (secured) (Refer note 19E)
- Indian rupee loan from banks 1,181.43 29,658.63
- Indian rupee loan from others 260.67 446.86
1,442.10 30,105.49
Loans and borrowing above are recognised at amortised cost/fair value taking into account any discount or
premium on acquisition and fee or costs that are part of effective interest rate, accordingly the outstanding
balances above may not necessarily reconcile with repayment amounts.

B. Current borrowings:
(` in million)
As at As at
31 December 2024 31 December 2023
Loans repayable on demand
- Working capital facilities from banks (secured) (Refer 2,433.42 4,805.00
footnote (a))
- Working capital facilities from banks (unsecured) (Refer 1,800.00 2,450.00
footnote (b))
Working capital facility from banks (unsecured) (Refer footnote (c)) 1,450.00 500.00
Current maturities of long-term debts 1,189.89 9,740.56
6,873.31 17,495.56

(a) Working capital facilities from banks are secured by first charge on entire current assets of the Company
ranking pari-passu amongst the banks and second charge on the movable and immovable assets of the
Company pertaining to specific manufacturing units (wherever applicable). During the previous year, one
short term loan facility from a bank was secured by subservient charge over entire current assets and movable
fixed assets (both present and future) of the Company. These facilities carry interest rates ranging between
7.10% to 7.53 % (31 December 2023: 7.45% to 7.76%).

(b) Working capital facilities from banks carrying interest rates 7.16% per annum (31 December 2023: 7.70% to
7.72% per annum).

386 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
19. Borrowings [Cont’d]
(c) Working capital facility from a bank carrying interest rate 7.15% per annum is repayable in two equal instalments
from the date of disbursement. During the previous year working capital facility from a bank carrying interest
rate 7.76% per annum is repayable in three equal instalments from the date of disbursement and was repaid
during the year.

There are no defaults in repayment of principal borrowings or interest there on.

C. Other non-current financial liabilities:

(` in million)
As at As at
31 December 2024 31 December 2023
Lease liabilities (Refer note 44) 419.61 1,043.65
419.61 1,043.65

D. Current financial liabilities:

(` in million)
As at As at
31 December 2024 31 December 2023
Lease liabilities (Refer note 44) 77.10 176.29
77.10 176.29

E. Terms and conditions/details of securities for loans:

(` in million)
Name of the bank/instrument Loan outstanding
31 December 2024 31 December 2023
Non-current Current Non-current Current
Term loans
i) Indian rupee loan from banks (secured)
Loans carrying weighted average rate of interest 1,181.43 547.17 29,283.63 8,068.46
7.56% (31 December 2023: 8.01%) depending
upon tenure of the loans.
For repayment terms refer note 19F.
These loans are secured on first pari-passu charge
on the entire movable and immovable property,
plant and equipment of the Company including
the territory /franchisee rights acquired under the
business acquisition except vehicles and lands for
which no mortgages have been created till date.

ii) Indian rupee loan from banks (secured)

Loans carrying weighted average rate of interest - - - 800.00
Nil (31 December 2023: 7.40%) depending upon
tenure of the loans.
For repayment terms refer note 19F.
These loans are secured with subservient charge
on movable fixed assets of the Company and
one facility during the previous year was further
secured with first pari passu charge on the
inventories and receivables of the Company.

Annual Report 2024 387

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
Name of the bank/instrument Loan outstanding
31 December 2024 31 December 2023
Non-current Current Non-current Current
iii) Indian rupee loan from banks (secured)
Loans carrying rate of interest 7.95 % (31 - 375.00 375.00 541.67
December 2023: 7.95%) depending upon tenure
of the loans.
For repayment terms refer note 19F.
These loans are secured on first pari-passu charge
on the entire movable assets of the Company
including the territory /franchisee rights acquired
under the business acquisition except vehicles.

1,181.43 922.17 29,658.63 9,410.13

iv) Indian rupee loan from others (secured)
Interest free loans from The Pradeshiya Industrial 176.18 201.53 308.20 166.87
& Investment Corporation of U.P. Limited are
repayable in one instalment after expiry of seven
years from the date of disbursement. Loans are
secured against bank guarantee equivalent to
100% of loan amount valid up to the repayment
date of loan plus six months grace period.
The loans are recognised at amortised cost basis
using weighted average rate of borrowing on date
of receipt, i.e., 7.63%-8.77% (31 December 2023:
8.52%-9.72%)
Date of repayment Amount
01 November 2025 211.98
31 March 2030 65.90
07 July 2030 139.92
22 February 2031 22.87
01 October 2031 46.59
Interest free loan from The Director of Industries 84.49 66.19 138.66 163.56
and Commerce, Haryana are repayable in one
instalment after expiry of five years from the date
of disbursement. Loans are secured against bank
guarantee equivalent to 100% of loan amount
valid up to the repayment date of loan plus six
months grace period.
The loans are recognised at amortised cost basis
using weighted average rate of borrowing on date
of receipt, i.e., 8.33% (31 December 2023: 8.33%)
The repayment schedule is as under:
Date of repayment Amount
17 February 2025 43.98
13 October 2025 23.96
21 February 2027 70.83
18 July 2028 33.30
260.67 267.72 446.86 330.43
Total 1,442.10 1,189.89 30,105.49 9,740.56

388 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
F. Repayment terms:
(` in million)
S.No Description 31 December 2024 31 December 2023 Repayment terms
Non-current Current Non-current Current
1 Term loan - 1 - - - 240.00 Loan was repaid during the year
2 Term loan - 2 - - 291.49 291.80 Loan was repaid during the year
3 Term loan - 3 - - 499.32 500.00 Loan was repaid during the year
4 Term loan - 4 - - 200.00 200.00 Loan was repaid during the year
5 Term loan - 5 - - 199.73 200.00 Loan was repaid during the year
6 Term loan - 6 - - 699.75 400.00 Loan was repaid during the year
7 Term loan - 7 560.28 317.77 1,050.00 380.00 Two instalments of ` 158.89 each
due in May 2025 and June 2025, two
instalments of ` 154.70 each due in
May 2026 and June 2026 and two
instalments of ` 125.44 each due in
May 2027 and June 2027.
8 Term loan - 8 - - - 800.00 Loan was repaid during the year
9 Term loan - 9 - - 1,600.00 500.00 Loan was repaid during the year
10 Term loan - 10 - - 1,350.00 300.00 Loan was repaid during the year
11 Term loan - 11 - - 1,333.34 666.66 Loan was repaid during the year
12 Term loan - 12 282.65 141.32 3,750.00 1,250.00 Two instalments of ` 70.66 each due
in May 2025 and June 2025, two
instalments of ` 70.66 each due in
May 2026 and June 2026 and two
instalments of ` 70.66 each due in
May 2027 and June 2027.
13 Term loan - 13 - 375.00 375.00 375.00 Two instalments of ` 187.50 each due
in May 2025 and June 2025.
14 Term loan - 14 - - - 166.67 Loan was repaid during the year
15 Term loan - 15 - - 2,000.00 1,000.00 Loan was repaid during the year
16 Term loan - 16 170.50 46.08 2,350.00 100.00 Two instalments of ` 23.04 each
due in May 2025 and June 2025,
two instalments of ` 23.04 each
due in May 2026 and June 2026,
two instalments of ` 32.26 each due
in May 2027 and June 2027,one
instalment of ` 32.26 due in May 2028
and one instalment of ` 27.65 due in
June 2028.
17 Term loan - 17 - - 2,400.00 600.00 Loan was repaid during the year
18 Term loan - 18 - - 1,900.00 100.00 Loan was repaid during the year
19 Term loan - 19 - - 750.00 250.00 Loan was repaid during the year
20 Term loan - 20 - - 3,150.00 350.00 Loan was repaid during the year
21 Term loan - 21 - - 2,760.00 240.00 Loan was repaid during the year
22 Term loan - 22 - - 1,500.00 - Loan was repaid during the year

Annual Report 2024 389

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
S.No Description 31 December 2024 31 December 2023 Repayment terms
Non-current Current Non-current Current

23 Term loan - 23 - - 1,500.00 500.00 Loan was repaid during the year

24 Term loan - 24 168.00 42.00 - - Two instalments of ` 21.00 each

due in May 2025 and June 2025,
two instalments of ` 21.00 each
due in May 2026 and June 2026,
two instalments of ` 21.00 each due
in May 2027 and June 2027, two
instalments of ` 21.00 each due in
May 2028 and June 2028 and two
instalments of ` 21.00 each due in
May 2029 and June 2029

1,181.43 922.17 29,658.63 9,410.13

20. Provisions
(` in million)
As at As at
31 December 2024 31 December 2023
Non-current
Provision for employee benefits (Refer note 37)
Defined benefit liability (net) 1,089.24 1,417.19
Other long term employee obligations 687.76 639.07
1,777.00 2,056.26
Current
Provision for employee benefits (Refer note 37)
Other short term employee obligations 353.82 311.98
Others (Refer note 56) 294.12 503.72
647.94 815.70

390 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
21. Deferred tax assets and liabilities
Deferred taxes arising from temporary differences and unused tax losses are summarised as follows:
(` in million)
Deferred tax liabilities/(assets) As at Recognised Recognised As at
01 January in other in Statement 31 December
2024 comprehensive of Profit and 2024
income** Loss
Accelerated depreciation for tax purposes 3,844.81 - 702.14 4,546.95
Allowance for doubtful debts (72.16) - (0.77) (72.93)
Accrued bonus (44.51) - (10.31) (54.82)
Fair valuation of financial instruments (25.87) - 3.14 (22.73)
Provision for retirement benefits (501.96) 69.98 (37.34) (469.32)
Borrowings (0.65) - 0.49 (0.16)
Benefit accrued on government grants 74.45 - (6.96) 67.49
Others (140.78) - (20.22) (161.00)
3,133.33 69.98 630.16 3,833.51

(` in million)
Deferred tax liabilities/(assets) As at Recognised Recognised in As at
01 January in other Statement of 31 December
2023 comprehensive Profit and Loss 2023
income**
Accelerated depreciation for tax purposes 3,701.97 - 142.84 3,844.81
Allowance for doubtful debts (72.74) - 0.58 (72.16)
Accrued bonus (47.50) - 2.99 (44.51)
Fair valuation of financial instruments (15.22) - (10.65) (25.87)
Provision for retirement benefits (474.70) (6.99) (20.27) (501.96)
Borrowings (1.00) - 0.35 (0.65)
Benefit accrued on government grants 96.59 - (22.14) 74.45
Others 12.44 - (153.22) (140.78)
3,199.84 (6.99) (59.52) 3,133.33

*The amounts recognised in other comprehensive income relate to the re-measurement of net defined retirement
benefit liability. Refer note 36 for the amount of the income tax relating to these components of other comprehensive
income.

All significant deferred tax assets have been recognised in the balance sheet.

22. Other non-current liabilities

(` in million)
As at As at
31 December 2024 31 December 2023
Deferred revenue on government grant 4.37 5.16
Deferred income 42.94 63.24
47.31 68.40

Annual Report 2024 391

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
23. Trade payables
(` in million)
As at As at
31 December 2024 31 December 2023
Total outstanding dues of-
Micro enterprises and small enterprises (Refer note 46) 640.19 767.25
Creditors other than micro enterprises and small enterprises 4,938.09 4,151.36
5,578.28 4,918.61

Trade payables ageing schedule

31 December 2024
(` in million)
Particulars Outstanding from date of transactions
Unbilled Less than 1-2 Years 2-3 Years More than Total
1 year 3 years
Undisputed trade payable
Micro enterprises and small enterprises 113.98 522.65 2.88 0.25 0.43 640.19
Others 1,377.72 3,438.30 19.83 5.03 14.10 4,854.98
Disputed trade payable
Micro enterprises and small enterprises - - - - - -
Others - 52.40 12.01 8.85 9.85 83.11
Total 1,491.70 4,013.35 34.72 14.13 24.38 5,578.28

Trade payables ageing schedule

31 December 2023
(` in million)
Particulars Outstanding from date of transactions
Unbilled Less than 1-2 Years 2-3 Years More than Total
1 year 3 years
Undisputed trade payable
Micro enterprises and small enterprises 68.73 692.13 5.34 0.36 0.50 767.06
Others 1,519.74 2,470.47 65.62 10.19 6.00 4,072.02
Disputed trade payable
Micro enterprises and small enterprises - 0.19 - - - 0.19
Others - 52.46 13.18 6.95 6.75 79.34
Total 1,588.47 3,215.25 84.14 17.50 13.25 4,918.61

24. Other current financial liabilities

(` in million)
As at As at
31 December 2024 31 December 2023
Interest accrued but not due on borrowings 5.55 80.40
Interest payable 48.59 27.21
Payable for capital expenditure 3,088.65 4,064.96
Employee related payables 813.94 705.62
Unclaimed dividends# 1.32 0.97
Security deposits 1,924.95 1,799.54
5,883.00 6,678.70
#Not due for deposit to the Investor Education and Protection Fund.

392 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
25. Other current liabilities
(` in million)
As at As at
31 December 2024 31 December 2023
Advance from customers* 1,417.35 1,725.58
Statutory dues payable 703.84 743.39
Deferred income 49.91 39.91
2,171.10 2,508.88
*Amounts due to subsidiary:

Varun Beverages RDC SAS 59.20 -

26. Current tax liabilities (Net)

(` in million)
As at As at
31 December 2024 31 December 2023
Provision for tax (net of taxes paid) 502.43 335.67
502.43 335.67
The key components of income tax expense for the year ended 31 December 2024 and 31 December 2023 are:

A. Statement of Profit and Loss:

(` in million)
As at As at
31 December 2024 31 December 2023
(i) Profit and Loss section
(a) Current tax 6,858.95 6,018.71
(b) Adjustment of tax relating to earlier years 6.64 (28.82)
(c) Deferred tax charge/(credit) 630.16 (59.52)
Income tax expense reported in the Statement of 7,495.75 5,930.37
Profit and Loss
(ii) Other comprehensive income (OCI) section
Deferred tax related to items recognised in OCI during the year:
(a) Net gain/(loss) on remeasurements of defined benefit (69.98) 6.99
plans
Tax charged to OCI (69.98) 6.99

B. Reconciliation of tax expense between accounting profit at applicable tax rate and effective tax
rate:
(` in million)
As at As at
31 December 2024 31 December 2023
Accounting profit before tax 30,699.39 23,681.63
Tax expense at statutory income tax rate of 25.17% (31 7,726.42 5,959.96
December 2023: 25.17%)
Adjustment of tax relating to earlier years 6.64 (28.82)
Non deductible expenses 83.53 73.73
Deduction claimed u/s Chapter-VI A of Income-tax Act, 1961 (351.34) (109.46)
Income chargeable at special rates (1.64) -
Others 32.14 34.96
Tax expense at effective tax rate reported in the Statement 7,495.75 5,930.37
of Profit and Loss

Annual Report 2024 393

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
27. Revenue from operations
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Sale of products 137,820.72 122,098.90
Rendering of services 94.64 67.21
Other operating revenue 5,570.64 4,162.15
143,486.00 126,328.26

Disclosure on revenue pursuant to Ind AS 115- Revenue from contract with customers:
A. Reconciliation of revenue recognised with the contracted price:
(` in million)
Particulars Year ended Year ended
31 December 2024 31 December 2023
Gross revenue/Contracted price 139,496.90 123,554.82
Less: Discounts and rebates (1,581.54) (1,388.71)
Revenue from contracts with customers 137,915.36 122,166.11

B. Disaggregation of revenue
a) Information about geographical area
(` in million)
Particulars Year ended Year ended
31 December 2024 31 December 2023
i. Sale of products and rendering of services
(i) Within India 136,208.72 121,606.68
(ii) Outside India 1,706.64 559.43
Total sale of products and rendering of services 137,915.36 122,166.11

b) Revenue from sale of goods and services are recognised at a point in time. There are no disaggregation
of revenue with respect to this information.

c) No single external customer amounts to 10% or more of the Company’s revenue from operations.

