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Varun Beverages Limited July 28, 2026 Q2 & H1 CY2026 Results Presentation
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Disclaimer This communication contains certain forward-looking statements relating to the business, financial performance, strategy and results of Varun Beverages Limited (“VBL” or the “Company”) and/ or the industry in which it operates. Such forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward- looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. Given these uncertainties and other factors, viewers of this communication are cautioned not to place undue reliance on these forward-looking statements. 2
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3 Company Overview Chairman’s Message Sustainability Initiatives Q2 & H1 CY2026 Results Overview Performance Highlights Table of Contents
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337 454 653 737 821 839 607 88 115 149 176 303 374 223 425 569 802 913 1,124 1,213 830 2020 2021 2022 2023 2024 2025 H1 CY2026 India International 4 Total Sales Volumes (mn Cases*) 2020-2025: Sales Volume CAGR: ~23.3% Note: *A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each Key player in the global beverage industry and the second largest franchisee of PepsiCo in the world (outside US) with franchise operations spanning across 10 countries and with distribution rights in additional 4 countries. Note: Map not to scale 4 Company Snapshot
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5 # Manufacturing & Distribution of PepsiCo’s snack foods in Morocco and Zimbabwe and distribution in Zambia; 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. Carbonated Soft Drinks Brands licensed by PepsiCo: Own Brands^: Fruit Pulp / Juice Based Drinks Sports Drink Snacks# Club Soda Energy Drink Packaged WaterIce TeaCarbonated Juice Based Drinks Carbonated Soft Drinks Energy Drink Packaged Water Dairy Based Beverages* Complete Brand Portfolio Mixers
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6 • Production Facilities • Sales & Distribution – GTM & Logistics • In-outlet Management – Visi-Coolers • Consumer Push Management (BTL) - Market Share Gains 34+ Years of Association (agreement in India valid till April, 2049) 90%+ of PepsiCo India Sales Volume Demand Delivery Demand Creation • Trademarks • Formulation through Concentrate • Product & Packaging innovation through investment in R&D • Consumer Pull Management (ATL) - Brand Development Symbiotic Relationship with PepsiCo
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7 VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN ▪ Robust distribution network with strong distribution infra of vehicles, including EVs ▪ Wide network of owned vehicles ▪ Wide presence in retail outlets through visi-coolers ▪ VBL - local level promotion and in-store activation ▪ PepsiCo - brand development & consumer marketing ▪ Experienced sales team ▪ Responsible for category value/volume growth ▪ Path created for reaching out to every 5 th person in the world ▪ Production optimization ▪ Backward integration (3 exclusive + 19 integrated plants) ▪ Innovation (packaging etc.) ▪ Working capital efficiencies ▪ Disciplined capex investment ▪ Territory acquisition ▪ 53 state-of-the-art production facilities ▪ 38 in India & 15 in International territories DISTRIBUTION & WAREHOUSING CUSTOMER MANAGEMENT IN-MARKET EXECUTION COST EFFICIENCIES CASH MANAGEMENT MANUFACTURING Other Raw Materials Bottling Concentrate (PepsiCo) SOLID INRASTRUCTURE ROBUST SUPPLY CHAIN DEMAND DELIVERY MARKET SHARE GAINS MARGIN EXPANSION ROE EXPANSION / FUTURE GROWTH Key Player in the Beverage Industry – Business Model 7
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Chairman’s Message Commenting on the performance, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: 8 “We are pleased to report a strong performance during this quarter across our markets. Consolidated sales volumes grew by 19.8% and, together with improved realizations, translated into a 20.4% increase in net revenue from operations. EBITDA increased by 17.2% to Rs. 23,430.4 million in Q2 CY2026. In India, we saw healthy volume growth in twenties since the onset of season i.e. from March onwards except for the month of April which was about flat resulting in overall volume growth for the quarter of 14.4%. Our expanded manufacturing footprint, extensive distribution network and continued investments in chilling infrastructure continued to drive growth. We also extended our exclusive bottling and trademark licence agreement with PepsiCo in India until April 2049 and removed the earlier restriction requiring VBL to operate solely as an SPV for PepsiCo's business, strengthening our long-term partnership and creating greater operational flexibility to pursue opportunities that can deliver scale, and synergies. We also entered a strategic alliance with Asahi Group Holdings to introduce the iconic CALPIS brand in India, marking our entry into the value-added fermented dairy beverage category. The international business maintained strong momentum. Twizza, in South Africa, helped overcoming capacity constraints, while strengthening our manufacturing footprint and route-to-market capabilities in South Africa. We also entered into an agreement to acquire the business of Devyani Food Industries (Kenya) Limited, which will provide us with the ready GTM in Kenya for expansion into carbonated soft drinks and energy drinks. In accordance with our dividend policy, the Board of Directors has approved an interim dividend of 25% of face value, i.e., Rs. 0.50 per share, resulting in a total cash outflow of approximately ~Rs. 1,691 million. Looking ahead, we remain confident in the long-term growth potential across our markets, supported by favourable demographics, rising disposable incomes and increasing consumption of packaged beverages. With adequate capacities, a growing and diversified portfolio, strong partnerships and an extensive distribution network, we are well positioned to deliver sustained and profitable growth and create long-term value for all our stakeholders.”
