India’s beverage business is present process a major transformation, with Reliance-backed Campa Cola re-emerging as a formidable participant within the carbonated drinks phase. The aggressive panorama, as soon as dominated virtually totally by Coca-Cola and PepsiCo, is seeing heightened exercise as Reliance Shopper Merchandise Ltd (RCPL) pushes aggressively into this market with its pricing technique, product improvements, and vast distribution enlargement.
Origin & Attain of Campa Cola
Campa Cola was initially launched by New Delhi-based Pure Drinks Group in 1977 however misplaced its presence within the early Nineties when international giants Coca-Cola and Pepsi consolidated their dominance. After its acquisition by Reliance Shopper Merchandise Ltd(RCPL) in 2022 for Rs. 22 crore, the model has made a powerful comeback.
As of March 2025, RCPL highlighted product innovation and strategic acquisitions, together with Tagz Meals, and the launch of a number of new variants below Campa, Independence, Alan’s, Enzo, and Ravalgaon.
In a improvement introduced on 18th August, 2025, RCPL has forayed into the fast-growing wholesome purposeful beverage area by buying a majority stake in a three way partnership with Naturedge Drinks Non-public Restricted.
By way of this transfer, the corporate goals to introduce a variety of herbal-natural drinks, additional strengthening its presence as a Whole Beverage Firm and tapping into the rising demand for more healthy, pure options.
By June 2025, the corporate achieved double-digit market share in a number of key areas, supported by a sturdy provide chain and pan-India enlargement. Reliance has additionally set a long-term imaginative and prescient of creating RCPL certainly one of India’s largest FMCG corporations by 2030.
Origin & Attain of Varun Drinks
Varun Drinks (VBL), included in 1995, is PepsiCo’s key bottling accomplice in India and throughout a number of worldwide territories. The corporate manufactures, bottles, and distributes standard PepsiCo carbonated drinks resembling Pepsi, Mountain Dew, Sting, Seven-Up, and Mirinda, together with non-carbonated drinks together with Tropicana juices, Aquafina water, and Gatorade.
VBL holds franchise rights for PepsiCo merchandise throughout 27 states and seven union territories in India, overlaying almost 90 % of PepsiCo India’s beverage gross sales. Internationally, it operates in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.
India stays its largest market, contributing round 80 % of revenues. The corporate can also be increasing its scope, adopted by getting into into snacks manufacturing with Kurkure Puffcorn in 2022, Distribution & Gross sales of Lays, Doritos and Cheetos in Morocco and buying PepsiCo’s South African bottler Bevco in 2023 for Rs. 1,320 crore.
Varun Drinks has secured an unique PepsiCo snacks franchise to fabricate, distribute, and market the “Simba Munchiez” model in Zimbabwe and Zambia. The corporate will make investments about USD 7 million (Rs. 60 crore) to arrange manufacturing vegetation with a yearly capability of 5,000 metric tonnes every. Operations are anticipated to begin in Zimbabwe from October 1, 2025, and in Zambia from April 1, 2026.
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Assessing Campa’s Menace to Varun Drinks
The central query now could be whether or not Campa poses an actual menace to Varun Drinks. In response to a report from JM Monetary dated sixteenth March, 2025, the Indian beverage market of roughly 2.4 billion circumstances is a duopoly with Coca-Cola holding 50–55 % share and PepsiCo about 30–35 %, whereas regional manufacturers account for the remaining 15 %.
Campa’s re-launch in March 2023 has began to disrupt this construction. RIL, in its Q3FY25 replace, indicated that Campa was on monitor to cross Rs. 10 billion in gross sales for FY25, translating into 60–70 million circumstances and a low-single-digit market share.
Whereas this determine is small in comparison with PepsiCo’s entrenched place, Campa’s aggressive pricing—Rs. 10 for a 200 ml PET bottle and Rs. 20 for a 500 ml bottle, priced at a 30–40 % low cost to Coke and Pepsi has enabled it to shortly seize consideration amongst price-sensitive, mass-end customers.
Campa’s technique has been to concentrate on states resembling Tamil Nadu, Andhra Pradesh, Telangana, Uttar Pradesh, and West Bengal, the place regional gamers are already robust, and client loyalty is low.
Trade checks recommend Campa is discovering traction in smaller SKUs consumed exterior the house, although bigger SKUs, sometimes most popular for residence consumption, stay dominated by Coca-Cola and Pepsi.
The potential disruption, nonetheless, could also be larger in adjoining segments like packaged water and soda, the place model loyalty is weaker and worth performs an even bigger position. Past India, RCPL has additionally launched Campa in Sri Lanka in partnership with Ceylon Chilly Shops, signaling its ambitions for abroad enlargement.
Conclusion
For Varun Drinks, which depends closely on PepsiCo’s entrenched portfolio, Campa’s entry represents a reputable problem in particular client pockets. Nevertheless, given VBL’s long-standing relationship with PepsiCo, nationwide attain, diversified beverage portfolio, and worldwide presence, the instant menace seems contained.
Campa is definitely altering client dynamics on the lower-price finish of the market, however PepsiCo, by way of VBL, continues to dominate in bigger packs, premium classes, and home-consumption segments.
In abstract, Campa shouldn’t be but a direct substitute for PepsiCo’s established manufacturers distributed by Varun Drinks, however its aggressive enlargement and aggressive pricing technique make it a disruptive power within the Indian beverage business.
Over time, if Reliance continues its pan-India rollout and product diversification, Campa may pose a stronger problem to VBL, notably within the mass client phase the place affordability dictates shopping for choices.
Written By Manan Gangwar
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