C. Contract balances:
The following table provides information about trade receivables and contract liabilities from contract with
customers:

Receivables
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Trade receivables 2,287.45 2,416.14
Less: Allowances for expected credit loss (289.82) (286.72)
Net receivables 1,997.63 2,129.42

Contract liabilities
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Advance from customers (Refer note 25) 1,417.35 1,725.58
1,417.35 1,725.58

394 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
D. Contract asset is the right to consideration in exchange for goods or services transferred to the customer.
Contract liabilities are on account of the advance payment received from customer for which performance
obligation has not yet been completed.
The performance obligation is satisfied when control of the goods or services are transferred to the customers
based on the contractual terms. The Company does not have any remaining performance obligation as
contracts entered for sale of goods are for a shorter duration. Further, there are no contracts for sale of
services wherein, performance obligation is unsatisfied to which transaction price has been allocated.
Payment terms with customers vary depending upon the contractual terms of each contract and generally
falls in the range of 0 to 120 days from the completion of performance obligation.
There is no significant financing component in any transaction with the customers.
E. 
Government grant recognised under the head ‘Other operating revenue’ amounts to ` 4,829.26 million
(31 December 2023: ` 3,462.98 million) under different industrial promotion tax exemption schemes.

F. Changes in the contract liabilities balances during the year are as follows:
(` in million)
Particulars Year ended Year ended
31 December 2024 31 December 2023
Balance at the beginning of the year 1,725.58 1,933.09
Addition during the year 1,417.35 1,725.58
Revenue recognised during the year (1,725.58) (1,933.09)
Balance at the closing of the year 1,417.35 1,725.58

28. Other income

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Interest income on items at amortised cost:
- term deposits 170.80 11.12
- loan to subsidiaries (Refer note 43B) 967.78 483.49
- others 44.90 17.63
Net gain on foreign currency transactions and translations 714.83 76.38
Gain on sale of current investments 22.47 3.51
Excess provisions and liabilities written back 62.35 291.84
Guarantee commission income from subsidiaries (Refer note 43B) 93.48 28.87
Dividend income from non-current investment in subsidiaries (Refer
1,315.99 407.53
note 43B)
Miscellaneous income 146.75 141.05
3,539.35 1,461.42

29. Cost of materials consumed

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Raw material and packing material consumed
Inventories at beginning of the year 5,905.76 5,799.79
Purchases during the year (net) 66,202.38 61,045.06
72,108.14 66,844.85
Less: Sold during the year 1,016.48 1,911.29
Less: Inventories at end of the year 7,469.37 5,905.76
63,622.29 59,027.80

Annual Report 2024 395

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
30. Purchases of stock-in-trade
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Beverages 806.24 960.33
Others 1,222.84 534.01
2,029.08 1,494.34

31. 
Changes in inventories of finished goods, intermediate goods, stock-in-trade and work
-in-progress
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
As at the beginning of the year
- Finished goods 2,985.94 3,180.12
- Intermediate goods 4,153.40 3,361.97
- Work in progress 24.55 55.50
7,163.89 6,597.59
As at the closing of the year
- Finished goods 2,809.45 2,985.94
- Intermediate goods 3,887.77 4,153.40
- Work in progress 71.25 24.55
6,768.47 7,163.89
Finished goods used as property, plant and equipment* (7.02) (51.85)
388.40 (618.15)

*The Company manufactures plastic shells at one of its manufacturing facilities at Alwar. The shells manufactured are used for
beverages operations of the Company as property, plant and equipment (under the head “Containers”). These containers are
also sold to third parties. The cost of manufacturing of plastic shells is being shown here separately with a corresponding debit
to property, plant and equipment.

32. Employee benefits expense

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Salaries, wages and bonus* 10,580.29 9,423.00
Contribution to provident fund and other funds* 592.02 498.45
Staff welfare expenses* 462.98 383.16
Share based payments (Net)** (Refer note 48) 140.25 63.35
11,775.54 10,367.96

*Refer note 4A for capitalisation of employee benefits expense in setting-up of new manufacturing facilities.
**Net of share based payments in relation to employees of subsidiaries amounting to ` 22.18 (31 December 2023: 15.75)

396 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
33. Finance costs
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Interest on items at amortised cost:
- Term loans* 2,810.92 2,022.66
- Working capital facilities* 471.13 57.92
- Financial liabilities (inclusive of interest on lease liabilities 160.08 201.82
` 104.75 (31 December 2023: ` 115.23))*
- Others (inclusive of interest on income tax ` 6.50 (31 46.06 118.65
December 2023: ` 82.28))
Other ancillary borrowing costs 8.36 9.90
3,496.55 2,410.95

*Refer note 4A for capitalisation of finance costs in setting-up of new manufacturing facilities.

34. Depreciation, amortisation and impairment expense

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Depreciation on property, plant and equipment (Refer note 4A) 5,986.66 5,007.16
Amortisation of intangible assets (Refer note 5B) 29.81 28.43
Amortisation of ROU (Refer note 4C) 162.59 147.69
6,179.06 5,183.28

35. Other expenses*

(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Power and fuel 4,756.55 4,369.42
Repairs to plant and equipment 2,555.42 2,107.72
Repairs to buildings 153.46 124.39
Other repairs 942.59 841.81
Consumption of stores and spares 1,263.90 1,058.54
Rent (Refer note 44) 553.09 517.90
Rates and taxes 388.97 717.54
Insurance 205.38 115.17
Printing and stationery 60.95 56.79
Communication 68.09 62.55
Travelling and conveyance 1,314.02 881.40
Sitting fees paid to directors (Refer note 43A) 8.20 5.10
Payment to auditors** 19.07 15.66
Vehicle running and maintenance 162.80 128.67
Lease and hire (Refer note 44) 228.98 193.61
Security and service charges 546.29 444.23
Legal, professional and consultancy 401.34 357.75
Bank charges 39.45 33.59
Advertisement and sales promotion 939.20 1,003.41
Meetings and conferences 52.92 63.94
Royalty 177.84 165.93
Freight, octroi and insurance paid (net) 8,505.58 8,369.15

Annual Report 2024 397

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Delivery vehicle running and maintenance 532.10 508.58
Distribution expenses 2,607.23 2,061.83
Loading and unloading charges 812.83 698.03
Donations 2.51 0.80
Loss on disposal/written off of property, plant and equipment (net) 761.81 764.10
Bad debts and advances written off 9.10 2.13
Allowance for expected credit loss 3.10 -
Corporate social responsibility expenditure (Refer note 47) 308.11 158.50
General office and other miscellaneous 454.16 413.63
28,835.04 26,241.87

*Refer note 4B for capitalisation of other expenses in setting-up of new manufacturing facilities.

**Payment to auditors
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Services rendered for:
- Audit and reviews 13.50 11.46
- taxation matters 3.23 2.11
- other matters# 1.40 1.86
- reimbursement of expenses 0.94 0.23
19.07 15.66
#Excludes expense of ` 6.07 (31 December 2023: ` Nil) towards fee related to share issue expenses, netted off with share
premium account and expense of ` Nil (31 December 2023: ` 0.23) towards other matters, which has been capitalised in new
projects.

36. Other comprehensive income (OCI)

The disaggregation of changes to OCI by each type of reserves in equity is shown below:
(` in million)
Year ended Year ended
31 December 2024 31 December 2023
Retained earnings
Re-measurement gain/(loss) on defined benefit plans 278.06 (27.76)
Tax impact on re-measurement gain/(loss) on defined benefit plans (69.98) 6.99
(Refer note 21)
208.08 (20.77)
37. Gratuity and other post-employment benefit plans
Gratuity:
The Company has a defined benefit gratuity plan governed by the Payments of Gratuity Act, 1972. Every employee
who has completed five years or more of services is eligible for gratuity on separation at 15 days salary (last drawn
salary) for each completed year of service. The Company has formed a Gratuity Trust to which contribution is made
and an insurance policy is taken by the trust, which is a year-on-year cash accumulation plan in which the interest rate is
declared on yearly basis and is guaranteed for a period of one year. The insurance company, as part of the policy rules,
makes payment of all gratuity outflow during the year (subject to sufficiency of funds under the policy). The policy,
thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared
to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (particularly, the significant fall
in interest rates, which should result in a increase in liability without corresponding increase in the asset. The Company
makes a provision of unfunded liability based on actuarial valuation in the Balance Sheet as part of employee cost.

398 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
Compensated absences:
The Company recognises the compensated absences expenses in the Statement of Profit and Loss based on
actuarial valuation.
The following tables summaries the components of net benefit expense recognised in the Statement of Profit and
Loss and the funded status and amounts recognised in the balance sheet:
(` in million)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Changes in present value are as follows:
Balance at the beginning of the year 2,090.08 1,801.42 951.05 876.72
Current service cost 251.03 208.99 213.85 163.15
Interest cost 148.37 133.22 68.82 63.89
Benefits settled (107.52) (78.80) (73.20) (53.45)
Actuarial (gain)/loss (249.71) 25.25 (118.94) (99.26)
Balance at the end of the year 2,132.25 2,090.08 1,041.58 951.05

(` in million)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Change in fair value of plan assets are as follows:
Plan assets at the beginning of the year, at fair value 672.89 418.43 - -
Expected income on plan assets 49.81 36.31 - -
Actuarial gain/(loss) 28.35 (2.51) - -
Contributions by employer 300.00 250.00 - -
Benefits settled (8.04) (29.34) - -
Plan assets at the end of the year, at fair value 1,043.01 672.89 - -
The Company has taken an insurance policy against its liability towards gratuity, the same has been disclosed as
plan assets above.
(` in million)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Reconciliation of present value of the obligation
and the fair value of the plan assets:
Present value of obligation 2,132.25 2,090.08 1,041.58 951.05
Fair value of plan assets (1,043.01) (672.89) - -
Net liability recognised in the Balance Sheet 1,089.24 1,417.19 1,041.58 951.05

(` in million)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Amount recognised in Statement of Profit
and Loss:
Current service cost 251.03 208.99 213.85 163.15
Interest expense 148.37 133.22 68.82 63.89
Expected return on plan assets (49.81) (36.31) - -
Actuarial gain - - (118.94) (99.26)
Net cost recognised 349.59 305.90 163.73 127.78

Annual Report 2024 399

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
Amount recognised in Other
Comprehensive Income:
Actuarial changes arising from changes in (225.31) 21.27 - -
financial assumptions
Experience adjustments (24.40) 3.98 - -
Return on plan assets (28.35) 2.51 - -
Amount recognised (278.06) 27.76 - -

Gratuity Compensated Absences

31 December 31 December 31 December 31 December
2024 2023 2024 2023
Assumptions used:
Mortality IALM 2012-2014 IALM 2012-2014 IALM 2012-2014 IALM 2012-2014
Discount rate 6.95% 7.23% 6.95% 7.23%
Withdrawal rate 12.00% 12.00% 12.00% 12.00%
Salary increase 10.00% 12.00% 10.00% 12.00%
Rate of leave availment - - 20.00% 20.00%
Retirement age (Years) 58-70 58-70 58-70 58-70
Rate of return on plan assets 7.33-7.67% 6.79-7.65% - -
A quantitative sensitivity analysis for significant assumption is shown below:
(` in million)
Sensitivity level Gratuity Compensated Absences
31 December 31 December 31 December 31 December 31 December 31 December
2024 2023 2024 2023 2024 2023
+1% +1% (133.69) (126.51) (32.10) (28.55)
Discount rate
-1% -1% 119.78 142.05 30.25 30.36
+1% +1% 117.64 134.38 29.69 28.76
Salary increase
-1% -1% (128.54) (122.44) (30.90) (27.61)
Withdrawal rate +1% +1% (21.56) (30.63) (9.64) (9.60)
-1% -1% 19.70 33.85 9.18 10.10
The sensitivity analysis above has been determined based on reasonably possible changes of the assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.
Risk associated:

Investment risk The present value of the defined benefit plan liability is calculated using a discount rate
determined by reference to Government Bonds Yield. If plan liability is funded and return
on plan assets is below this rate, it will create a plan deficit.
Interest risk A decrease in the bond interest rate (discount rate) will increase the plan liability.
(discount rate risk)
Mortality risk The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants. For this report we have used Indian Assured
Lives Mortality (2012-2014) (31 December 2023: (2012-14)). A change in mortality rate will
have a bearing on the plan's liability.
Salary risk The present value of the defined benefit plan liability is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase of salary
in future for plan participants from the rate of increase in salary used to determine the
present value of obligation will have a bearing on the plan's liability.

400 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
Effect of the defined benefit plan on the Company’s future cash flows:
Funding arrangements and funding policy:
The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every
year, the insurance company carries out a funding valuation based on the latest employee data provided by the
Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

Expected contribution during the next annual reporting period:

The Company’s best estimate of contribution during the next financial year approximates to ` 1,310.68 million
(31 December 2023: ` 1,637.97 million).

The following are maturity profile of Defined Benefit Obligations in future years (before adjusting fair
value of plan assets):
(` in million)
Gratuity Compensated Absences
31 December 31 December 31 December 31 December
2024 2023 2024 2023
i) Weighted average duration of the 6 years 6 years 3 years 3 years
defined benefit obligation
ii) Expected cash flows over the years
(valued on undiscounted basis):
Duration (years)
1 359.50 324.25 353.82 311.98
2 to 5 1,041.41 953.48 671.61 616.72
Above 5 2,105.81 2,406.44 285.48 292.42
3,506.72 3,684.17 1,310.91 1,221.12

Defined contribution plan:

Contribution to defined contribution plans, recognised as expense for the year is as under:

Employer’s contribution to provident and other funds ` 592.02 million (31 December 2023 ` 498.45 million)
(Refer note 32)

38. Earnings per share (EPS)

(` in million, unless otherwise stated)
31 December 2024 31 December 2023
Profit attributable to the equity shareholders 23,203.64 17,751.26
Weighted average number of equity shares outstanding during the
3,264,147,731 3,247,850,643
year for calculating basic earning per share (nos.)*
Add: Weighted average number of potential equity shares on
1,610,654 1,397,832
account of employee stock options*
Weighted average number of equity shares outstanding during the
3,265,758,385 3,249,248,475
year for calculating diluted earnings per share (nos.)*
Nominal value per equity shares (`)* 2.00 2.00
Basic earnings per share (`) 7.11 5.46
Diluted earnings per share (`) 7.11 5.46

*Previous year numbers are adjusted for shares splits during the current year (Refer note 17(g)).

Annual Report 2024 401

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
39. Dividend
(` in million)
31 December 2024 31 December 2023
Dividend on equity shares declared and paid during the year:
Final dividend 1,624.24 649.55
Interim dividend 1,624.31 1,623.93

40. Contingent liabilities

(` in million)
31 December 2024 31 December 2023
Claims against the Company not acknowledged as debts (being
contested):-
(i) Goods and service tax 308.74 140.90
(ii) For excise and service tax 38.08 41.79
(iii) For customs 207.81 90.75
(iv) For sales tax / entry tax 630.52 663.59
(v) For income tax 100.02 144.36
(vi) For mandi tax and others* 205.02 388.60

*excludes pending matters where amount of liability is not ascertainable.

41. Commitments
(` in million)
31 December 2024 31 December 2023
a. Guarantees issued on behalf of subsidiaries for business 15,776.40 3,595.76
purposes
b. Estimated amount of contracts remaining to be executed 25,311.44 27,554.41
on capital account and not provided for (net of advances of
` 3,281.12 (31 December 2023: ` 3,375.94))*

*Inclusive of commitment as mentioned in note 58.

42. Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Company is required to use specified
methods for computing arm’s length price in relation to specified international and domestic transactions with its
associated enterprises. Further, the Company is required to maintain prescribed information and documents in
relation to such transactions. The appropriate method to be adopted will depend on the nature of transactions/
class of transactions, class of associated persons, functions performed and other factors, which have been
prescribed. The Company is in the process of updating its transfer pricing documentation for the current financial
year. Based on the preliminary assessment, the management is of the view that the update would not have a
material impact on the tax expense recorded in these financial statements. Accordingly, these financial statements
do not include any adjustments for the transfer pricing implications, if any.

402 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
43. Related party disclosures (as per Ind AS-24)
Following are the related parties and transactions entered with related parties for the relevant reporting
period as at 31 December 2024
(i) List of related parties and relationships:-
I. Key managerial personnel (KMPs)
Mr. Ravi Kant Jaipuria Non-executive chairman
Mr. Varun Jaipuria Executive vice-chairman and Whole time Director
Mr. Raj Pal Gandhi Whole Time Director
Mr. Rajinder Jeet Singh Bagga Whole Time Director
Mrs. Sita Khosla Non-executive independent director
Dr. Ravi Gupta Non-executive independent director
Mrs. Rashmi Dhariwal Non-executive independent director
Mr. Abhiram Seth Non-executive independent director
(w.e.f 02 May 2023)
Mr. Anil Kumar Sondhi Non-executive independent director
(w.e.f 02 May 2023)
Mr. Pradeep Khushalchand Sardana Non-executive independent director
(till 27 March 2023)
Dr. Naresh Kumar Trehan Non-executive Non-independent director
(w.e.f 21 April 2024)
Mr. Ravi Batra Company secretary
Mr. Mahavir Prasad Garg Company secretary of the parent, namely RJ
Corp Limited
Mr. Lalit Malik Chief Financial Officer (till 13 May 2024)
Mr. Rajesh Chawla Chief Financial Officer (w.e.f 14 May 2024)

II. Parent and ultimate parent

RJ Corp Limited Parent

III. Subsidiaries/step down subsidiaries

Varun Beverages Morocco SA Subsidiary
Varun Beverages (Nepal) Private Limited Subsidiary
Varun Beverages Lanka (Private) Limited Subsidiary
Varun Beverages (Zambia) Limited Subsidiary
Varun Beverages (Zimbabwe) (Private) Limited Subsidiary
Lunarmech Technologies Private Limited Subsidiary
Ole Spring Bottlers (Private) Limited Step down subsidiary
Varun Beverages RDC SAS Subsidiary
Varun Beverages International DMCC Subsidiary
Varun Beverages South Africa (PTY) Limited Subsidiary (w.e.f 23 May 2023)
VBL Mozambique, SA Subsidiary (w.e.f 21 November 2023)
Varun Foods (Zimbabwe) (Private) Limited Subsidiary (w.e.f. 22 May 2024)
The Beverages Company Proprietary Limited Subsidiary (w.e.f. 26 March 2024)
The Beverage Company Bidco Proprietary Limited Step down subsidiary (w.e.f. 26 March 2024)
Little Green Beverages Proprietary Limited Step down subsidiary (w.e.f. 26 March 2024)
Softbev Proprietary Limited Step down subsidiary (w.e.f. 26 March 2024)

Annual Report 2024 403

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
IV. Fellow subsidiaries and entities controlled by parent/ultimate parent*
Devyani International Limited
Devyani Food Industries Limited
Devyani Food Industries (Kenya) Limited
SVS India Private Limited
Devyani Airport Services (Mumbai) Private Limited#
Cryoviva Biotech Private Limited

V. Joint Venture/Associates (or an associate of any member of the company)
IDVB Recycling Operations Private Limited Joint Venture
Clean Max Tav Private Limited Associate
Huoban Energy 7 Private Limited Associate (w.e.f. 09 May 2023)

VI. Relatives of KMPs*
Mrs. Dhara Jaipuria
Mrs. Devyani Jaipuria
Mr. Ravindra Dhariwal

VII. Entities in which a director or his/her relative is a member/director/Trustee*
SMV Beverages Private Limited
Alisha Torrent Closures (India) Private Limited
Jai Beverages Private Limited
Lineage Healthcare Limited
RJ Foundation
Global Health Limited

VIII. Entities which are post employment benefits plans

VBL Employees Gratuity Trust

*With whom the Company had transactions during the current year and previous year.
#Amalgamated with Devyani International Limited w.e.f. 01 April 2022 vide Hon’ble National Company Law Tribunal
order dated 13 July 2023.

(ii) Terms and conditions of transactions with related parties
The transactions with related parties are made in the ordinary course of business and on terms equivalent
to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and
settlement occurs in cash. This assessment is undertaken each financial year through examining the financial
position of the related party and the market in which the related party operates.

(iii) Transactions with KMPs (Refer note 43A)

(iv) Transactions with related parties (Refer note 43B)

404 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
43A. Transactions with KMPs
(` in million)
For year ended 2024 For year ended 2023
I. Remuneration paid
Mr. Varun Jaipuria 72.02 54.02
Mr. Raj Pal Gandhi 67.18 62.45
Mr. Ravi Batra 16.18 14.85
Mr. Rajinder Jeet Singh Bagga 61.56 57.66
Mr. Rajesh Chawla 7.41 6.35
Mr. Mahavir Prasad Garg 3.59 2.99
Mr. Lalit Malik 38.17 20.63

II. Director sitting fees paid

Mr. Pradeep Khushalchand Sardana - 0.10
Mrs. Sita Khosla 1.70 1.00
Dr. Ravi Gupta 2.20 1.40
Mrs. Rashmi Dhariwal 2.90 1.80
Mr. Abhiram Seth 0.60 0.40
Mr. Anil Kumar Sondhi 0.80 0.40

III. Dividend paid

Mr. Varun Jaipuria 520.86 364.60
Mr. Raj Pal Gandhi 6.59 4.66
Mr. Ravi Batra 0.02 -
Mr. Rajesh Chawla 0.01 -
Mr. Ravi Kant Jaipuria 565.90 403.11
Mr. Rajinder Jeet Singh Bagga 1.46 1.02
Mr. Abhiram Seth 0.00 -
Mr. Pradeep Khushalchand Sardana - 0.00

IV. Defined benefit obligation for KMP

i. Gratuity
Mr. Varun Jaipuria 69.55 56.52
Mr. Raj Pal Gandhi 54.84 53.21
Mr. Ravi Batra 3.87 3.41
Mr. Mahavir Prasad Garg 1.21 0.97
Mr. Rajinder Jeet Singh Bagga 49.13 45.13
Mr. Rajesh Chawla 1.30 -
Mr. Lalit Malik - 0.01

ii. Compensated absences

Mr. Varun Jaipuria 26.47 21.01
Mr. Raj Pal Gandhi 15.05 15.19
Mr. Ravi Batra 2.34 2.29
Mr. Mahavir Prasad Garg 0.68 0.68
Mr. Rajinder Jeet Singh Bagga 13.59 12.93
Mr. Rajesh Chawla 1.51 -
Mr. Lalit Malik - 0.79

Annual Report 2024 405

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
For year ended 2024 For year ended 2023
V. Advance given
Mr. Lalit Malik - 38.50
Mr. Mahavir Prasad Garg 0.85 -
Mr. Ravi Batra 4.40 -

VI. Balances (payable)/receivable outstanding at the end of

the year, net
Mr. Varun Jaipuria (3.70) (2.78)
Mr. Raj Pal Gandhi (2.20) (1.96)
Mr. Rajinder Jeet Singh Bagga (2.49) (2.22)
Mr. Rajesh Chawla (0.54) (0.49)
Mr. Ravi Batra (0.80) (0.73)
Mr. Mahavir Prasad Garg 0.52 0.46
Mr. Lalit Malik - 37.02
Dr. Ravi Gupta - (0.09)
Mrs. Rashmi Dhariwal - (0.09)
Mr. Abhiram Seth - (0.09)
Mr. Anil Kumar Sondhi - (0.09)
Mrs. Sita Khosla - (0.09)

Amounts below the rounding off norms adopted by the Company are presented as “0.00”.
Note:
(i) Stock options have been granted to KMPs of the Company. The number of stock options granted to such KMPs
outstanding as at 31 December 2024: 35,000 (31 December 2023 : 145,000). However as the liability has not been
determined for individual employees, the charge thereof for the individual employees is not disclosed above.
Previous year numbers are adjusted for shares splits during the current year (Refer note 17(g)).

406 Varun Beverages Limited

 Summary of material accounting policies and other explanatory information on the Standalone
Financial Statements for the year ended 31 December 2024

43B. Transactions with related parties

(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Sale of goods
- Varun Beverages (Nepal) - - 86.89 90.78 - - - - - - - - - - 86.89 90.78
Private Limited
- Ole Spring Bottlers - - 12.05 6.34 - - - - - - - - - - 12.05 6.34
(Private) Limited
- Varun Beverages Morocco - - 2.00 2.99 - - - - - - - - - - 2.00 2.99
SA
- Varun Beverages Lanka - - 3.00 12.83 - - - - - - - - - - 3.00 12.83
(Private) Limited
- Varun Beverages (Zambia) - - 80.80 40.28 - - - - - - - - - - 80.80 40.28
Limited
- Varun Beverages (Zimbabwe) - - 517.31 448.14 - - - - - - - - - - 517.31 448.14
(Private) Limited
CORPORATE OVERVIEW

- Varun Beverages RDC SAS - - 915.95 - - - - - - - - - - - 915.95 -

- SMV Beverages Private - - - - - - - - - - 119.19 105.41 - - 119.19 105.41
Limited
- Lunarmech Technologies - - 59.21 60.93 - - - - - - - - - - 59.21 60.93
Private Limited
- Alisha Torrent Closures - - - - - - - - - - 11.45 11.35 - - 11.45 11.35
(India) Private Limited
- Jai Beverages Private - - - - - - - - - - 115.85 170.49 - - 115.85 170.49
Limited
- Devyani International - - - - 38.37 59.15 - - - - - - - - 38.37 59.15
Limited
- Devyani Food Industries - - - - 32.57 30.19 - - - - - - - - 32.57 30.19
Limited
STATUTORY REPORTS

- Devyani Airport Services - - - - - 2.02 - - - - - - - - - 2.02

(Mumbai) Private Limited
- Lineage Healthcare Limited - - - - - - - - - - 0.10 0.11 - - 0.10 0.11
- Devyani Food Industries - - - - 2.63 20.82 - - - - - - - - 2.63 20.82
(Kenya) Limited
- RJ Foundation - - - - - - - - - - 0.00 - - - 0.00 -

Sale of raw materials and

stores
- Varun Beverages (Nepal) - - 10.87 17.54 - - - - - - - - - - 10.87 17.54
Private Limited

Annual Report 2024

- Ole Spring Bottlers - - - 85.02 - - - - - - - - - - - 85.02
(Private) Limited
- Varun Beverages Lanka - - 83.47 101.08 - - - - - - - - - - 83.47 101.08
(Private) Limited
FINANCIAL STATEMENTS

407
 Summary of material accounting policies and other explanatory information on the Standalone

408
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023

Varun Beverages Limited

- V
 arun Beverages - - 145.58 24.09 - - - - - - - - - - 145.58 24.09
(Zimbabwe) (Private)
Limited
- V
 arun Beverages (Zambia) - - 21.04 2.98 - - - - - - - - - - 21.04 2.98
Limited
- V
 arun Beverages Morocco - - - 0.00 - - - - - - - - - - - 0.00
SA
- Varun Beverages RDC SAS - - 259.58 - - - - - - - - - - - 259.58 -
- L
 unarmech Technologies - - 0.01 0.00 - - - - - - - - - - 0.01 0.00
Private Limited
- J
 ai Beverages Private - - - - - - - - - - 164.40 - - - 164.40 -
Limited
- D
 evyani Food Industries - - - - 34.10 45.91 - - - - - - - - 34.10 45.91
Limited
- S
 MV Beverages Private - - - - - - - - - - 99.45 172.40 - - 99.45 172.40
Limited
- D
 evyani Food Industries - - - - - 8.50 - - - - - - - - - 8.50
(Kenya) Limited

Purchase of goods
- SMV Beverages Private - - - - - - - - - - 449.81 575.53 - - 449.81 575.53
Limited
- Devyani Food Industries - - - - 291.16 384.89 - - - - - - - - 291.16 384.89
Limited

Purchase of raw materials

and stores
- Alisha Torrent Closures - - - - - - - - - - 2.19 - - - 2.19 -
(India) Private Limited
- Lunarmech Technologies - - 1,261.99 1,743.36 - - - - - - - - - - 1,261.99 1,743.36
Private Limited
- SMV Beverages Private - - - - - - - - - - 5.32 16.65 - - 5.32 16.65
Limited
- Devyani Food Industries - - - - 5.61 60.45 - - - - - - - - 5.61 60.45
Limited
- V
 arun Beverages (Nepal) - - - 43.30 - - - - - - - - - - - 43.30
Private Limited
 Summary of material accounting policies and other explanatory information on the Standalone
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Loan given
- Varun Beverages RDC SAS - - 3,407.05 1,900.11 - - - - - - - - - - 3,407.05 1,900.11
- Varun Beverages - - 1,720.69 83.29 - - - - - - - - - - 1,720.69 83.29
International DMCC
- The Beverages Company - - 2,866.50 - - - - - - - - - - - 2,866.50 -
Propritary limited
- IDVB Recycling Operations - - - - - - - 10.00 - - - - - - - 10.00
Private Limited

Interest income/(expense)
- Varun Beverages Morocco - - 78.64 83.99 - - - - - - - - - - 78.64 83.99
SA
- Varun Beverages (Zimbabwe) - - 71.81 98.59 - - - - - - - - - - 71.81 98.59
(Private) Limited
CORPORATE OVERVIEW

- Varun Beverages (Zambia) - - 58.56 58.72 - - - - - - - - - - 58.56 58.72

Limited
- SMV Beverages Private - - - - - - - - - - (4.00) (7.00) - - (4.00) (7.00)
Limited
- Varun Beverages RDC SAS - - 234.44 80.36 - - - - - - - - - - 234.44 80.36
- Varun Beverages - - 256.77 161.82 - - - - - - - - - - 256.77 161.82
International DMCC
- The Beverages Company - - 267.56 - - - - - - - - - - - 267.56 -
Propritary limited
- IDVB Recycling Operations - - - - - - - 0.68 - - - - - - - 0.68
Private Limited
STATUTORY REPORTS