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Key Developments 9 1. Revised Exclusive bottling appointment and trademark license agreement – India (PepsiCo): ▪ Varun Beverages Limited (“VBL”) and PepsiCo Inc. and its affiliates (“PepsiCo”) have entered into a revised Exclusive bottling appointment and trademark license agreement for India (“EBA”) on May 21, 2026. ▪ Key revisions include: ▪ (i) extension of the EBA term to April 30, 2049 (from April 30, 2039), and ▪ (ii) removal of the earlier restriction requiring VBL to operate solely as an SPV for PepsiCo's business, providing greater operational flexibility to explore, expand and avail benefits of scale and synergies. 2. Entered into a franchise agreement with Asahi Group for “CALPIS” Brand in India: ▪ On 18 June 2026, VBL has entered into a business alliance with Asahi Group Holdings to introduce and commercialize the CALPIS brand in India through a franchise arrangement, expanding its portfolio of non-alcoholic beverages. ▪ CALPIS, is a Japan's iconic fermented milk-based beverage brand with a legacy of over 100 years. The brand offers both concentrate and ready-to-drink products. VBL plans to launch CALPIS, in India with Original and Mango variants. 4. Dividend: ▪ In line with the guidelines of Company’s dividend policy, the Board of Director’s have approved an interim dividend @ 25% of face value i.e. Rs. 0.50 per share. Total cash outflow would be ~Rs. 1,691 million. 3. Entered into an agreement for acquisition of business in Devyani Food Industries (Kenya) Limited “DFIKL”: ▪ On 06 July 2026, VBL Industries (Kenya) Limited, a wholly-owned subsidiary of VBL has entered into a Business Transfer Agreement to acquire the business in DFIKL, a promoter group company, for a purchase consideration of USD 32 million (~INR 3,050 million, 1 USD = 95.30 INR) based upon the valuation of net assets from an independent third-party valuer. ▪ DFIKL has net revenue of over Rs. 3,000 million for value added dairy, juices, packaged drinking water, etc. for the financial year ended March 2026. DFIKL also has an existing GTM infrastructure in place.
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267 mn 274 mn 215 mn 237 mn 312 mn 363 mn 390 mn 467 mn - 100 200 300 400 500 Q3 2024 Q3 2025 Q4 2024 Q4 2025 Q1 2025 Q1 2026 Q2 2025 Q2 2026 Quarterly Sales Volumes (Category-wise mn unit cases) Results Overview 10 70,174 84,512 1,25,843 1,50,254 Q2 2025 Q2 2026 H1 2025 H1 2026 Revenue 19,988 23,430 32,627 38,720 Q2 2025 Q2 2026 H1 2025 H1 2026 EBITDA Rs. mn Rs. mn 13,255 15,254 20,568 24,041 Q2 2025 Q2 2026 H1 2025 H1 2026 PAT Rs. mn 20.4% 25.8%25.9%27.7%28.5% 17.2% 15.1% 19.4% 18.7% 16.9% 10.2% 16.3% 19.8% 2.4% Period Q3 2024 Q3 2025 Q4 2024 Q4 2025 Q1 2025 Q1 2026 Q2 2025 Q2 2026 CSD 200 75% 202 74% 158 73% 170 72% 234 75% 268 74% 291 75% 351 75% NCB 11 4% 12 4% 8 4% 10 4% 22 7% 27 7% 28 7% 30 7% Water 56 21% 60 22% 49 23% 57 24% 56 18% 68 19% 71 18% 85 18%
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11 Consolidated Profit & Loss Statement Particulars (Rs. million) Q2 2026 Q2 2025 YoY(%) H1 2026 H1 2025 YoY (%) 1. Income (a) Revenue from operations 86,505.70 71,630.21 20.8% 153,721.07 128,430.47 19.7% (b) Excise Duty 1,993.38 1,456.50 36.9% 3,466.85 2,587.41 34.0% Net Revenues 84,512.32 70,173.71 20.4% 150,254.22 125,843.06 19.4% (c) Other income 1043.81 771.58 35.3% 1479.09 1,052.16 40.6% 2. Expenses (a) Cost of materials consumed 36,534.94 28,454.04 28.4% 68,056.96 55,164.75 23.4% (b) Purchase of stock-in-trade 1,826.30 991.23 84.2% 2,478.41 1,703.07 45.5% (c) Changes in inventories of FG, WIP and stock-in-trade (297.62) 2,465.75 -112.1% (3,015.30) 333.83 -1003.2% (d) Employee benefits expense 6,832.37 5,496.58 24.3% 13,025.10 10,611.60 22.7% (e) Finance costs 569.23 365.47 55.8% 1,054.48 776.71 35.8% (f) Depreciation and amortisation expense 4,090.35 3,061.51 33.6% 7,658.29 5,786.64 32.3% (g) Other expenses 16,185.96 12,778.38 26.7% 30,989.41 25,402.44 22.0% Total expenses 65,741.53 53,612.96 22.6% 120,247.35 99,779.04 20.5% EBITDA 23,430.37 19,987.73 17.2% 38,719.64 32,627.37 18.7% 3. Profit before share of loss of associates and joint ventures (1-2) 19,814.60 17,332.33 14.3% 31,485.96 27,116.18 16.1% 4. Share of loss of associates and joint ventures (42.83) (11.89) -260.2% (82.30) (17.66) -366.0% 5. Profit before tax (3+4) 19,771.77 17,320.44 14.2% 31,403.66 27,098.52 15.9% 6. Tax expense 4,518.22 4,065.56 11.1% 7,362.98 6,530.06 12.8% 7. Net profit after tax (5-6) 15,253.55 13,254.88 15.1% 24,040.68 20,568.46 16.9%
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Discussion on Financial & Operational Performance • Consolidated sales volume grew by 19.8% to 466.7 million cases in Q2 CY2026 from 389.7 million cases in Q2 CY2025, driven by volume growths of 14.4% in India and 38.4% in International territories. • In India, we saw healthy volume growth in twenties since the onset of season i.e. from March onwards except for the month of April which was about flat resulting in overall volume growth for the quarter of 14.4%. • International volumes includes 11.8 million cases during the quarter from the acquisition of Twizza in South Africa. • Net Revenue from operations grew by 20.4% in Q2 CY2026 to Rs.84,512.3 million from Rs. 70,173.7 million in Q2 CY2025. • Realization per case - beverages improved by 1.2% at the consolidated level with improved realizations in international territories. 12 Sales Volumes / Net Revenues Particulars Consolidated Standalone in Rs. Million Q2 CY26 Q2 CY25 Growth Q2 CY26 Q2 CY25 Growth Sales volumes (mn unit cases*) 466.7 389.7 19.8% 346.5 302.9 14.4% Revenue – Beverage sales 81,818.5 67,484.1 21.2% 58,774.1 51,686.4 13.7% Revenue – Non beverage sales 2,693.8 2,689.6 0.2% 1,188.0 1,363.8 -12.9% Total Revenue 84,512.3 70,173.7 20.4% 59,962.1 53,050.2 13.0% Realization per case – Beverages 175.3 173.2 1.2% 169.6 170.6 -0.6% Note: *A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each
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Discussion on Financial & Operational Performance 13 • PAT increased by 15.1% to Rs. 15,253.6 million in Q2 CY2026 from Rs. 13,254.9 million in Q2 CY2025 driven by strong volume growth in India and International territories. • Depreciation increased by 33.6% on account of commissioning of new plants in India last year which were not present in the base quarter and on account of acquisition of Twizza in South Africa. • Finance cost increased by 55.8% on account of acquisition of Twizza in South Africa in the current quarter. The income on surplus cash in India is accounted as other income. PAT • EBITDA increased by 17.2% to Rs. 23,430.4 million in Q2 CY2026 and EBITDA margins declined by 76 bps to 27.7% in Q2 CY2026 due to consolidation of Twizza business which currently has lower margins. • In India, EBITDA margins improved by 38 bps driven by operational efficiencies from healthy volume growth which were partially offset by higher other expenses primarily transportation and distribution costs. EBTIDA • Gross margins improved by 44 bps at 55.0% in Q2 CY2026, with higher mix of International business. • In India, early stocking of key raw materials and savings in sugar consumption with higher mix of low sugar / no sugar products helped in maintaining gross margins despite the high inflationary raw material environment. • In H1 CY2026, mix of Low sugar / No sugar products has increased to ~ 73% of our consolidated sales volumes. Gross Margins
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14 Consolidated Balance Sheet Particulars (Rs million) 30-Jun-26 31-Dec-25 Equity and liabilities Equity (a) Equity share capital 6,764.59 6,763.98 (b) Other equity 210,941.95 189,023.06 (c) Non-controlling interest 1,816.58 1,622.51 Total equity 219,523.12 197,409.55 Liabilities Non-current liabilities (a) Financial liabilities (i) Borrowings 16,972.80 5,404.49 (ia) Lease liabilities 4,299.06 3,997.96 (b) Provisions 1,687.04 1,904.61 (c) Deferred tax liabilities (Net) 7,819.91 6,191.92 (d) Other non-current liabilities 3.19 3.58 Total non- current liabilities 30,782.00 17,502.56 Current liabilities (a) Financial liabilities (i) Borrowings 12,440.97 14,836.70 (ia) Lease liabilities 1,122.51 842.68 (ii) Trade Payables 20,190.61 14,013.04 (iii) Other financial liabilities 6,268.13 5,953.85 (b) Other current liabilities 7,846.68 4,465.13 (c ) Provisions 548.77 505.26 (d) Current tax liabilities (Net) 3,382.26 122.79 Total current liabilities 51,799.93 40,739.45 Total liabilities 82,581.93 58,242.01 Total Equity and liabilities 302,105.05 255,651.56 Particulars (Rs million) 30-Jun-26 31-Dec-25 Assets Non-current assets (a) Property, plant and equipment 146,358.86 138,373.67 (b) Capital work in progress 4,877.67 2,663.04 (c) Right of Use of Assets 13,912.32 13,690.47 (d) Goodwill 8,231.32 3,542.13 (e) Other intangible assets 15,464.33 11,983.00 (f) Intangible assets under development 0.00 44.83 (g) Investment in associates and joint ventures 2,240.68 1632.62 (h) Financial assets 1,784.03 1,499.42 (i) Deferred tax assets (Net) 241.60 244.40 (j) Other non-current assets 3,653.68 3,017.55 Total non-current assets 196,764.49 176,691.13 Current assets (a)Inventories 39,896.85 29,517.89 (b) Financial assets (i)Trade receivables 16,477.47 12,490.31 (ii)Cash and cash equivalents 21,257.42 17,841.77 (iii)Other bank balances 4,426.63 2,143.14 (iv) Others 16,822.63 11,721.11 (c) Current tax assets (Net) 246.85 59.66 (d) Other current assets 6,146.31 5,120.15 Total current assets 105,274.16 78,894.03 Assets classified as held for sale 66.40 66.40 Total assets 302,105.05 255,651.56
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Discussion on Financial & Operational Performance 15 • During H1 CY2026, the net capitalized capex amounted to ~Rs. 9,500 million which includes – • ~Rs. 2,000 million for brownfield expansions in India including VAD beverage line in Supa (India). • ~Rs. 1,000 million in Zimbabwe – Snacks manufacturing plant. • ~Rs. 4,000 million towards market infrastructure ,i.e, visi-coolers, glass bottles, pallets, vehicles, etc.. • Balance amount is on account of foreign exchange fluctuations. • As on June 30, 2026, the CWIP of ~Rs. 4,900 million is primarily towards expansion in South Africa, and a CSD line in Kenya. • In addition, there is an in-organic capex of Rs. 11,314 million on account of the acquisition of Twizza (Pty) Limited, South Africa. Capex (capitalization) • VBL India continued to remain Net debt free with a free cash of ~ Rs.14,941 million, however, at the consolidated level net debt stood at ~ Rs. 3,730 million as on June 30, 2026, on account of acquisition of Twizza in South Africa. • Company’s long-term rating for bank loan facilities from CRISIL (an S&P Global Company) is reaffirmed as CRISIL AAA/Stable. Debt
