Ravi Jaipuria

PEPSICO’S largest franchise bottler, Varun Beverages, has set its sights on expanding its dairy business into Zimbabwe following the recent commissioning of a $40 million green field production facility.
RJ Corporation chairman Ravi Jaipuria told The Financial Gazette that the business ― which will engage outgrower small-scale farmers to supply the processing plant with raw materials ― would be established in the next three years.
“We have Varun Dairy, which focuses on engagement with small-scale farmers… Yes, we do have plans to set up a dairy plant in Zimbabwe, but it is not immediate. Maybe in the next three or so years when we are done with the French fry business. The aim is to tap and access a largely untapped market,” Jaipuria said after commissioning the group’s local PepsiCo plant in the capital.
In 2013, Varun set up a $15 million dairy processing plant in Zambia in partnership with Beverages Zambia Limited, creating 250 jobs.
A new dairy player will provide competition to established dairy firms such as Zimbabwe Stock Exchange-listed Dairibord, Dendairy and Alpha Omega Dairy.
Already, Varun’s PepsiCo plant in Zimbabwe has stabilised prices of fizzy drinks.
Meanwhile, Jaipuria said Varun would set up an $8 million potato chips business in Zimbabwe next year as the group expands its local footprint.
“It will be about $7 to $8 million… We are looking to start with one tonne per hour, that is one tonne of French fries, and it will basically supply restaurants, supermarkets and fast food shops,” Jaipuria told The Financial Gazette last week after commissioning the PepsiCo plant.
Highlighting that the group would this year expand the $40 million Pepsi Bottling Plant, the RJ Corp boss said the fries project would commence next year.
“This year is for expansion of the bottling plant and other developments there. The fries investment will only start next year,” the Indian billionaire said.
The Harare bottling plant ― equipped with a 400-bottle-per-minute production line ― is expected to spur Varun Beverages into the regional market.
On completion, the plant is projected to create at least 400 jobs and another 2 600 downstream.

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