Contribution to corporate
social responsibility activities
- RJ Foundation - - - - - - - - - - 308.11 158.50 - - 308.11 158.50

Guarantee commission income

- Varun Beverages - - 1.27 3.36 - - - - - - - - - - 1.27 3.36
(Zimbabwe) (Private)
Limited
- Varun Beverages (Zambia) - - 3.06 1.29 - - - - - - - - - - 3.06 1.29
Limited

Annual Report 2024

- Varun Beverages - - 21.11 14.58 - - - - - - - - - - 21.11 14.58
International DMCC
FINANCIAL STATEMENTS

409
 Summary of material accounting policies and other explanatory information on the Standalone

410
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023

Varun Beverages Limited

- Varun Beverages Lanka - - 2.29 1.76 - - - - - - - - - - 2.29 1.76
(Private) Limited
.- Varun Beverages RDC SAS - - 15.41 7.87 - - - - - - - - - - 15.41 7.87
- The Beverages Company - - 50.35 - - - - - - - - - - - 50.35 -
Propritary limited

Dividend income
- Varun Beverages (Nepal) - - 999.81 407.53 - - - - - - - - - - 999.81 407.53
Private Limited
- Varun Beverages Lanka - - 316.19 - - - - - - - - - - - 316.19 -
(Private) Limited

Equity investment
- IDVB Recycling Operations - - - - - - 369.93 120.00 - - - - - - 369.93 120.00
Private Limited
- Clean Max Tav Private - - - - - - - 32.82 - - - - - - - 32.82
Limited
- Varun Beverages (Nepal) - - - 625.00 - - - - - - - - - - - 625.00
Private Limited
- Varun Beverages South - - - 0.05 - - - - - - - - - - - 0.05
Africa (PTY) Limited
- Huoban Energy 7 Private - - - - - - - 21.24 - - - - - - - 21.24
Limited
- Lunarmech Technologies Private - - 2,000.00 100.00 - - - - - - - - - - 2,000.00 100.00
Limited

Conversion of loan into

investment
- IDVB Recycling Operations - - - - - - - 10.00 - - - - - - - 10.00
Private Limited

Professional charges paid

- Mr. Ravindra Dhariwal - - - - - - - - - 1.25 - - - - - 1.25

Travelling expenses paid

- Varun Beverages - - 271.42 - - - - - - - - - - - 271.42 -
International DMCC

Licence Fee Paid

- Devyani Food Industries Ltd - - - - 1.50 0.90 - - - - - - - - 1.50 0.90
 Summary of material accounting policies and other explanatory information on the Standalone
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Dividend paid
- RJ Corp Limited 871.63 615.09 - - - - - - - - - - - - 871.63 615.09
- Mrs. Dhara Jaipuria - - - - - - - - 0.03 0.02 - - - - 0.03 0.02
- Mrs. Devyani Jaipuria - - - - - - - - 78.78 55.15 - - - - 78.78 55.15

(Recovery of Expenses
incurred by the Company on
behalf of others)/expenses
incurred by others on behalf
of the Company)
- Devyani International Limited - - - - 5.58 3.37 - - - - - - - - 5.58 3.37
- Lunarmech Technologies - - - 0.12 - - - - - - - - - - - 0.12
Private Limited
- RJ Corp Limited (1.73) (2.43) - - - - - - - - - - - - (1.73) (2.43)
CORPORATE OVERVIEW

- Devyani Food Industries - - - - (24.70) (21.36) - - - - - - - - (24.70) (21.36)

Limited
- Devyani Food Industries - - - - - (0.13) - - - - - - - - - (0.13)
(Kenya) Limited
- SMV Beverages Private - - - - - - - - - - - 0.00 - - - 0.00
Limited

Rent/ lease charges paid/

(received)
- RJ Corp Limited 112.80 112.80 - - - - - - - - - - - - 112.80 112.80
- SVS India Private Limited - - - - 3.24 2.97 - - - - - - - - 3.24 2.97
- SMV Beverages Private - - - - - - - - - - 27.00 27.00 - - 27.00 27.00
Limited
STATUTORY REPORTS

- Devyani Food Industries - - - - (8.82) (8.82) - - - - - - - - (8.82) (8.82)

Limited
- Lunarmech Technologies - - (3.52) - - - - - - - - - - - (3.52) -
Private Limited

Medical expenditure
Global Health Limited - - - - - - - - - - 0.15 0.11 - - 0.15 0.11

Financial guarantees given

- Varun Beverages (Zambia) - - 1,004.65 - - - - - - - - - - - 1,004.65 -

Annual Report 2024

Limited
- Varun Beverages - - 3,127.11 - - - - - - - - - - - 3,127.11 -
International DMCC
FINANCIAL STATEMENTS

411
 Summary of material accounting policies and other explanatory information on the Standalone

412
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023

Varun Beverages Limited

- Varun Beverages Lanka - - 152.92 - - - - - - - - - - - 152.92 -
(Private) Limited
- Varun Beverages RDC SAS - - 1,190.41 1,246.75 - - - - - - - - - - 1,190.41 1,246.75
- The Beverages Company - - 6,599.99 - - - - - - - - - - - -
Propritary limited 6,599.99

Financial guarantees closed

- Varun Beverages - - - 897.66 - - - - - - - - - - - 897.66
(Zimbabwe) (Private)
Limited
- Varun Beverages (Zambia) - - 331.66 - - - - - - - - - - - 331.66 -
Limited

Sale of Property, Plant

and equipment.
- Varun Beverages (Nepal) - - 0.96 12.33 - - - - - - - - - - 0.96 12.33
Private Limited
- Varun Beverages - - 38.01 342.62 - - - - - - - - - - 38.01 342.62
(Zimbabwe) (Private)
Limited
- Varun Beverages (Zambia) - - 11.52 21.93 - - - - - - - - - - 11.52 21.93
Limited
- Varun Beverages Lanka - - 69.50 50.28 - - - - - - - - - - 69.50 50.28
(Private) Limited
- Ole Spring Bottlers - - 15.14 - - - - - - - - - - - 15.14 -
(Private) Limited
- Varun Beverages RDC SAS - - 17.50 75.07 - - - - - - - - - - 17.50 75.07

Contribution to gratuity trust

- VBL Employees Gratuity - - - - - - - - - - - - 300.00 250.00 300.00 250.00
Trust

IT infrastructure support fee

received
- Varun Beverages (Nepal) - - 3.59 2.73 - - - - - - - - - - 3.59 2.73
Private Limited
 Summary of material accounting policies and other explanatory information on the Standalone
Financial Statements for the year ended 31 December 2024

(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
- Varun Beverages Lanka - - 8.67 4.96 - - - - - - - - - - 8.67 4.96
(Private) Limited
- Varun Beverages - - 6.67 5.49 - - - - - - - - - - 6.67 5.49
(Zimbabwe) (Private)
Limited
- Devyani International - - - - 10.13 4.41 - - - - - - - - 10.13 4.41
Limited
- Varun Beverages (Zambia) - - 7.60 4.95 - - - - - - - - - - 7.60 4.95
Limited
- Varun Beverages Morocco - - 10.08 4.99 - - - - - - - - - - 10.08 4.99
SA
- Rj Corp Limited 1.75 0.84 - - - - - - - - - - - - 1.75 0.84
- Devyani Food Industries - - - - 2.81 2.06 - - - - - - - - 2.81 2.06
(Kenya) Limited
- Varun Beverages RDC SAS - - 2.57 0.30 - - - - - - - - - - 2.57 0.30
CORPORATE OVERVIEW

- The Beverages Company - - 3.63 - - - - - - - - - - - 3.63 -

Propritary limited
- Devyani Food Industries - - - - 16.22 11.96 - - - - - - - - 16.22 11.96
Limited
- Cryoviva Biotech Private - - - - 3.94 3.16 - - - - - - - - 3.94 3.16
Limited
- Lineage Healthcare Limited - - - - - - - - - - 0.49 0.57 - - 0.49 0.57
- Varun Beverages - - 0.56 0.09 - - - - - - - - - - 0.56 0.09
International DMCC

Advance paid for acquisition

of assets
- SMV Beverages Private Limited - - - - - - - - - - 45.00 - - - 45.00 -
STATUTORY REPORTS

Capital commitments
- SMV Beverages Private Limited - - - - - - - - - - 156.60 201.60 - - 156.60 201.60

Deemed Investment (Cross

Charge of shared based
payments)
- Varun Beverages (Zambia) - - 0.61 0.12 - - - - - - - - - - 0.61 0.12
Limited
- Varun Beverages RDC SAS - - 0.17 0.20 - - - - - - - - - - 0.17 0.20
- Varun Beverages (Zimbabwe) - - 4.23 2.93 - - - - - - - - - - 4.23 2.93

Annual Report 2024

(Private) Limited
- Varun Beverages Morocco - - 7.79 6.53 - - - - - - - - - - 7.79 6.53
SA
FINANCIAL STATEMENTS

413
 Summary of material accounting policies and other explanatory information on the Standalone

414
Financial Statements for the year ended 31 December 2024
(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
- Varun Beverages - - 3.37 2.45 - - - - - - - - - - 3.37 2.45
International DMCC

Varun Beverages Limited

- Varun Beverages (Nepal) - - 2.88 1.24 - - - - - - - - - - 2.88 1.24
Private Limited
- Varun Beverages Lanka - - 3.14 2.28 - - - - - - - - - - 3.14 2.28
(Private) Limited

Utilility charges
- Clean Max Tav Private - - - - - - 67.40 28.24 - - - - - - 67.40 28.24
Limited
- Lunarmech Technologies - - 41.02 26.53 - - - - - - - - - - 41.02 26.53
Private Limited
- Huoban Energy 7 Private - - - - - - 39.58 13.34 - - - - - - 39.58 13.34
Limited

Balances outstanding at the

end of the year, net including
loan outstanding
A. Receivable/(payable),net
- Varun Beverages Morocco - - 1,168.27 1,188.75 - - - - - - - - - - 1,168.27 1,188.75
SA
- Varun Beverages (Nepal) - - 958.33 399.13 - - - - - - - - - - 958.33 399.13
Private Limited
- Ole Spring Bottlers - - (0.00) (0.00) - - - - - - - - - - (0.00) (0.00)
(Private) Limited
- Varun Beverages Lanka - - 59.40 52.61 - - - - - - - - - - 59.40 52.61
(Private) Limited
- Varun Beverages (Zambia) - - 1,059.92 931.32 - - - - - - - - - - 1,059.92 931.32
Limited
- Varun Beverages - - 1,414.68 1,669.74 - - - - - - - - - - 1,414.68 1,669.74
(Zimbabwe) (Private)
Limited
- The Beverages Company - - 3,209.83 - - - - - - - - - - - 3,209.83 -
Propritary limited
- Devyani International - - - - 22.35 11.90 - - - - - - - - 22.35 11.90
Limited
- RJ Corp Limited 67.19 36.24 - - - - - - - - - - - - 67.19 36.24
- Lunarmech Technologies - - (160.58) (78.19) - - - - - - - - - - (160.58) (78.19)
Private Limited
- SMV Beverages Private - - - - - - - - - - 129.42 100.23 - - 129.42 100.23
Limited
- Varun Food and Beverages - - - - - - - - - - - - - - - -
Zambia Limited
- Alisha Torrent Closures - - - - - - - - - - 4.29 0.00 - - 4.29 0.00
(India) Private Limited
 Summary of material accounting policies and other explanatory information on the Standalone
Financial Statements for the year ended 31 December 2024
(` in million)
Description Parent and ultimate Subsidiaries/ step Fellow subsidiaries Joint Venture and Relatives of KMPs Entities in which a Entities which are Total
parent down subsidiary and entities Associates (or an director or his/her post employment
controlled by parent associate of any relative is a member/ benefits plans
member of the director/trustee
company)
For year ended For year ended For year ended For year ended For year ended For year ended For year ended For year ended
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
- Jai Beverages Private - - - - - - - - - - (0.13) 1.05 - - (0.13) 1.05
Limited
- Devyani Food Industries - - - - 12.07 4.95 - - - - - - - - 12.07 4.95
Limited
- Lineage Healthcare Limited - - - - - - - - - - 0.59 0.39 - - 0.59 0.39
- Devyani Food Industries - - - - 3.66 15.27 - - - - - - - - 3.66 15.27
(Kenya) Ltd
- Varun Beverages RDC SAS - - 5,719.56 2,212.98 - - - - - - - - - - 5,719.56 2,212.98
- Varun Beverages - - 4,030.81 2,198.40 - - - - - - - - - - 4,030.81 2,198.40
International DMCC
- SVS India Private Limited - - - - - (0.58) - - - - - - - - - (0.58)
- Cryoviva Biotech Private - - - - 5.88 4.78 - - - - - - - - 5.88 4.78
Limited
- IDVB Recycling Operations - - - - - - - (0.00) - - - - - - - (0.00)
CORPORATE OVERVIEW

Private Limited
- Clean Max Tav Private - - - - - - (0.00) (1.88) - - - - - - (0.00) (1.88)
Limited
- Huoban Energy 7 Private - - - - - - (2.27) (1.70) - - - - - - (2.27) (1.70)
Limited
- RJ Foundation - - - - - - - - - - 0.01 - - - 0.01 -

B. Financial guarantees
- Varun Beverages - - 385.30 374.02 - - - - - - - - - - 385.30 374.02
(Zimbabwe) (Private)
Limited
STATUTORY REPORTS

- Varun Beverages (Nepal) - - 280.98 280.98 - - - - - - - - - - 280.98 280.98

Private Limited
- Varun Beverages (Zambia) - - 1,027.48 332.47 - - - - - - - - - - 1,027.48 332.47
Limited
- Varun Beverages - - 4,495.22 1,246.75 - - - - - - - - - - 4,495.22 1,246.75
International DMCC
- Varun Beverages Lanka - - 290.27 114.79 - - - - - - - - - - 290.27 114.79
(Private) Limited
- The Beverages Company - - 6,814.08 - - - - - - - - - - - 6,814.08 -
Propritary limited

Annual Report 2024

- Varun Beverages RDC SAS - - 2,483.07 1,246.75 - - - - - - - - - - 2,483.07 1,246.75
Amounts below the rounding off norms adopted by the Company are presented as "0.00".
FINANCIAL STATEMENTS

415
Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
44. Disclosure on lease transactions pursuant to Ind AS 116 - Leases
 he Company’s lease asset class primarily consists of leases for land, buildings and plant and equipment. With the
T
exception of short-term leases, leases of low-value and cancellable long-term leases underlying assets, each lease
is reflected on the balance sheet as a right of use asset and a lease liability.

Lease liabilities are measured at the present value of the remaining lease payments, discounted using the weighted
average borrowing rate ranging 5.44-8.22% (31 December 2023: 5.44-8.22% ).

