Ravi Jaipuria, promoter of Varun Beverages and Devyani International is now worth over $10 billion
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
According to Bloomberg Billionaires Index, Ravi Jaipuria is currently placed between DLFās KP Singh and Nusli Wadia of Britannia Industries.
A stellar rally in the stocks of companies named after his children has taken billionaire promoter Ravi Jaipuria’s net worth past $10 billion in 2023. The fortunes of India’s “cola king” have grown by over $2 billion so far this year, led by a rally in shares of Varun Beverages and Devyani International. The surge has taken Jaipuria to the 15th spot in the list of India’s richest individuals.
According to Bloomberg Billionaires Index, He is currently placed between DLFās KP Singh and Nusli Wadia of Britannia Industries. While the owner of countryās largest listed real estate company has a networth of $10.9 billion as of Thursday, the fortune of Nusli Wadia stands at $8.5 billion.
The rally in shares of both Varun Beverages and Devyani International is backed by strong fundamentals. For instance, the net profit of Varun Beverages increased at a compounded rate of 48 percent between financial year 2018-2022 on the back of a 26 percent rise in net revenue. Similarly, Devyani International turned profitable in financial year 2022 after three straight years of losses through financial year 2021.
The top-line of the company surged by 25.5 percent over the last three years to Rs 2,998 crore in financial year 2023, with an EBITDA Margin of close to 22 percent, Bloomberg data showed.
Interestingly, shares of Varun Beverages have been consistent outperformers on the Nifty FMCG Index. The stock has never yielded a negative yearly return ever since its listing in 2016. The average return between 2017 and 2023 stands at 54.2 percent.
In addition to share price returns, Varun Beverages has also paid frequent dividends to its shareholders and also announced three 1:2 bonus issues in 2019, 2021 and 2022 respectively.
While the promoter entity RJ Corp holds 27.2 percent in Varun Beverages as of June 2023, Ravi Jaipuria owns roughly 18 percent of the company. Moreover, his son Varun Jaipuria has another 16.04 percent ownership in the company whereas daughter Devyani Jaipuria has 2.43 percent stake in Varun Beverages.
Incidentally, Devyani International made its stock market debut exactly two years ago on August 16, 2021. The stock, which had an issue price of Rs 90 per share, has more than doubled in two years since listing to make a recent 52-week high of Rs 215.
Promoter Jaipuria owns a 63 percent stake in Devyani International, the largest franchisee of Yum Brands in India, his holding in Global Health stood at six percent as of April, 2023.
Ravi Jaipuria, presides over RJ Corp. which is into varied sectors such as food & beverage, healthcare and education. He is also referred to as Indiaās ācola king,ā who runs the second-largest international franchises of PepsiCo outside the US.
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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow