Shares of Varun Beverages Ltd surged 1.3% to hit an intraday high of ₹538.70 on Friday, marking a significant jump from the previous day's performance. According to latest market data, the stock was trading at ₹533 per share as of 11:52 AM, representing a 0.27% increase. The stock has demonstrated strong momentum with gains of 2% in the past week and more than 3% over the month, while maintaining an 8% year-to-date climb. The stock had previously hit a 52-week high of ₹555.80 on June 17, 2026, and touched a year's low of ₹381 on March 23, 2026. With a total market capitalisation of ₹1.8 lakh crore as of June 19, 2026, according to NSE data, the stock continues to benefit from positive investor sentiment around the strategic partnership.
The company announced a business alliance with Japan's Asahi Group Holdings to introduce the CALPIS beverage brand in India through a franchise agreement. Under the agreement, Asahi Group will introduce its iconic fermented milk-based beverage brand in the Indian market. The product is expected to be launched in the second half of 2026 or thereafter in two flavours-Original and Mango. As reported by Moneycontrol, this partnership marks Asahi Group's first entry into India's non-alcoholic, non-carbonated beverage segment, targeting the growing demand for functional beverages in the Indian market. According to CLSA, the partnership adds a differentiated fermented dairy-based ready-to-drink (RTD) offering, which is akin to a premium lassi sub-segment, to Varun Beverages' existing portfolio. The partnership is officially registered under the name CALPIS, which is a registered trademark of Asahi Soft Drinks Co., Ltd.
Under the franchise agreement, Asahi Group will be responsible for product development, technical support, and providing technical support for production of CALPIS-branded beverages, while its local subsidiary will oversee marketing and brand management. Varun Beverages will handle manufacturing, distribution and sales of the products in India. According to CLSA, the partnership underscores Varun Beverages' ability to leverage its strong manufacturing base and extensive distribution network, including its existing cold-chain infrastructure. Varun Beverages, PepsiCo's second-largest franchisee outside the United States, operates 53 production facilities across India and overseas, providing the necessary infrastructure for the partnership. Commenting on the development, Atsushi Katsuki, President and Group CEO at Asahi Group Holdings, stated that the company is delighted to introduce the CALPIS brand, which has been enjoyed in Japan for more than a century, to Indian consumers, describing India as "one of the world's most dynamic and promising beverage markets." He emphasized confidence that by combining the strengths of both companies, they can create new value in the Indian market.
The partnership announcement comes as Varun Beverages reported strong financial results for Q1 CY26. The company reported a 20.08% jump in consolidated net profit to ₹872.35 crore in Q1 CY26 compared with ₹726.49 crore posted in Q1 CY25. Revenue from operations (excluding excise duty) surged 18.09% YoY to ₹6,574.19 crore in Q1 CY26, as reported by Business Standard. The company's global footprint spans across 26 states and 6 union territories in India, with international operations covering Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC, and distribution rights for Namibia, Botswana, Mozambique and Madagascar. Varun Beverages has a total market capitalisation of ₹1.8 lakh crore as of June 19, 2026, according to NSE data, reflecting strong investor confidence in the company's growth prospects.
The partnership targets India's expanding non-alcoholic beverage market, which has grown approximately 2.3 times in volume over the past decade through 2025, according to GlobalData. India's non-alcoholic beverage market is driven by factors such as population growth, an expanding wealthy middle-class, and rising health-consciousness among consumers. With a population exceeding 1.4 billion, India presents a promising opportunity for beverage companies. Asahi Group President and CEO Atsushi Katsuki described India as "one of the world's most dynamic and promising beverage markets," while Varun Jaipuria, Executive Vice Chairman of Varun Beverages, emphasized that CALPIS is a brand with more than a century of heritage and consumer trust, with significant long-term potential in the category. The alliance enables Asahi Group to focus on product development and marketing in India, while Varun Beverages adds a product with unique value to its portfolio, creating a partnership expected to deliver mutual benefits. Varun Jaipuria added that by combining Asahi's global expertise with Varun Beverages' manufacturing strength and extensive distribution network, they look forward to establishing CALPIS as one of the leading brands for Indian consumers.
