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Varun opens new production line

by Staff reporter
10 Jan 2021 at 20:58hrs | Views
VARUN Beverages Zimbabwe Private Limited (VBZPL) has commissioned a new production line to ramp up production of its Aquaclear bottled mineral water.

VBZPL is a subsidiary of the Indian headquartered Varun Beverages Limited, which manufactures, bottles and distributes beverages.

The holding company is the second-largest bottling company of the American multinational food, snack and beverage firm, PepsiCo.

"Varun Beverages Zimbabwe Private Limited has commissioned a new production line with an additional investment to ensure enough Aquaclear bottled water supplies for its consumers," VBZPL said in a statement.

The firm has recommended a retail price of $15 and $13,40 per 750ml and 500ml bottle for the bottled water, respectively.

"Aquaclear will be made available to the consumers from the house of Varun Beverages at affordable prices, with great quality," VBZPL revealed.

Added Varun Beverages Zimbabwe vice president Fungai Murahwa: "The launch of the product at affordable prices, with great quality, should allow more consumers to drink clean and pure bottled water. There are more products and innovations in the pipeline for 2021 from Varun Beverages."

The pricing of its products shows the company is aiming for increased volumes rather than increased profit margins amid depressed disposable incomes caused by wage erosion as a result of inflation.

This follows the abandonment of the multi-currency regime in June 2019, making the Zimbabwe dollar the sole legal tender.

According to the holding company's 2019 annual report, the change in currency in 2019 resulted in a foreign exchange loss on restatement of monetary assets and liabilities denominated in foreign currency for VBZPL.

This led to a net loss on foreign currency transactions of INR834,90 million (Indian rupees) translating to US$11,37 million.

Source - newsday