Synopsis: A century-old Japanese dairy drink is heading to India, backed by one of the country’s most powerful beverage distribution machines.
India’s non-alcoholic beverage market has grown 2.3 times in volume over the past decade, and global players are racing to claim their share. The latest entry comes from Japan, through a franchise deal with a company that has already proven it knows how to scale brands across the subcontinent and beyond.
Japan’s Iconic Drink Lands in India
Varun Beverages Limited (VBL), India’s most dominant PepsiCo bottler, has signed a business alliance agreement with Asahi Group Holdings Ltd. of Japan to introduce the CALPIS brand into India.
Under the agreement, VBL will handle manufacturing, distribution, and sales of CALPIS in India, while Asahi Group Holdings will be responsible for product development and technical support. Asahi’s local subsidiary will manage marketing and brand management. The product is expected to hit shelves in the second half of 2026 or thereafter, starting with two flavours: Original and Mango.
CALPIS is no small name. First created in 1919, it is Japan’s pioneering fermented milk-based lactic acid drink, known for its refreshingly sweet and tangy taste. It has been enjoyed for more than a century and is currently available in over 10 countries and regions, primarily across Asia and North America.
Why VBL Makes Sense as a Partner
VBL’s distribution muscle makes it one of the most logical choices for any global brand looking to enter India. The company is the second largest franchisee of PepsiCo outside the United States, with 53 production facilities across India and international territories. In India alone, it operates 38 plants and covers 27 states and six union territories.
The company posted consolidated net revenue of Rs. 6,574 crore in Q1 CY2026, up 18.1% year-on-year, while sales volumes grew 16.3% to 363.4 million cases. EBITDA rose 21% to Rs. 1,529 crore, with margins improving by 55 basis points to 23.3%. Profit after tax climbed 20.1% to Rs. 879 crore in the same quarter.
Over the five-year period from CY2020 to CY2025, VBL’s revenue has grown at a CAGR of 27.4%, EBITDA at 33.3%, and PAT at a striking 53.7%. The stock has delivered approximately 1,984% returns since its listing in 2016, reflecting a business that has consistently compounded at scale.
A Category VBL Is Committed to Building
The CALPIS tie-up is not VBL’s first step into dairy-based beverages. The company already markets dairy-based ambient drinks under the CreamBell trademark licence. This new alliance with Asahi adds a globally recognised, heritage brand to that effort, one that brings both product credibility and consumer trust built over more than 100 years.
For Asahi Group, India represents its first entry into the country’s non-alcoholic, non-carbonated beverage market. With India’s population exceeding 1.4 billion and a rising health-conscious middle class, the opportunity is clear. VBL’s nationwide reach gives Asahi a ready infrastructure to tap into that demand from day one.
Varun Beverages Limited is the second largest franchisee of PepsiCo outside the United States. Part of the RJ Corp Group, VBL manufactures, distributes, and sells carbonated soft drinks, non-carbonated beverages, and packaged drinking water across India and 13 international markets. The company operates 53 production facilities and has delivered a sales volume CAGR of approximately 23.3% between 2020 and 2025.
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