On Monday, Varun Beverages-the bottler of Pepsi India-announced its fourth quarter profit below analysts' estimates due to rising raw material costs which outweighed volume growth from its expansion into Africa.

Shares of one of PepsiCo's world's largest franchises fell by around 1.8%.

According to the data by LSEG, net profit for the year ended 31 December grew by more than 40% on year to stand at Rs 185 crore ($21.12 million). However, this fell short of analysts' average estimate of Rs 211 crore.

The revenue from operations of Varun Beverages surged since it grew almost 39.8% to reach almost Rs 3,818 crore. However, the expenses surged with the increase owing to the rise in raw materials like sugar, flavorings, glass bottles and packaging and even upon the increased value-added tax by about 41.3% at the end of last segment year.

Varun Beverages, bottled and distributed the drinks under the brands Pepsi, Mirinda, and Tropicana, was expanding its footprint into many African countries, including South Africa, Ghana, and Tanzania, buoyed by the demand outlook.

"Consolidated volumes are 23.2% better off, driven primarily by extensions into new territories," said Chairman Ravi Jaipuria in an investor presentation.

11.4% domestic volume growth was also reported by the Gurugram-based company for the quarter.