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the
asset to another party, the right of use asset can only be used by the Company. Leases are either non-cancellable
or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to extend
the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets
otherthan leasehold lands as security against the Company’s other debts and liabilities.

i. Lease liabilities are presented in the balance sheet is as follows:

(` in million)
As at As at
31 December 2024 31 December 2023
Current maturities of lease liabilities (Refer note 19D) 77.10 176.29
Non-current lease liabilities (Refer note 19C) 419.61 1,043.65
Total 496.71 1,219.94

ii. The recognised right of use assets relate to land, buildings and plant and equipments as at 31 December 2024 and
31 December 2023:
(` in million)
As at As at
31 December 2024 31 December 2023
Right of use assets - land, buildings and plant and equipments
Balance at the beginning of the year 8,875.89 8,267.06
Additions for the year 602.11 773.13
Rebate/grant related to asset received - (16.61)
Amortisation charge for the year (162.59) (147.69)
Balance at the end of the year 9,315.41 8,875.89

iii. The following are amounts recognised in Standalone Statement of Profit and Loss:
(` in million)
As at As at
31 December 2024 31 December 2023
Amortisation charge on right of use assets 162.59 147.69
Interest expense on lease liabilities* 104.75 115.23
Total 267.34 262.92
*During the year ended 31 December 2024, interest expense on leasehold lands acquired were capitalised as pre-operative
expense amounting to ` 15.43 million.

iv. Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12
months or less), cancellable long-term leases and for leases of low value assets. Payments made under such leases
are expensed on a straight-line basis. The expense relating to payments not included in the measurement of the
lease liability for short term leases is ` 782.07 million (31 December 2023 ` 711.51 millon).

v. Refer Standalone Cash Flow Statement for total cash outflow for leases.

416 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
vi. Maturity of lease liabilities

Future minimum lease payments were as follows for 31 December 2024:

(` in million)
Lease payments Interest expense Net Present value
Not later than 1 year 114.16 37.06 77.10
Later than 1 year not later than 5 years 314.16 90.76 223.40
Later than 5 years 1,193.65 997.44 196.21
Total 1,621.97 1,125.26 496.71

Future minimum lease payments were as follows for 31 December 2023:

(` in million)
Lease payments Interest expense Net Present value
Not later than 1 year 282.21 105.92 176.29
Later than 1 year not later than 5 years 1,026.78 235.34 791.44
Later than 5 years 829.45 577.24 252.21
Total 2,138.44 918.50 1,219.94

45. Segment Information

The business activities of the Company predominantly fall within a single reportable business segment, i.e.,
manufacturing and sale of beverages within India. There are no separately reportable business or geographical
segments that meet the criteria prescribed in Ind AS 108 on Operating Segments. The aforesaid is in line with
review of operating results by the chief operating decision maker. The sale of products of the Company is seasonal.

46. Dues to Micro and Small Enterprises

The dues to Micro and Small Enterprises as required under the Micro, Small and Medium Enterprises Development
(“MSMED”) Act, 2006 to the extent information available with the Company is given below:
(` in million)
Particulars 31 December 2024 31 December 2023
The principal amount and the interest due thereon remaining
unpaid to any supplier as at the end of each accounting year
Principal amount due to micro and small enterprises 1,232.13 767.25
Interest due 6.56 4.83
The amount of interest paid by the buyer in terms of section 16
of the MSMED Act, 2006 along with the amounts of the payment
949.98 522.67
made to the supplier beyond the appointed day during each
accounting year*
The amount of interest due and payable for the period of delay in
making payment (which have been paid but beyond the appointed
14.82 8.67
day during the year) but without adding the interest specified
under the MSMED Act 2006.
The amount of interest accrued and remaining unpaid at the end of
48.59 27.21
each accounting year
The amount of further interest remaining due and payable even
in the succeeding years, until such date when the interest dues as
above are actually paid to the micro and small enterprise for the 48.59 27.21
purpose of disallowance as a deductible expenditure under section
23 of the MSMED Act 2006
*includes principal amounting to ` 949.98 million (31 December 2023: ` 522.67 million).
The above amounts includes due to micro and small enterprises included within other financial liabilities.

Annual Report 2024 417

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
47. Details of Corporate Social Responsibility (CSR) expenditure
In accordance with the provisions of section 135 of the Companies Act, 2013, the Board of Directors of the Company
had constituted CSR Committee. The detail for CSR activities is as follows.
(` in million)
Particulars For the year ended For the year ended
31 December 2024 31 December 2023
a) Gross amount required to be spent by the Company during the
308.11 158.50
year
b) Amount approved by Board to be spent during the year 308.11 158.50
c) Amount spent during the year on the following
1. Construction / Acquisition of any asset 0.98 14.59
2. On purpose other than 1 above 307.13 143.91
d) Excess amount spent on CSR as per Section 135(5) of
Companies Act, 2013:
1. Opening balance - -
2. Amount required to be spent during the year 308.11 158.50
3. Amount spent during the year 308.11 158.50
4. Closing balance - -
e) Total of previous year shortfall - -
f) Reason for shortfall Not Applicable Not Applicable
g) Nature of CSR activities Promoting Promoting
healthcare, healthcare,
Education, Education,
Environmental Environmental
substantiality, sustainability,
Animal welfare, Gender equality,
Water conservation, Animal welfare etc.
Vocational skills etc.

1. Refer note 43B for amounts paid to RJ Foundation (CSR implementing agency registered with Ministry of
Corporate Affairs, Office of the Registrar of Companies, New Delhi) having objects to carry on CSR activities
as per requirements laid down under Section 135 of the Companies Act, 2013.

2. The Company does not carry any provisions for Corporate Social Responsibility expenses for current year and
previous year.

48. Share-based payments

a. Description of share based payment arrangements
i) Share Options Schemes (equity settled)
Employees Stock Option Scheme 2016 (“ESOS 2016 or scheme”)

The ESOS 2016 was approved by the Board of Directors and the shareholders on 27 April 2016 and further ratified
and amended by the shareholders in their meetings held on 17 April 2017 and 07 April 2022 respectively. Further,
National Stock Exchange of India Limited and BSE Limited have accorded their in principle approvals for issue
and allotment of upto 41,737,880 equity shares (“Ceiling Limit”). The scheme was formulated with the objective to
enable the Company to grant Options for equity shares of the Company to certain eligible employees as defined

418 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
in the Scheme at a pre-determined price.
The Options were granted on the dates as mentioned in the table below:

31 December 2024

Scheme Grant Date Number of Exercise Vesting Vesting Contractual

Options Granted Price Conditions Period period
ESOS 2016 05-Feb-24 7,500 453.60 Graded 05 Feb 2025 0-3.92 Years
vesting over to
4 01 Jan 2028
years
ESOS 2016 13-May-24 30,000 563.20 Graded 13 May 2024 0-3.67 Years
vesting over to
4 01 Jan 2028
years
ESOS 2016 16-Sep-24 6,250 626.00 Graded 16 Sep 2024 0-3.25 Years
vesting over to
4 01 Jan 2028
years
ESOS 2016 27-Sep-24 20,000 626.00 Graded 27 Sep 2024 0-3.25 Years
vesting over to
4 01 Jan 2028
years

31 December 2023

Scheme Grant Date Number of Exercise Vesting Vesting Contractual

Options Granted Price Conditions Period period
ESOS 2016 06-Feb-23 135,000 251.00 Graded 06 Feb 2023 0-3.92 Years
vesting over to
4 01 Jan 2027
years
ESOS 2016 02-May-23 30,000 257.20 Graded 02 May 2023 0-3.67 Years
vesting over to
4 01 Jan 2027
years
ESOS 2016 03-Aug-23 125,000 320.40 Graded 03 Aug 2023 0-3.42 Years
vesting over to
4 01 Jan 2027
years
ESOS 2016 06-Nov-23 65,000 359.60 Graded 06 Nov 2023 0-3.17 Years
vesting over to
4 01 Jan 2027
years
ESOS 2016 23-Nov-23 75,000 359.60 Graded 23 Nov 2023 0-3.09 Years
vesting over to
4 01 Jan 2027
years

Annual Report 2024 419

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
b. Measurement of fair values
The fair values are measured based on the Black-Scholes-Merton model. The fair value of the options and
inputs used in the measurement of the grant date fair values of the equity-settled share based payments are
as follows:

31 December 2024

Particulars Options Options Options Options

granted on granted on granted on granted on
05 February 13 May 2024 16 September 27 September
2024 2024 2024
Fair value per Option at grant date 187.97 183.34 165.54 165.54
(in `)
Share price at grant date (in `) 514.30 585.32 626.85 626.85
Exercise price (in `) 453.60 563.20 626.00 626.00
Expected volatility 34.20%-37.95% 31.26%-36.48% 30.39%-35.07% 30.39%-35.07%
Expected life (in years) 1.57-4.47 1.57-4.20 1.57-3.83 1.57-3.83
Expected dividends 0.27% 0.17% 0.40% 0.40%
Risk-free interest rate 6.67%-6.75% 6.72%-6.76% 6.33%-6.37% 6.33%-6.37%

31 December 2023

Particulars Options Options Options Options Options

granted on granted on granted on granted on granted on
06 February 02 May 2023 03 August 06 23 November
2023 2023 November 2023
2023
Fair value per Option at grant date (in `) 68.80 105.55 97.43 116.17 139.01
Share price at grant date (in `) 230.98 289.04 323.24 380.74 412.54
Exercise price (in `) 251.00 257.20 320.40 359.60 359.60
Expected volatility 38.03%-40.07% 37.33%-39.95% 36.65%-39.12% 35.77%-37.09% 35.71%-36.46%
Expected life (in years) 1.6-4.5 1.6-4.2 1.6-4.0 1.57-3.72 1.57-3.68
Expected dividends 0.22% 0.24% 0.43% 0.37% 0.34%
Risk-free interest rate 6.57%-6.91% 6.60%-6.69% 6.67%-6.80% 6.82%-6.96% 6.75%-6.89%

The risk-free interest rate (continuous compounding) being considered for the calculation is the interest rate
applicable for maturity equal to the expected life of the options on the date of grant of options based on the
zero-coupon yield curve for Government Securities available as on Valuation date taken from www.ccilindia.com.

The measure of volatility used in the Option-Pricing Model is the annualised standard
deviation of the continuous rates of return on the stock over a period of time.

420 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
c. Effect of employee stock option schemes on the standalone statement of profit and loss

(` in million, unless otherwise stated)

Particulars 31 December 2024 31 December 2023
Share based payment to employees* 140.25 63.35


*included in employee benefits expense (net of share based payments in relation to employees of subsidiaries amounting to ` 22.18
(31 December 2023: 15.75) (Refer note 32)

d. Reconciliation of outstanding share options

The number and weighted-average exercise prices of share options under the schemes is as follows:

As at As at
31 December 2024 31 December 2023
Number of Weighted Number of Weighted
options average options average
exercise exercise
price (`) price (`)
Number of options granted, exercised and forfeited
Options outstanding as at the beginning of the year 3,083,035 159.82 3,054,875 159.82
Add: Options granted during the year 63,750 576.16 430,000 306.97
Less: Options exercised during the year 729,215 159.82 289,340 159.82
Less: Options forfeited/lapsed during the year 10,000 159.82 112,500 159.82
Options outstanding as at the end of the year 2,407,570 170.84 3,083,035 159.82
Options exercisable at the end of the year 563,877 159.82 180,750 159.82

(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Weighted average remaining life of options outstanding at the end
1.75 2.70
of year (in years)

Also refer note 17(g) on sub-division/split of equity shares of the Company during the year. The outstanding stock
options (whether vested or unvested as on the Record Date) and exercise prices as above has been adjusted to
ensure fair and reasonable adjustment to the entitlement of the Eligible Employees under the Schemes due to the
sub-division/split of equity shares.

49. Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital, securities
premium and all other equity reserves attributable to the equity shareholders of the Company.
The Company’s capital management objectives are:
- to ensure the Company’s ability to continue as a going concern
- t o provide an adequate return to shareholders by pricing products and services commensurately with the level
of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust
the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors
capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within
net debt, non-current and current borrowings,current maturity of long-term debts and lease liabilities, less cash
and cash equivalents, excluding discontinued operations, if any..

Annual Report 2024 421

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
The amounts managed as capital by the Company for the reporting periods are summarised as follows:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Non-current borrowings (Refer note 19A) 1,442.10 30,105.49
Current borrowings (Refer note 19B) 6,873.31 17,495.56
Lease liabilities (Refer note 19C) 419.61 1,043.65
Current portion of lease liabilities (Refer note 19D) 77.10 176.29
8,812.12 48,820.99
Less: Cash and cash equivalents (Refer note 12) (20,580.80) (494.80)
Net debt (A) (11,768.68) 48,326.19
Equity share capital (Refer note 17) 6,763.02 6,496.07
Other equity (Refer note 18) 158,824.03 64,261.97
Total capital (B) 165,587.05 70,758.04
Capital and net debt (C=A+B) 153,818.37 119,084.23
Gearing ratio (A/C) -7.65% 40.58%

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31
December 2024 and 31 December 2023.

There’s no breaches in the financial covenants of the borrowing that would permit the banks to immediately call
loans and borrowings in the reporting periods.”

50. Assets pledged as security

The carrying amount of assets pledged as security are:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Inventories and trade receivable (Refer note 10 and 11) 18,884.68 17,488.16
Other bank deposits (Refer note 8 and 13) 15.89 28.29
Other current financial assets (Refer note 15) 9,772.54 7,695.02
Other current assets (Refer note 16) 3,589.05 3,645.00
Other intangible assets (Refer note 5B) 5,460.04 5,450.74
Property, plant and equipment (Refer note 4A)* 75,467.69 53,955.78
Capital work-in-progress (Refer note 4B) 9,556.64 15,759.99
Right of use assets (Refer note 4C)* 7,116.13 6,223.14
Intangible assets under development (Refer note 5C) 43.69 -

*Exclusive of land for which no mortgages has been created.

422 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
51. Information under Section 186 (4) of the Companies Act, 2013 and Regulation 34 of the SEBI
(Listing Obligations and Disclosure Requirements), 2015
(` in million)
(i) Name of the Loanee Rate of Interest Secured/ Maximum As at Maximum As at
Unsecured balance 31 balance 31 December
outstanding December outstanding 2023
during the 2024 during the
year 2024 year 2023
Varun Beverages 2% +3 month Unsecured 1,110.25 1,110.25 1,077.74 1,077.74
Morocco SA SOFR*
Varun Beverages 2% +3 month Unsecured 826.71 826.71 802.51 802.51
(Zambia) Limited SOFR*
Varun Beverages 2% +3 month Unsecured 1,013.78 1,013.78 1,229.38 984.10
(Zimbabwe) (Private) SOFR*
Limited
Varun Beverages 2% +3 month Unsecured 5,655.41 5,655.41 2,124.71 2,123.62
RDC SAS SOFR*
Varun Beverages 2% +3 month SOFR* Unsecured 3,844.48 3,844.48 2,011.42 2,011.42
International DMCC
The Beverage Variable prime rate Unsecured 3,168.67 2,952.77 - -
Company Proprietary
Limited
IDVB Recycling 10% Unsecured - - 10.00 -
Operations Private
Limited
*Rate of interest revised w.e.f 01 July 2023
The above loans are given for business purposes.
(` in million)
(ii) Name of the Investee As at As at
31 December 2024# 31 December 2023#
Varun Beverages Morocco SA 6,179.18 6,179.18
Varun Beverages (Nepal) Private Limited 1,423.91 1,423.91
Varun Beverages Lanka (Private) Limited 3,149.55 3,149.55
Varun Beverages (Zambia) Limited 3,231.01 3,231.01
Varun Beverages (Zimbabwe) (Private) Limited 0.06 0.06
Lunarmech Technologies Private Limited 2,262.94 262.94
Varun Beverages RDC SAS 0.74 0.74
Varun Beverages International DMCC 20.68 20.68
Varun Beverages South Africa (PTY) Ltd. 0.05 0.05
The Beverage Company Proprietary Limited 4,037.26 -
VBL Mozambique, SA 1.32 -
Varun Foods Zimbabwe (Private) Limited 0.84 -
Clean Max Tav Private Limited 32.85 32.85
Huoban Energy 7 Private Limited 21.24 21.24
IDVB Recycling Operations Private Limited 500.00 130.07
Lone Cypress Ventures Private Limited 31.50 31.50
Huoban Energy 11 Private Limited 29.04 -
The Margao Urban Co-operative Bank Limited 0.01 0.01
The Goa Urban Co-operative Bank Limited* 0.00 0.00
*Rounded off to nil
#Exclusive of deemed investment (Refer note 6)
The above investments are made for business purposes.

