RJ Corp Succession Plan: Daughter Devyani to lead health and education, Son Varun to get food and drink
A formal strategic succession plan for the $3 billion RJ Corp, which owns Devyani International (DIL) and Varun Beverages, has been revealed by Ravi Jaipuria. As per the succession plan, Devyani Jaipuria would lead the health and education sectors, while his son Varun Jaipuria will supervise the food and drink section, according to an Economic Times story.
“A road map for Varun and Devyani to assume strategic leadership roles has been established as part of RJ Corp’s succession planning,” Ravi Jaipuria told ET. According to ET, he said, “Daily operations will continue to be run by professionals,” which adequately demonstrates the company’s long-term commitment to professional management even as it continues to transition to it.
The RJ Corp portfolio companies Varun Beverages Limited and Devyani International Limited (DIL), named after Ravi Jaipuria’s children, will be led by 36-year-old Varun Jaipuria. After the US, Varun Beverages is the second-biggest PepsiCo bottler worldwide. Devyani International is in charge of running KFC, Pizza Hut, and Costa Coffee locations in India.
The group’s entry into the healthcare industry, which includes, among other things, the upscale, premium chain Cocoon for maternity hospitals and stem cell banking, will be led by Devyani Jaipuria, 39. According to the study, the firm has connections with several other educational institutions as well as prestigious establishments like Delhi Public Schools in Gurgaon and Jaipur.
Meanwhile, Ravi Jaipuria will stay on as RJ Corp.’s chairman. He will still be in charge of general development, strategy, growth, and diversification initiatives. Insisting that this approach will assist his children in concentrating on the most significant strategic projects and the firm’s long-term goal, Ravi Jaipuria stated, “This framework is designed to ensure continuity and stability of the company while infusing fresh perspectives into new leadership.”
“The function that our skilled staff plays in overseeing the day-to-day operational elements is fundamental to our approach. Actually, competent management plays a crucial role in propelling the business forward and ensuring that it stays on track for agility and innovation, which are essential to RJ Corp operations, according to Ravi Jaipuria, ET.
The financial sheet of Varun Beverages
For the December quarter, Varun Beverages reported a 76% YoY increase in profit after tax of Rs 143.76 crore, primarily due to higher operating revenue and increased profit margins. Due to volume increase in both the Indian and foreign markets, it reported operating revenue of Rs 2,214.24 crore, up 20.5% from Rs 2,214.24 crore in the same quarter of previous year. The quarter’s EBITDA increased 36% year over year to Rs 418.29 crore.
The financial sheet of Devyani International
Devyani International announced its December quarter profits for the fiscal year 2023–24. The company made Rs 9.62 crore in profit, which is 86.6 percent less than what it made in the same quarter the previous year—Rs 71.67 crore. It reported operating revenue of Rs 843.13 crore for the third quarter of FY23, an increase of 6.6% above Rs 790.60 crore. EBITDA for the firm was Rs 146 crore, a 17% decrease from the previous year.
