Varun Zim invests US$90m, plots rural expansion

Business Reporter
GIANT beverages producer, Varun Beverages Zimbabwe, which has pumped in about US$90 million in Zimbabwe so far, plans to expand investment footprint with focus on setting up outlets in rural areas.

Varun Zimbabwe is part of the global Varun Beverage Limited group, whose business has been registering fastest growth since starting operations in Zimbabwe in 2018.

From a single production line that was inaugurated by President Emmerson Mnangagwa early 2018, the company has increased these into nine, including backward integration.

“Varun beverage is an example of the ‘Zimbabwe is open for investment’ as the company has already invested some 85-90 million USD in Zimbabwe and have further plans to invest,” said the company in a press release.

“Varun beverages has plans to set up outlets in rural Zimbabwe with solar panel fixed on it. These outlets will be distributed free of cost to the poor families to create employment in rural Zimbabwe.

“This will be done besides distribution of additional 1500 push carts by Pepsi Varun Beverages in the year 2022.”

Varun chief executive officer, Mr Vijay Bahl, has said the soon-to be launched project will help develop and grow the retailer base in rural Zimbabwe.

Buoyed by the positive investment climate, the company has already hinted on plans to make Zimbabwe a production hub for the entire southern Africa.

“We are grateful to the people of Zimbabwe for the love they have shown towards our product. We are planning to diversify into many other areas of FMCG (fast-moving consumer goods) business,” said the company.

During the recent Zimbabwe-Rwanda investment and trade conference held in Harare, Mr Bahl stated that his company has aligned its operations with President Mnangagwa’s Vision 2030, which is anchored on creating an upper middle-income economy.

When asked how Varun Beverages will be contributing to this vision, Mr Bahl said the company will increase its output and contribute more to job creation.

“We have tried to change the retail landscape by ensuring beautiful looking push-carts, distribution of free ice and are further expanding these initiatives in our own small humble manner, delivery of beverages at the doorstep of the retailers and customers to ensure growth of the beverage industry by making products available at arm’s length besides trying to provide the world class products at affordable prices,” he said.

“The additional employment created by Varun Beverages and competition has brought benefits to the consumers of Zimbabwe. The monopolies are not good for any economy as the monopolies slow down innovation, bring inflationary trends and do not give choice to the consumers. The healthy competition is good for Zimbabwe.”

Mr Bahl noted that their ‘Aquaclear’ bottled water, for instance, was one of the best quality products made available to the consumer at an affordable price by ensuring benefits of higher volume and scale are passed to the consumers.

“The product is made available at the affordable prices,” said Mr Bahl, adding that the middle-class economy and growth of Zimbabwe lies in the growth and development of rural Zimbabwe.