Annual Report 2024 423

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
(iii) Guarantees outstanding, given on behalf of As at As at
31 December 2024 31 December 2023
Varun Beverages (Nepal) Private Limited 280.98 280.98
Varun Beverages (Zimbabwe) (Private) Limited 385.30 374.02
Varun Beverages (Zambia) Limited 1,027.48 332.47
Varun Beverages International DMCC 4,495.22 1,246.75
Varun Beverages RDC SAS 2,483.07 1,246.75
Varun Beverages Lanka (Private) Limited 290.27 114.79
The Beverage Company Proprietary Limited 6,814.08 -

The above financial guarantees are given on behalf of subsidiaries for business purposes and are in ordinary
course of business.

52. Financial instruments risk

Financials risk management objectives and policies
The Company is exposed to various risks in relation to financial instruments. The main types of financial risks are
market risk, credit risk and liquidity risk.

The management of the Company monitors and manages the financial risks relating to the operations of the
Company on a continuous basis. The Company’s risk management is coordinated at its head office, in close
cooperation with the management, and focuses on actively securing the Company’s short to medium-term cash
flows and simultaneously minimising the exposure to volatile financial markets. Long-term financial investments
are managed to generate lasting returns.

The Company does not engage in the trading of financial assets for speculative purposes. The most significant
financial risks to which the Company is exposed are described below.

52.1 Market risk analysis

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. The Company is exposed to market risk through its use of financial instruments and
specifically to foreign currency risk, interest rate risk and commodity price risk which result from its operating,
investing and financing activities. Contracts to hedge exposures in foreign currencies, interest rates etc. are
entered into wherever considered necessary by the management.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The functional currency of the Company is Indian Rupees (‘INR’ or ‘`’). Most of
the Company’s transactions are carried out in Indian Rupees. Exposures to currency exchange rates mainly arise
from the Company’s overseas sales and purchases, lending to overseas subsidiary companies, external commercial
borrowings etc. which are primarily denominated in US Dollars (‘USD’), Pound Sterling (‘GBP’), Australian Dollars
(‘AUD’), Euro (‘EUR’), Emirati Dirham (‘AED’) and South African Rand (‘ZAR’).

The Company has limited exposure to foreign currency risk and thereby it mainly relies on natural hedge. To
further mitigate the Company’s exposure to foreign currency risk, non-INR cash flows are continuously monitored
and derivative contracts are entered into wherever considered necessary.

424 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
The carrying amounts of the Company’s foreign currency denominated monetary items are restated at the end of
each reporting period. Foreign currency denominated financial assets and liabilities which expose the Company
to currency risk are as follows:
(in million)
31 December 2024 USD AUD EUR AED GBP ZAR
Financial assets
(i) Loans (non-current and current)
(a) Loans to related parties 145.41 - - - -
650.00
(ii) Trade receivables (current) 4.30 - - - - -
(iii) Other financial assets (current)
(a) Interest accrued on loan to related parties 10.16 - - - - 52.09
(b) Guarantee commission receivable 0.17 - - - - 4.14
(c) Other receivables 0.23 - - - - 0.35
Total financial assets 160.27 - - - - 706.58
Financial liabilities
(i) Trade payables 5.14 0.00* - - - -
(ii) Other current financial liabilities
(a) Payable for capital expenditure 3.77 - 3.32 - 0.01 -
Total financial liabilities 8.91 - 3.32 - 0.01 -

*Rounded off to Nil

31 December 2023 USD AUD EUR AED GBP ZAR

Financial assets
(i) Loans (non-current and current)
(a) Loans to related parties 84.21 - - - - -
(ii) Trade receivables (current) 9.04 - - - - -
(iii) Other financial assets (current)
(a) Interest accrued on loan to related parties 6.02 - - - - -
(b) Guarantee commission receivable 0.25 - - - - -
(c) Other receivables 0.06 - - - - -
Total financial assets 99.58 - - - - -
Financial liabilities
(i) Trade payables 5.57 - 0.00* 0.00* - -
(ii) Other current financial liabilities
(a) Payable for capital expenditure 3.46 - 9.63 - - -
Total financial liabilities 9.03 - 9.63 0.00* - -
*Rounded off to Nil

The following table illustrates the foreign currency sensitivity of profit and equity with regards to the Company’s
financial assets and financial liabilities considering ‘all other things being equal’ and ignoring the impact of taxation.
It assumes a +/- 1% change of the INR/USD, INR/AUD, INR/GBP, INR/EUR, INR/AED and INR/ZAR exchange rate
for the year ended at 31 December 2024 (31 December 2023: 1%). These are the sensitivity rates used when
reporting foreign currency exposures internally to the key management personnel and represents management’s
assessment of the reasonably possible changes in the foreign exchange rates. The sensitivity analysis includes
only outstanding foreign currency denominated monetary items at end of each period reported upon. A positive
number indicates an increase in profit or equity and vice-versa.

Annual Report 2024 425

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
If the INR had strengthened against the USD by 1% (31 December 2023 1%), GBP by 1% (31 December 2023: 1%),
AUD by 1% (31 December 2023: 1%), EUR by 1% (31 December 2023: 1%) AED by 1% (31 December 2023: 1%) and
ZAR by 1% (31 December 2023: 1%), the following would have been the impact:

(` in million)
Profit/(Loss) for the year Equity
Particulars
31 December 2024 31 December 2023 31 December 2024 31 December 2023
USD (129.60) (75.26) (129.60) (75.26)
GBP 0.01 - 0.01 -
Euro 2.96 8.86 2.96 8.86
AED - 0.00* - -
AUD 0.00* - 0.00* -
ZAR (32.10) - (32.10) -
*Rounded off to Nil

If the INR had weakened against the USD by 1% (31 December 2023 1%), GBP by 1% (31 December 2023: 1%), AUD

by 1% (31 December 2023: 1%), EUR by 1% (31 December 2023: 1%) AED by 1% (31 December 2023: 1%) and ZAR
by 1% (31 December 2023: 1%), the following would have been the impact:

(` in million)
Profit/(Loss) for the year Equity
Particulars
31 December 2024 31 December 2023 31 December 2024 31 December 2023
USD 129.60 75.26 129.60 75.26
GBP (0.01) - (0.01) -
Euro (2.96) (8.86) (2.96) (8.86)
AED - 0.00* - 0.00*
AUD 0.00* - 0.00* -
ZAR 32.10 - 32.10 -
*Rounded off to Nil

Exposures to foreign exchange rates vary during the year depending on the volume of the overseas transactions.
Nonetheless, the analysis above is considered to be representative of the Company’s exposure to currency risk.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company’s policy is to minimise interest rate cash flow risk exposures on
long-term financing. The Company is exposed to changes in market interest rates as some of the bank and other
borrowings are at variable interest rates and also loans have been advanced to subsidiary companies at variable
interest rates. All the Company’s term deposits are at fixed interest rates.

The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest
rates of +/- 1% (31 December 2023: +/- 1%). These changes are considered to be reasonably possible based on
management’s assessment. The calculations are based on a change in the average market interest rate for each
period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All
other variables are held constant.
(` in million)
Profit/(Loss) for the year Equity
Particulars
+1% -1% +1% -1%
31 December 2024 (133.00) 133.00 (133.00) 133.00
31 December 2023 (320.71) 320.71 (320.71) 320.71

426 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
purchase of pet chips and sugar and therefore require a continuous supply. In view of volatility of pet chips and
sugar prices, the Company also executes into various advance purchase contracts.

Commodity price sensitivity

The following tables shows the effect of price change in sugar and pet chips
(` in million)
Particulars Change in yearly average price Effect on profit before tax Effect on equity
31 December 2024
Sugar +1% -1% (143.00) 143.00 (143.00) 143.00
Pet chips +1% -1% (148.30) 148.30 (148.30) 148.30
(` in million)
Particulars Change in yearly average price Effect on profit before tax Effect on equity
31 December 2023
Sugar +1% -1% (127.44) 127.44 (127.44) 127.44
Pet chips +1% -1% (112.53) 112.53 (112.53) 112.53

Other price sensitivity

The Company is not exposed to any listed equity or listed debt price risk as it does not hold any investments in
listed entities.
52.2 Credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is operating
through a network of distributors and other distribution partners based at different locations. The Company is
exposed to this risk for various financial instruments, for example loans granted, receivables from customers,
deposits placed etc. The Company’s maximum exposure to credit risk is limited to the carrying amount of financial
assets recognised at end of each reporting period, as summarised below:
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Classes of financial assets-carrying amounts:
Investments (non-current) 20,960.11 14,499.54
Loans (current and non-current) 15,403.40 6,999.39
Trade receivables 1,997.63 2,129.42
Cash and cash equivalents 20,580.80 494.80
Bank balances other than mention above 6.28 28.29
Other financial assets (current and non-current) 10,574.63 8,259.87
69,522.85 32,411.31
The Company continuously monitors receivables and defaults of customers and other counterparties, and
incorporates this information into its credit risk controls. Appropriate security deposits are kept against the
supplies to customers and balances are reconciled at regular intervals. The Company’s policy is to deal only with
creditworthy counterparties.
In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to
any single counterparty. Trade receivables consist of a large number of customers of various scales and in different
geographical areas. Based on historical information about customer default rates, management considers the
credit quality of trade receivables. In case the receivables are not recovered even after regular follow up, measures
are taken to stop further supplies to the concerned customer. The expected credit loss is based on the five years
historically observed default rates over the expected life of the trade receivables and is adjusted for forward
looking estimates. Further, the Company has assessed the recoverability of grants receivable classified under
other current financial assets and accordingly provided for balance overdue for more than three years, amounting
to ` 236.45 million (31 December 2023: Nil).

Annual Report 2024 427

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
Movement in expected credit loss allowance on trade receivables
(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Balance at the beginning of the year 286.72 289.03
Loss/(Reversal) allowance measured at lifetime expected credit loss 3.10 (2.31)
Balance at the end of the year 289.82 286.72

The credit risk for cash and cash equivalents, bank deposits including interest accrued thereon and Government
grant receivables is considered negligible, since the counterparties are reputable banks with high quality external
credit ratings and State Government bodies. The credit risk for loans advanced to subsidiary companies including
interest accrued thereon is also considered negligible since operations of these entities are regularly monitored by
the Company and these companies have shown considerable growth.

In respect of financial guarantees provided by the Company, the maximum exposure which the Company is
exposed to is the maximum amount which the Company would have to pay if the guarantee is called upon. Based
on the expectation at the end of each reporting period, the Company considers that it is more likely than not that
such an amount will not be payable under the guarantees provided.

52.3 Liquidity risk analysis

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by
monitoring scheduled debt servicing payments for long-term financial liabilities and considering the maturity profiles
of financial assets and other financial liabilities as well as forecast of operational cash inflows and outflows. Liquidity
needs are monitored in various time bands, on a day-to-day basis, a week-to-week basis and a month-to-month basis.
Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements
are compared to available borrowing facilities in order to determine headroom or any shortfalls.

Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities
and the Company’s ability to avail further credit facilities subject to creation of requisite charge on its assets. The
Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

As at 31 December 2024, the Company’s non-derivative financial liabilities have contractual undiscounted maturities
as summarised below:
(` in million)
31 December 2024 Carrying 1 to 12 1 to 5 years Later than Total
value months 5 years contractual
cash flow
Borrowings (current and non-current) 8,315.41 6,885.51 1,285.57 275.29 8,446.37
Lease liabilities (current and non-current) 496.71 114.15 314.17 1,193.65 1,621.97
Trade payables 5,578.28 5,578.28 - - 5,578.28
Other financial liabilities (current) 5,883.00 5,883.00 - - 5,883.00
Total 20,273.40 18,460.94 1,599.74 1,468.94 21,529.62
(` in million)
31 December 2023 Carrying 1 to 12 1 to 5 years Later than Total
value months 5 years contractual
cash flow
Borrowings (current and non-current) 47,601.05 17,510.27 29,669.00 580.82 47,760.09
Lease liabilities (current and non-current) 1,219.94 282.21 1,026.78 829.45 2,138.44
Trade payables 4,918.61 4,918.61 - - 4,918.61
Other financial liabilities (current) 6,678.70 6,678.70 - - 6,678.70
Total 60,418.30 29,389.79 30,695.78 1,410.27 61,495.84

428 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
53. Fair value measurements
Financial instruments by categories
The carrying values and fair values of financial instruments by categories are as follows:
(` in million)
31 December 2024 31 December 2023
Particulars Notes
FVTPL Amortised cost FVTPL Amortised cost
Financial assets
(i) Non-current financial assets
(a) Investment (non-current) 6 60.55 20,899.56 31.51 14,468.03
(b) Loans 7 - 15,403.40 - 6,999.39
(c) Other financial assets 8 - 802.09 - 564.85
(ii) Current financial assets
(a) Trade receivables 11 - 1,997.63 - 2,129.42
(b) Cash and cash equivalents 12 1,319.21 19,261.59 - 494.80
(c) Bank balances other than (b) above 13 - 6.28 - 28.29
(d) Other financial assets 15 - 9,772.54 - 7,695.02
Total 1,379.76 68,143.09 31.51 32,379.80
Financial liabilities
(i)  Non-current borrowings 19A - 1,442.10 - 30,105.49
(ii) Non-current lease liabilities 19C - 419.61 - 1,043.65
(iii) Current financial liabilities -
(a) Borrowings 19B - 6,873.31 - 17,495.56
(b) Lease liabilities 19D - 77.10 - 176.29
(c) Trade payables 23 - 5,578.28 - 4,918.61
(d) Other 24 - 5,883.00 - 6,678.70
Total - 20,273.40 - 60,418.30

Valuation technique to determine fair value

“Cash and cash equivalents, other bank balances, trade receivables, loans, other current financial assets, trade
payables, current borrowings and other current financial liabilities approximate their carrying amounts largely due
to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is the amount
at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced
or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
• The fair values of the long term borrowings, loans and other deferred payments are determined by using
discounted cash flow method using the appropriate discount rate. The discount rate is determined using
other similar instruments incorporating the risk associated.

