Ravi Jaipuria Succession Plan: Ravi Jaipuria has announced a formal strategic succession plan for the $3-billion RJ Corp, owner of Varun Beverages, and Devyani International (DIL). Per the succession plan, his son Varun Jaipuria will oversee the food and beverages division whereas Devyani Jaipuria would head the health and education sectors, said a report by Economic Times.
“Succession planning at RJ Corp has been established that includes a roadmap for Varun and Devyani to take on strategic leadership roles,” Ravi Jaipuria told ET. He said, “Daily operations will continue to be run by professionals,” thereby giving enough indication of the long-term commitment of the company amidst the ongoing change to professional management, as quoted by ET.
RJ Corp Succession Plan: Who Gets What?
Varun Jaipuria, 36, will lead Varun Beverages Limited and Devyani International Limited (DIL), which are part of the RJ Corp portfolio and named after Ravi Jaipuria’s kids. Varun Beverages is the second largest bottler of PepsiCo across the globe after the US, and Devyani International manages KFC, Pizza Hut, and Costa Coffee outlets in India.
Devyani Jaipuria, 39, will head the group’s foray into healthcare, which includes the high-end premium chain Cocoon for maternity hospitals and stem cell banking, among other things. The group also encompasses partnerships with eminent institutions like Delhi Public Schools in Gurgaon and Jaipur and many other educational institutions, the report stated.
Ravi Jaipuria, meanwhile, will continue as the chairman of RJ Corp. He will continue to supervise overall growth, policies, expansion, and diversification efforts. “This framework is designed to ensure continuity and stability of the company while infusing fresh perspectives into new leadership,” said Ravi Jaipuria, maintaining that this plan would help his children focus on the larger strategic initiatives and the corporation’s long-term vision.
“Central to our strategy is the role played by our professional team managing the daily operational aspects. In fact, the role of professional management, combined with strategic leadership, preeminently drives the company ahead to ensure that it remains on course for agility and innovation central to operations at RJ Corp,” Ravi Jaipuria told ET.
Varun Beverages’ balance sheet
Varun Beverages reported a 76 per cent year-on-year (YoY) rise in profit after tax at Rs 143.76 crore for the December quarter, driven by growth in revenue from operations and improved profit margins. It had posted revenue from operations at Rs 2,214.24 crore, up 20.5 per cent from Rs 2,214.24 crore in the same quarter last year, driven by volume growth in both India and International markets. Ebitda for the quarter climbed 36 per cent YoY to Rs 418.29 crore,
Devyani International’s balance sheet
Devyani International reported its December quarter earnings for the financial year 2023-24 with profit at Rs 9.62 crore, down 86.6 per cent in comparison to Rs 71.67 crore during the corresponding quarter of the previous year. It posted revenue from operations at Rs 843.13 crore, up 6.6 per cent as against Rs 790.60 crore during the third quarter of FY23. The company EBITDA stood at Rs 146 crore, down 17 per cent on-year.
