According to a report by the Economic Times (ET), Ravi Jaipuria has purportedly established a succession strategy within his $3-billion RJ Corp. The conglomerate owns Varun Beverages, PepsiCo’s second-largest bottler worldwide, and Devyani International (DIL), which operates KFC, Pizza Hut, and Costa Coffee outlets in India.
As per the report, Jaipuria’s son, Varun, will take charge of the food and beverage segment, while his daughter, Devyani, will lead the healthcare and education sectors.
“Succession planning at RJ Corp has been established, including a roadmap for Varun and Devyani to take on strategic leadership roles,” ET quoted Jaipuria. He further added that day-to-day operations will remain in the hands of professionals.
Who gets what in RJ Corp succession?
Varun Beverages (VBL) and Devyani International are publicly traded entities, named after the founder’s children.
As per the report, Devyani will be responsible for managing the healthcare portfolio, which includes Cocoon maternity hospitals and stem cell banking, along with educational institutions like Delhi Public Schools in Gurgaon and Jaipur.
The founder, Jaipuria, will maintain his role as chairman of RJ Corp, overseeing overall growth, policies, expansion, and diversification initiatives, as reported by ET.
“This framework is designed to ensure the company’s continuity and stability while infusing fresh perspectives into new leadership,” Jaipuria told the Business Daily.
“Central to our strategy is the role played by our professional team, which manages the daily operational aspects. This blend of professional management and strategic leadership is key to driving RJ Corp forward, ensuring agility and innovation remain at the core of our operations,” he added.
Also read | Paytm discontinues inter-company agreements with Paytm Payments Bank
DIL and Varun Beverages balance sheet
In the December quarter, Devyani International (DIL) recorded a consolidated profit of Rs 9.6 crore, marking an 87 percent decline from the previous year.
Meanwhile, Varun Beverages reported a consolidated net profit of Rs 132 crore for the same period, representing a significant growth of 77 percent.
On April 22, Varun Beverages’ stock closed at Rs 1,433 on the National Stock Exchange, reflecting a 2.64 percent increase. Devyani International experienced a gain of 1.24 percent, closing the day at Rs 163.05.
RJ Corp global operations
In terms of global operations, Varun has gradually assumed a more active role within the business, overseeing various regions and functions. Varun Beverages Limited (VBL) operates across nine countries, with a network of 45 manufacturing facilities responsible for bottling and distributing PepsiCo’s beverage products. These include popular brands such as Pepsi, 7UP, Mirinda, Mountain Dew, Sting, Tropicana, and Aquafina, reaching 3.8 million outlets worldwide.
On the other hand, Devyani International Limited (DIL) manages a range of franchises across India, Nepal, Nigeria, and Thailand. These franchises encompass well-known brands like KFC, Pizza Hut, Costa Coffee, Vaango, and Food Street. Additionally, DIL oversees Cryoviva Biotech Pvt, established by RJ Corp in 2006, which offers umbilical cord stem cell services on a global scale. Cryoviva operates in various countries, including Thailand, Singapore, the Middle East, Nepal, Vietnam, and East Africa.
In December of the previous year, RJ Corp announced two significant global transactions: VBL’s acquisition of South Africa’s Beverage Co (BevCo) for Rs 1,320 crore, and DIL’s expansion into Thailand through the acquisition of 274 KFC outlets.
For more latest business-related updates, click here.