Fair value hierarchy

The financial assets measured at fair value are grouped into the fair value hierarchy as on 31 December 2024 and
31 December 2023 as follows: (also refer note 3.1)
(` in million)
31 December 2024 Date of valuation Total Fair value measurement using
Quoted prices Significant Significant
in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Assets measured at fair value:
Investment (non-current) 31 December 2024 60.55 - - 60.55
Cash and cash equivalents 31 December 2024 1,319.21 1,319.21 - -

Annual Report 2024 429

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
There have been no transfers of financial assets and financial liabilities between the levels during the year 2024
(` in million)
31 December 2023 Date of valuation Total Fair value measurement using
Quoted prices Significant Significant
in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Assets measured at fair value:
Investment (non-current) 31 December 2023 31.51 - - 31.51

54. Details of unhedged exposure in foreign currency denominated monetary items

Exposure in foreign currency - unhedged
Outstanding foreign currency exposure not being hedged against adverse currency fluctuation:
Particulars Period Foreign currency Local currency
Trade receivable 31 December 2024 USD 4.30 INR 367.92
31 December 2023 USD 9.04 INR 751.19

Loan given 31 December 2024 USD 145.41 INR 12,450.63

31 December 2023 USD 84.21 INR 6,999.39
31 December 2024 ZAR 650.00 INR 2,952.77
31 December 2023 ZAR - INR -

Other receivables 31 December 2024 USD 10.56 INR 903.93

31 December 2023 USD 6.32 INR 525.45
31 December 2024 ZAR 56.59 INR 257.06
31 December 2023 ZAR - INR -

Trade payables 31 December 2024 USD 5.14 INR 439.81

31 December 2023 USD 5.57 INR 462.62
31 December 2024 EUR - INR -
31 December 2023 EUR 0.00* INR 0.12
31 December 2024 AUD 0.00* INR 0.15
31 December 2023 AUD 0.00* INR 0.16

Payable for capital expenditure 31 December 2024 USD 3.77 INR 322.90
31 December 2023 USD 3.46 INR 288.67
31 December 2024 EUR 3.32 INR 295.85
31 December 2023 EUR 9.63 INR 886.46
31 December 2024 GBP 0.01 INR 0.68
31 December 2023 GBP - INR -
*Rounded off nil.

430 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
55. Financial ratios
(` in million)
Ratio Measurement Numerator Denominator As at As at Change Reason
unit 31 December 31 December for
2024 2023 variance if
more than
Ratio Ratio 25%
Current ratio Times Current assets Current liabilities 2.46 0.89 175.56% Refer note
(inclusive of below i
current maturities
of long-term
debts)
Debt-equity Times "Total debt Total equity 0.05 0.69 -92.29% Refer note
ratio [Non-current below i
borrowings
+ Current
borrowings+Lease
liabilities]"
Debt service Times Earnings available Debt service 3.19 1.28 148.30% Refer note
coverage ratio for debt service (interest and below i
[Profit/(loss) after lease payments
tax + Depreciation + principal
and amortisation repayments)
+ impairment +
finance cost +
profit on sale of
property, plant
and equipment,
investment +
other non cash
adjustments]
Return on Percentage Net profit after tax "Average 19.64% 28.19% -30.35% Refer note
equity ratio shareholder's below i
equity
[(opening
shareholder's
equity + closing
shareholder's
equity)/2]"
Inventory Times Costs of materials "Average 4.84 4.70 2.81% Not
turnover ratio consumed + inventories applicable
Purchases of [(opening
stock-in-trade inventories
+ Changes in + closing
inventories of inventories) /2]"
traded goods
Trade Times Revenue from Average trade 69.53 69.57 -0.05% Not
receivables operations receivables applicable
turnover ratio [(opening trade
receivables
+closing trade
receivables )/2]

Annual Report 2024 431

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
(` in million)
Ratio Measurement Numerator Denominator As at As at Change Reason
unit 31 December 31 December for
2024 2023 variance if
more than
Ratio Ratio 25%
Trade Times Net purchases "Average trade 13.00 11.72 10.97% Not
payables payables applicable
turnover ratio [(opening trade
payables + closing
trade payables
)/2]"
Net capital Times Revenue from "Working capital 4.53 (35.31) -112.84% Refer note
turnover ratio operations [current assets - below i
current liabilities
inclusive of
current maturities
of long-term
debts]"
Net profit Percentage Net profit after tax Revenue from 16.17% 14.05% 15.08% Not
ratio operations applicable
Return Percentage Earnings before Capital employed 19.19% 21.26% -9.77% Not
on capital interest and taxes = Tangible net applicable
employed worth* + total
debt** + deferred
tax liabilities
Return on Percentage Earnings before Total assets 17.55% 18.62% -5.77% Not
investment interest and tax applicable
(ROI)

Note:

i. D
 uring the year company had repaid majority of its borrowings from the proceeds of Qualified institutions
placement (QIP), due to which ratios are impacted significantly.

*Tangible net worth- equity share capital + other equity

**Total debt- non-current and current borrowings + non-current and current lease liabilities

56. 
Disclosure relating to provision:

(` in million)
Particulars As at As at
31 December 2024 31 December 2023
Opening balance 503.72 -
Addition 41.16 503.72
Reversal (250.76) -
Closing balance 294.12 503.72

The Company has made GST provision during the year 31 December 2023 towards tax rate difference based on the demand
order amounting to ` 120.08 million issued by Central GST Commissionerate, Jalandhar for the period 01 July 2017 to 30
September 2021 in the State of Punjab. Considering the demand order, Company has provided for GST liability on entire
sales of a product for the said period. The Company has not recovered the additional GST liability from its customers.
During the current year, the Company has accrued interest on above GST provision and also reversed provisions that has now
become time-barred as at reporting date.

432 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
Notes:
i. This provision represent estimates made mainly for probable claim arising out of dispute pending with
authority. The probability and the timing of the outflow with regard to the matter depend on the final
outcome of the dispute. Hence, the Company is not able to reasonably ascertain the timing of the outflow.

ii. Discounting obligation has not been considered as the dispute relates to Government Authority.

57. A
 dditional regulatory information not disclosed elsewhere in the financial information during
current and previous financial year.

a) The Company does not have any Benami property and no proceedings have been initiated or pending against
the Company for holding any Benami property, under the Benami Transactions (Prohibitions) Act, 1988 (45
of 1988) and the rules made thereunder.
b) The Company does not have any transactions with struck off companies under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956, except for the parties mentioned below:

Name of the struck Nature of Balance Relationship with Balance Relationship
off company transactions with outstanding as at the struck off outstanding as at with the struck
31 December 2024
struck off company company 31 December 2023 off
company
Ace Polypet Private Sale of goods (0.00)* No relationship (0.00)* No relationship
Limited
C A Trade Links Security deposit (0.09) No relationship (0.09) No relationship
Private Limited received
Ngen Auto Private Purchases - No relationship 0.00* No relationship
Limited
Thermadyne Purchases (0.38) No relationship - No relationship
Private Limited

*Rounded off to Nil

c) The Company does not have any charges which is yet to be registered with ROC beyond the statutory period.

d) The Company has not traded or invested in Crypto currency or Virtual Currency.

e) The Company has not advanced or provided loan to or invested funds in any entity(ies) including foreign
entities (Intermediaries) or to any other person(s), with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

f) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

g) The Company has not undertaken any transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Annual Report 2024 433

Summary of material accounting policies and other explanatory
information on the Standalone Financial Statements for the year ended
31 December 2024
h) The Company has not been declared a ‘Wilful Defaulter’ by any bank (as defined under the Companies Act,
2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve
Bank of India.

i) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017.

j) The borrowings obtained by the company from banks have been applied for the purposes for which such
loans were taken.

k) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both.

l) The Company has borrowings from banks on the basis of security of current assets. The quarterly returns
or statements of current assets filed by the Company with banks are in agreement with the books of
accounts.

58.  a) On 13 November 2024, the Company has entered into a binding agreement to acquire 100% stake in the
business conducted by SBC Beverages Tanzania Limited, Tanzania (SBCT), subject to approvals from PepsiCo
Inc., Fair Competition Commission (FCC) Tanzania and other regulatory approvals (if any) for a proposed
purchase consideration amounting to USD 154.50 million. The indicative time period for completion of the
acquisition is on or before 31 March 2025.
SBCT is engaged in the business of manufacturing and distribution of licensed (PepsiCo Inc.) branded
non-alcoholic beverages in Tanzania. SBCT has five manufacturing facilities located at one each in
Dar-es-Salaam, Mbeya, Arusha and two in Mwanza.

b) On 13 November 2024, the Company has entered into a binding agreement to acquire 100% stake in the
business conducted by SBC Beverages Ghana Limited, Ghana (SBCG), subject to approvals from PepsiCo
Inc. and other regulatory approvals (if any) for a proposed purchase consideration amounting to USD 15.06
million. The indicative time period for completion of the acquisition is on or before 28 February 2025.

SBCG is engaged in the business of manufacturing and distribution of licensed (PepsiCo Inc.) branded
non-alcoholic beverages in Ghana. SBCG has one manufacturing facility located at Accra, Ghana.

59. During the year ended 31 December 2024, pursuant to Qualified institutions placement (QIP), the Company has
raised ` 75,000 million through fresh issue of 132,743,362 equity shares of ` 2 each at a premium of ` 563 per share
on 19 November 2024. The Audit, Risk Management and Ethics Committee and the Board of Directors noted the
utilisation of funds raised through such fresh issue of equity shares to be in line with the object of the issue, the
details of which are as follows:
(` in million)
Particulars Amount as Amount utilised Amount Unutilised/
per placement upto 31 December (Excess spent) as at
document 2024 31 December 2024
Repayment / pre-payment, in part or in full, of
certain outstanding borrowings
56,000.00 50,475.46 5,524.54
availed by our Company and/or one of our
Subsidiaries
Inorganic acquisitions and general corporate
18,390.00 3,858.42 14,531.58
purposes
Share issue expenses# 610.00 611.10 (1.10)
Total 75,000.00 54,944.98 20,055.02

#excludes expenses of ` 4.28 million which is paid subsequent to year ended 31 December 2024.

Unutilised amounts have been kept in fixed deposits, mutual funds and QIP monitoring account.

434 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Summary of material accounting policies and other explanatory

information on the Standalone Financial Statements for the year ended
31 December 2024
60. Audit Trail
The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the
proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts)
Amendment Rules 2021 requiring companies covered under the Act, which uses accounting software for
maintaining its books of accounts, shall only use such accounting software which has a feature of recording
audit trail of each and every transaction, creating an edit log of each change made in the books of account
along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company uses two accounting software’s , which includes an accounting software for payroll processing
which is operated by the third party software service provider, for maintaining its books of account.

During the year, the audit trail (edit log) feature at the application level was operating for all relevant transactions
recorded in such softwares. However, the audit trail (edit log) feature was not enabled at the database level to log any
direct data changes for one accounting software operated by Company, used for maintenance of books of account.

61. Subsequent events occurred after the balance sheet date:

i The Board of Directors in their meeting held on 10 February 2025 have approved a payment of final dividend
of ` 0.50 (Rupee fifty paisa only) per equity share of the face value of ` 2 each, subject to the approval of
equity shareholders in ensuing annual general meeting of the Company.

ii The Company has invested in the equity shares of one of its subsidiaries named The Beverage Company
Proprietary Limited amounting to ` 4,128.04 million as on 02 January 2025.

62. The amounts of previous reported period have been regrouped/reclassified wherever considered necessary in
order to comply with financial reporting requirements.

The accompanying notes 1 to 62 are an integral part of the standalone financial statements.
As per our report of even date attached.
For J C Bhalla & Co For O P Bagla & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Varun Beverages Limited
Firm’s Registration No.: 001111N Firm’s Registration No.: 000018N/N500091
Akhil Bhalla Neeraj Kumar Agarwal Varun Jaipuria Raj Pal Gandhi
Partner Partner Whole Time Director Whole Time Director
Membership No.: 505002 Membership No.: 094155 DIN 02465412 DIN 00003649
Rajesh Chawla Ravi Batra
Chief Financial Officer Chief Risk Officer and
Place : Gurugram Group Company Secretary
Dated : 10 February 2025 Membership No. F- 5746

Annual Report 2024 435

ASSURANCE STATEMENTS
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

INDEPENDENT ASSURANCE
STATEMENT
INDEPENDENT REASONABLE ASSURANCE REPORT TO VARUN BEVERAGES LIMITED ON
NON-FINANCIAL BRSR CORE DISCLOSURES IN THE BUSINESS RESPONSIBILITY &
SUSTAINABILITY REPORT FOR THE FINANCIAL YEAR 2024

To,
The Board of Directors,
Varun Beverages Limited

We (“DEKRA India Private Limited” of “DEKRA”) have undertaken a reasonable assurance

engagement for Varun Beverages Limited (“the Company” or “VBL”) on VBL’s Sustainability Information
as Business Responsibility and Sustainability Reporting Core attributes included in the Business
Responsibility & Sustainability Report (the “BRSR” or the “Report”) for the year ended December 31,
2024. Our assurance engagement does not extend to information in respect of earlier periods or to any
other information included. This engagement was conducted by a multidisciplinary team including
assurance practitioners and engineers and experts, as per SEBI mandated Circular
SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 July12, 2023.

Reporting Requirement - Standard/Framework

The disclosures of Sustainability Information are prepared by VBL in accordance as mentioned under;
• Regulation 34(2)(f) of the Securities and Exchange Board of India (the “SEBI”) (Listing
Obligations and Disclosure Requirements), Regulations, 2015 as amended;
• Business Responsibility and Sustainability Reporting Requirements for listed entities per Master
Circular No. SEBI/HO/CFD/PoD2/ CIR/P/2023/120 dated July 11, 2023; and
• SEBI Circulars (SEBI/HO/CFD/CFD-SEC-2/P/ CIR/2023/122 dated July 12, 2023;
SEBI/HO/CFD/CFD-PoD-1/P/CIR/2024/177 dated December 20, 2024 and clarifications
thereto issued by SEBI.
• Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard.

Professional Standards Applied

We performed a reasonable assurance engagement in accordance with International Standard on
Assurance Engagements 3000 (Revised) Assurance Engagements other than Audits or Reviews of
Historical Financial Information.

Scope, Boundary & Limitation

Scope
The scope of work includes the assurance of the following 09 attributes as per Annexure I - Format of
BRSR Core disclosed in the BRSR report. The BRSR core requirements encompass essential
disclosures pertaining to the organization’s Environmental, Social and Governance (ESG).

Certificate No. DEKRABRSR2025C01R0 DEKRA India Private Limited Page 1 of 4

105D, 1st Floor, Vatika Mindscapes, Tower D, Sector 27D, Faridabad, Haryana, India – 121003

Annual Report 2024 437

 Boundary
Reporting boundary of Sustainability Information includes 36 Nos. Plants for manufacturing Beverages,
3 Nos. Plants for Backward Integration, 1 No. Registered Office, 1 No. Corporate Office and 67 Nos.
Sales Offices, Depot & Warehouse across India.

