Zimpapers Logo

Martin Kadzere Senior Business Reporter
VARUN Beverages Zimbabwe has started the construction of its $30 million Pepsi bottling plant in Harare, director and chief executive Shankar Krishnan said yesterday.

In an update on the project, Mr Krishnan, who is overseeing the Zimbabwean operation said the machinery and equipment have been ordered and all resources required for the completion of the plant were in place. The plant is expected to be completed by Q2 17.

“Based on our current networks, the plant is poised to be up and running by Q2 2017.”Mr Shankar said while the priority was to launch its Pepsi brands, the company would look at juice based beverages from PepsiCo’s portfolio to augment its product offering.

“We would possibly look at juice based beverages in future. The decision to look at other sectors would be a factor of what our board decides as we move forward,” Shankar said.

Varun has invested a considerable amount in chilling units in line with its “Cold is Sold” business motto.“Yes we have plans to invest in chilling equipment because I believe in the concept – COLD IS SOLD. Considering this, investment in chilling units will be our priority in Zimbabwe,” Mr Shankar said.

“To grow our business we have a very simple formula – ensure the consumer gets a great product offering at the best price and packs; the product should be available at its reach and convenience; there should be excitement around the products for consumers to have a reason to get associated with the brands and get the best talent to represent the brand. Therefore, focusing on quality product, attractive price, good distribution network, effective hiring of manpower and intense marketing initiatives are required to ensure that all goes well for the business,” he added.

He said the group was bullish about the local market saying “this is the right time to enter the country.”“Zimbabwe has huge potential for the beverage market and that is the reason we have decided to invest in this country. Yes there are challenges currently but we are confident these are short-term,” Mr Shankar said.

“To give you a different perspective, when we entered the Zambian market, it had been stagnant for years. After our entry in late 2010, the industry started to grow and today it has doubled in volumes. “We expect similar results in Zimbabwe.”

This, Shankar said, had brought in additional revenues to the Government apart from creating new job opportunities and bringing additional business to ancillary units like sugar industry, packaging industry, transport and advertising. He said the entry of a new player would lead to price stability, which would eventually benefit the consumers.