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Performance Highlights (CY2020 – CY2025 & H1 CY2026) 16 65 88 132 160 200 217 150 2020 2021 2022 2023 2024 2025 H1 2026 12 17 28 36 47 50 39 18.6% 18.8% 21.2% 22.5% 23.5% 23.3% 25.8% 0% 5% 10% 15% 20% 25% 30% - 10.00 20.00 30.00 40.00 50.00 60.00 2020 2021 2022 2023 2024 2025 H1 2026 EBITDA EBITDA Margins (%) 36 42 52 71 167 197 220 0.8 0.7 0.7 0.7 0.0 0.0 0.0 0.0 1.0 2.0 3.0 4.0 5.0 - 50.00 100.00 150.00 200.00 250.00 2020 2021 2022 2023 2024 2025 H1 2026 Net Worth Net D/E Rs. bn Rs. bnRs. bn REVENUE CAGR (2020-25) – 27.4% EBITDA CAGR (2020-25) – 33.3% NET WORTH CAGR (2020-25) – 40.6% 4 7 16 21 26 31 24 5.5% 8.5% 11.8% 13.1% 13.2% 14.1% 16.0% 0.0% 5.0% 10.0% 15.0% 20.0% - 10.00 20.00 30.00 40.00 2020 2021 2022 2023 2024 2025 H1 2026 PAT PAT Margins Rs. bn PAT CAGR (2020-25) – 53.7%
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300+ Water bodies (ponds & check dams) maintained Using only half of recharged water for manufacturing 1.89 2021 2022 2023 2024 2030 Target 1.70 1.57* 1.56* 1.40 Water consumed Per liter of beverage produced Process Improvements150+ Increase ground water level Reduce water usage (WUR)2x WRR SUSTAINABILITY – Being Water Positive (CDP water rating: A-) -21% till 2025 17 * 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. 2025 1.50
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Increase Renewable Energy Increase Plastic Waste Recycle 2021 2022 2023 2024 2025 Solar (Rooftop + Captive Power Solution) & Windmill RE Mix % & kWh million units 79 (16%)58 (13%)21 (6%)18 (7%) POSITIVE CLIMATE ACTIONS 2,000+ EV in trade for last mile 500K+ Plantations (since 2020) Efficient Visi Coolers – R290 (all new coolers starting 2023) 30% by 2030 SUSTAINABILITY – Reducing Carbon Footprint & Circular Economy 18 Net Zero by 2050 2021 2022 2023 2024 2025 70% 80% 86% 88% 100% Ahead of EPR Regulations Pepsi Zero Sugar & Sting energy come in rPET packaging ~22,000 MT used in 2025 50% rPET mix in packaging by 2030 INDORAMA JV 100% 108 (21%) rPET PACKAGING CDP Climate rating: A- CDP Supplier Engagement Assessment rating A
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Conference Call Details 19 Varun Beverages Limited Q2 & H1 CY2026 Earnings Conference Call Time • T uesday, July 28, 2026 at 2:30 PM IST Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 International T oll Free Number • Hong Kong: 800 964 448 • Singapore: 800 101 2045 • UK: 0 808 101 1573 • USA: 1 866 746 2133
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About Us Varun Beverages Limited (“VBL” or the “Company”) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Zero, Mountain Dew, Sting, Adrenaline Rush, Seven-Up, Mirinda, Nimbooz Jeera Soda and Evervess. PepsiCo NCB brands produced and sold by the Company include Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina. VBL has been associated with PepsiCo since the 1990s and have over three decades consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the distribution network. As on date, VBL has been granted franchises for various PepsiCo products across 26 States and 6 Union Territories in India. India is the largest market and contributed ~67% of revenues from operations (net) in Fiscal 2025. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC and distribution rights for Namibia, Botswana, Mozambique and Madagascar. 20 For more information about us, please visit www.varunbeverages.com or contact: Raj Gandhi / Deepak Dabas / Manjit Singh Chadha Anoop Poojari / Mitesh Jain Varun Beverages Ltd CDR India Tel: +91 124 4643100 / +91 9871100000 / +91 9810779979 Tel: +91 9833090434 / +91 9619444691 E-mail: raj.gandhi@rjcorp.in E-mail: anoop@cdr-india.com deepak.dabas@rjcorp.in mitesh@cdr-india.com manjit.chadha@rjcorp.in
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Thank You!