Limitations
We conducted a reasonable assurance engagement on select BRSR Core attributes, as defined within
the Business Responsibility and Sustainability Reporting (BRSR) framework. Certain limitations
inherent to the subject matter and the assurance process were identified, as detailed below;
• Assurance engagement did not include procedures related to the Report's prospective
information, encompassing targets, expectations, and ambitions. Consequently, no assurance
conclusion is offered regarding such prospective information. Additionally, matters pertaining to
Intellectual Property Rights and competitive issues are outside the scope of this assurance
• DEKRA's assurance process proceeded without any limitations impacting the defined scope.
• Data verification was conducted by DEKRA using a sampling methodology. The reporting
organization, VBL, bears sole responsibility for the authenticity of all data presented.
• Any reliance placed by a person or third party on the BRSR Report is entirely at their own risk.
• DEKRA did not evaluate the company's financial data or performance. DEKRA referenced
financial figures from the audited financial reports, and VBL will be responsible for the
appropriate application of this financial data. DEKRA assumes no liability for the accuracy or
completeness of the financial data contained within the Company's audited financial report.
• This assurance statement's applicability is restricted to the context defined by SEBI circular
SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 (July 12, 2023) and the Industry Standards for
BRSR Core reporting, as specified in SEBI circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2024/177
(December 20, 2024).
• The assessment is limited to data and information within the defined Reporting Period. Any data
outside the period in not considered within the scope of assurance.
• The assessment does not include a review of the Company’s strategy, or other related linkages
expressed in the report. These aspects are not within the scope the assurance engagement.
• The assurance does not extent to mapping the report with reporting frameworks other than
those specifically mentioned. Any assessments or comparisons with frameworks beyond the
specified ones are not considered in this engagement.
• Legal compliance is outside the scope of this assurance. The Company retains full responsibility
for compliance with all relevant laws and regulations.
• This assurance is based on the assumption that the Company's data is complete, sufficient, and
authentic.
Inherit Limitation
Inherent limitations in preparing the Company’s BRSR information requires the management to
establish or interpret the criteria, make determinations about the relevancy of information to be
included, and make estimates and assumptions that affect the reported information.
Measurement of certain amounts and BRSR Core metrics, some of which are estimates, is subject
to substantial inherent measurement uncertainty, for example, GHG emissions, water footprint,
energy footprint. Obtaining sufficient appropriate evidence to support our opinion/conclusion does not
reduce the uncertainty in the amounts and metrics.

Certificate No. DEKRABRSR2025C01R0 DEKRA India Private Limited Page 2 of 4

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Responsibilities for the VBL’s Management

Management of the Company is responsible for:
• Selecting or establishing suitable criteria for preparing the Sustainability Information, taking into
account applicable law and regulations related to reporting the Sustainability Information, if any,
related to reporting on the Sustainability Information, Identification of key aspects, engagement
with stakeholders, content, preparation and presentation of the Identified Sustainability
Information in accordance with the reporting requirement.
• The preparation and fair presentation of the Sustainability Information in accordance with the
SEBI BRSR Framework.
• Designing, implementing and maintaining internal control relevant to the preparation of the
Sustainability Information in accordance with the SEBI BRSR Framework, to enable the
preparation of such information that is free from material misstatement, whether due to fraud or
error.
Those charged with governance are responsible for overseeing the Company’s sustainability reporting
process.

Our Responsibility
We are responsible for:
• Planning and performing the engagement to obtain reasonable assurance about whether the
Sustainability Information is free from material misstatement, whether due to fraud or error;
• Forming an independent opinion, based on the evidence we have obtained; and
• Reporting our opinion to the Directors of VBL.
As we are engaged to form an independent opinion on the Sustainability Information as prepared by
management, we are not permitted to be involved in the preparation of the Sustainability Information
as doing so may compromise our independence.

Our Independence, Quality Control and Statement of Competency

We have complied with the independence and other ethical requirement of the Code of Ethics for
Professional issued by the International Ethics Standards Board for Accountants, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality
and professional behavior. DEKRA applied Internal Quality Control and accordingly maintains a
comprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards, and applicable legal and regulatory
requirements.

Our work was carried out by an independent and multidisciplinary team including assurance
practitioners, engineers, and experts, in particular, to assist with determining the reasonableness of
VBL’s Sustainability Information. DEKRA assurance team, to the best of knowledge, was not involved
in any non-audit / non-assurance work with the Company and its entities could lead to any Conflict of
Interest. DEKRA was not Involved in the preparation of any statements or data included in the Report
except the Assurance Statement for the VBL. Dekra maintains complete impartiality during the
assurance process. We did not provide any services to VBL in the scope of assurance for the reporting
period that could compromise the independence or impartiality of our work.

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Annual Report 2024 439

 Summary of the Work we Performed as the Basis for our Assurance Opinion
A reasonable assurance engagement involves performing procedures to obtain evidence about the
Sustainability Information. The nature, timing and extent of procedures selected depend on professional
judgment, including the assessment of risks of material misstatement, whether due to fraud or error, in
the Sustainability Information. In making those risk assessments, we considered internal control
relevant to VBL’s preparation of the Sustainability Information. A reasonable assurance engagement
also includes:
• Evaluating the suitability in the circumstances of VBL’s use of the Standard/Framework, as the
basis for preparing the Sustainability Information;
• Evaluating the appropriateness of measurement and evaluation methods, reporting policies
used and the reasonableness of estimates made by VB;
• DEKRA conducted interviews with key representatives, including data owners and decision-
makers from different functions of VB;
• DEKRA performed sample-based reviews of the mechanisms for implementing Sustainability-
related policies and data management (qualitative and qualitative); and
• Evaluating the disclosures in, and overall presentation of, the Sustainability Information.
We believe that the evidences we have obtained is sufficient and appropriate to provide a basis for our
opinion. Onsite audit for verification conducted at VBL’s Corporate Office on 17th to 19th, Noida Plant 1
on 20th February and Noida Plant 2 on 21st February of 2025, Online audit of Greater Noida – 1, Greater
Noida – 2 & Sandila Plants on 3rd March and desk review for the remaining plants data.

Assurance Conclusion
In our opinion, VBL’s Sustainability Information as Business Responsibility and Sustainability Reporting
Core attributes included in the Business Responsibility & Sustainability Report (the “BRSR” or the
“Report”) for the year ended December 31, 2024 is prepared, in all material respects, in accordance
with the Reporting Requirement.

Purpose and Restriction on Distribution and Use

Our Reasonable Assurance report has been prepared and addressed to the Board of Directors of the
Company at the request of the Company solely, to assist the Company in reporting on Company’s
sustainability performance and activities. Accordingly, we accept no liability to anyone, other than the
Company. Our Reasonable Assurance report should not be used for any other purpose or by any
person other than the addressees of our report. We neither accept nor assume any duty of care or
liability for any other purpose or to any other party to whom our report is shown or into whose hands it
may come without our prior consent in writing.

Kanwaldeep Singh Sachdev Vivek Nigam

General Manager Audit Division Head Sustainability Services

DEKRA India Private Limited

Certificate No. : DEKRABRSR2025C01R0
Date : 4th March 2025
Place : Faridabad
Email : vivek.nigam@dekra.com

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105D, 1 Floor, Vatika Mindscapes, Tower D, Sector 27D, Faridabad, Haryana, India – 121003

440 Varun Beverages Limited

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

BR. No. 50255790

Independent Assurance Statement

To the Management and Stakeholders of Varun Beverages Limited

DQS India have been engaged by Varun Beverages Limited (VBL) to provide limited assurance of their Sustainability
Report for 2024’. The engagement took place in February 2025 and concluded in March 2025.

Scope of Assurance
The scope of our assurance engagement encompassed the ‘Sustainability Report’ part of the ‘Annual report 2024’ (final
version submitted on 10th March 2025) and focused on all figures, statements and claims related to sustainability during
the reporting period 1 January 2024 to 31 December 2024. More specifically, this included:

• Non-financial statements, information and performance data contained within the Sustainability Report.
• VBL management approach of material issues; and
• VBL reported data and information as per the requirements of the Global Reporting Initiative Standards.

Our Limited level assurance engagement was performed in accordance with:

• ISAE 3000 (Revised): International Standard on Assurance Engagements (Assurance on Non-Financial

Information)
• ISO 14064:2019 Part 3: Specification with guidance for the verification and validation of greenhouse gas
statements

The scope of the assurance engagement covered 36 plants for manufacturing beverages, 3 plants for backward
integration in India and 12 plants for manufacturing in International territories.

The audit was conducted remotely on the corporate functions and on selected sampled sites. The site selections followed
the risk-based approach and tried to ensure representativeness of various processes and geographical boundaries within
the organization.

Additionally, the scope of the audit included review of the immediate corrections made in the report where gaps were
identified as part of the assessment process.

Responsibility of Varun Beverages Limited

The preparation and presentation of the selected KPIs in the VBL Sustainability Report 2024 are the responsibility of the
management of Varun Beverages Limited. VBL’s management is responsible for establishing and maintaining the internal
controls and processes to ensure the collection, calculation, and reporting of accurate and reliable data for these KPIs.

Our Responsibility
Our responsibility is to express a limited assurance conclusion based on the work performed regarding the accuracy and
completeness of the selected KPIs as presented in the VBL Sustainability Report 2024.

Deutsch Quality Systems (India)

Private Limited www.dqsglobal.com
Vaishnavi Tech Park, Sy.No.16/1 and 17/2,
Bellandur Gate, Sarjapur Main Road, Ambalipura,
Bengaluru - 560102 Karnataka, India

Annual Report 2024 441

 BR. No. 50255790

Assurance Methodology
The limited assurance engagement was conducted through the following steps:

• Reviewing the Sustainability Report with respect to the in-accordance criteria of GRI requirements, including
verification of material topics identification by the organization and if they have been adequately disclosed along
with additional disclosures relevant to their operations.
• Evaluation of the data and information underlying the selected KPIs for accuracy and consistency.
• Interviews with key personnel responsible for the collection, monitoring, and reporting of sustainability data.
• Review of internal documentation, data records, and the control environment for managing the relevant
sustainability metrics.
• Examination of the reporting and calculation methodologies used to present the selected KPIs in the
sustainability report.
• DQS verification process included the following GRI disclosures:
o General disclosures: GRI-2
o Materiality assessment and disclosures: GRI-3
o Disclosures of Material topics as listed below:
▪ Water Management : GRI 303-1, GRI 303-2, GRI 303-3, GRI 303-4, GRI 303-5;
▪ GHG Emissions: GRI 305-1, GRI 305-2, GRI 305-3, GRI 305-4, GRI 305-5;
▪ Corporate Citizenship: GRI 304-3, GRI 413-1, GRI 413-2.
▪ Business Ethics & Corporate Governance: GRI-2, GRI 205-1, GRI 205-2, GRI 205-3, GRI 206-1
GRI 406-1
▪ Business Performance: GRI 201-1*
▪ Employee Health & Safety: GRI 403-1 to GRI 403-7, GRI 403-8*, GRI 403-9*, GRI 403-10*
▪ Product Safety & Quality and Consumer Health & Nutrition: GRI 416-1, GRI 416-2.
▪ Packaging Lifecycle Management: GRI 301-3.
o In addition to material topics the following disclosures were also evaluated:
▪ Material Management: GRI 301-1, GRI 301-2, GRI 301-3
▪ Energy mangement: GRI 302-1*, GRI 302-2, GRI 302-3, GRI 302-4, GRI 302-5
▪ Waste management – GRI 306-1, GRI 306-2, GRI 306-3*, GRI 306-4*, GRI 306-5*
▪ Supplier environmental assessment – GRI 308-1*, GRI 308-2
▪ Employment – GRI 401-1, GRI 401-2, GRI 401-3
▪ Labour/management relation – GRI 402-1
▪ Training & education – GRI 404-1, GRI 404-2, GRI 404-3
▪ Diversity & equal opportunity – Gri 405-1*, GRI 405-2*
▪ Freedom of association and collective bargaining – GRI 407-1
▪ Supplier Social assessment – GRI 414-1*, GRI 414-2
▪ Marketing & labelling – GRI 417-1, GRI 417-2, GRI 417-3
▪ Customer Policy – GRI 418-1
▪ Market Presence – GRI 202-1, GRI 202-2
▪ Indirect economic impacts – GRI 203-1, GRI 203-2
▪ Procurement Practices – GRI 204-1
* Verified by third party

Deutsch Quality Systems (India)

Private Limited www.dqsglobal.com
Vaishnavi Tech Park, Sy.No.16/1 and 17/2,
Bellandur Gate, Sarjapur Main Road, Ambalipura,
Bengaluru - 560102 Karnataka, India

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BR. No. 50255790

Observations and Findings

In addition to providing limited assurance, we noted the following observations during our engagement:

• Stakeholder Inclusivity:
We found no evidence of any key stakeholder groups being excluded from VBL's stakeholder engagement
process. VBL has demonstrated a proactive and inclusive approach, ensuring that diverse stakeholder
perspectives are considered throughout their sustainability strategy and reporting efforts.
• Materiality:
We are not aware of any significant material issues concerning VBL’s sustainability performance that have been
omitted from the report. VBL has thoroughly identified and addressed relevant material sustainability topics,
ensuring transparency and alignment with both stakeholder expectations and industry standards.
• Responsiveness:
VBL has established robust processes to effectively respond to stakeholder concerns and manage its material
sustainability issues. However, the assessment was focused on the verification of the selected KPIs and did not
extend beyond the agreed scope of assurance.
• Impact:
VBL has implemented effective processes to measure, evaluate, and manage the environmental and social
impacts associated with its operations. These processes are aligned with key performance indicators (KPIs)
relevant to the nature of its business and identified material sustainability issues.
• Reliability:
Data management systems are established and centralized for the collection and calculation of data associated
with the selected KPIs. These systems provide an adequate foundation for the reliability of the reported data,
though certain operational data depend on measurement arrangements at the site level.

Limitations and Exclusions

Excluded from the scope of our work is assurance of information relating to:

• Activities outside the defined assurance period.

• Positional statements of a descriptive or interpretative nature, or of opinion, belief, aspiration, or commitment
to undertake future actions.
• Other information included in the report other than the universal disclosures (GRI-2 and GRI-3) and disclosures
related to material topics and mentioned disclosures.
• Since VBL had a conclusive third-party verification report available for selected key performance indicators of
few material topics, as part of Business Responsibility and Sustainability Report (BRSR) Core reporting, the same
were not repeated during DQS verification.

The following limitations should be noted:

• This limited assurance engagement relies on a risk-based selected sample of sustainability data and the
associated limitations that this entails.
• The reliability of the reported data is dependent on the accuracy of metering and other production measurement
arrangements employed at site level, which were not addressed as part of this assurance.

Deutsch Quality Systems (India)

Private Limited www.dqsglobal.com
Vaishnavi Tech Park, Sy.No.16/1 and 17/2,
Bellandur Gate, Sarjapur Main Road, Ambalipura,
Bengaluru - 560102 Karnataka, India

Annual Report 2024 443

 BR. No. 50255790

• This independent statement should not be relied upon to detect all errors, omissions, or misstatements that
may exist.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the selected Key Performance
Indicators (KPIs), as outlined above and reported in the VBL Sustainability Report 2024, are not presented fairly,
in all material respects, in accordance with the applicable criteria.

Statement of Independence, Integrity, and Competence

DQS ensures that appropriately qualified individuals are selected for assurance engagements based on their
qualifications, training, and experience. The outcome of all verification and assurance assessments is internally reviewed
by senior management to ensure a rigorous and transparent approach is consistently applied. DQS provided assurance
services to review VBL’s sustainability data and processes, ensuring alignment with relevant ISO standards and risk
management principles. The assurance assessments are the only work undertaken by DQS for VBL, thus safeguarding
our independence and impartiality throughout the engagement.

On behalf of the assurance team

11th March 2025

Bengaluru, India

Dr. Murugan Kandasamy

CEO & Managing Director

Deutsch Quality Systems (India) Private Limited

Deutsch Quality Systems (India)

Private Limited www.dqsglobal.com
Vaishnavi Tech Park, Sy.No.16/1 and 17/2,
Bellandur Gate, Sarjapur Main Road, Ambalipura,
Bengaluru - 560102 Karnataka, India

444 Varun Beverages Limited

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