Valencia Beverages and Superwater Pvt. Ltd (VSBW), a wholly owned subsidiary of Valencia Nutrition Ltd, has navigated the disruptions arising from the Strait of Hormuz crisis through a mix of supply chain preparedness, operational agility and strategic partnerships.
As part of its business expansion, VSBW entered into a definitive agreement with Virchow Laboratories Ltd for manufacturing eight juice SKUs, including mango, guava, apple, pomegranate, coconut, litchi, banana and mixed fruit variants.
The agreement secures a committed monthly production volume equivalent to around 15% of the installed capacity at Valencia’s Unit II facility in Hyderabad.
Strategic sourcing and inventory buffer
Amid global supply uncertainties, the company pre-emptively secured a three-month inventory of critical packaging materials such as preforms, caps, labels and shrink wrap ahead of the crisis onset in late February 2026.
It also capitalised on falling domestic fruit pulp prices, caused by export disruptions, to procure key inputs including mango, apple and pineapple pulp at competitive rates. This has ensured raw material availability for the entire year, mitigating risks associated with import dependencies.
Operational resilience and energy shift
In response to LPG shortages triggered by the crisis, the company swiftly transitioned its boilers from LPG to diesel within two days, creating a dual-fuel system to maintain uninterrupted production.
The Unit II facility, equipped with advanced ‘Hot Fill’ technology and 400 BPM capacity lines, continues to operate at scale, supported by in-house ERP and MIS systems for efficient inventory management using FIFO methodology.
Partnerships and capacity utilisation
Beyond the Virchow agreement, VSBW has expanded its co-packing operations with four additional brands, enabling better utilisation of plant capacity, including second-shift production.
The company is also exploring export opportunities in the GCC region, with product samples already approved and commercial orders under discussion.
Workforce adaptability
Despite operational challenges, including a temporary labour disruption in early April, the company-maintained continuity by deploying three engineers Jash Raval (Blowing), Durgaprasad Patil (Pasteurization), and Narsing Lomate (Boiler) from its Mumbai-based Valencia Engineering Group to manage critical processes.
This integrated approach to engineering support has reinforced operational stability and highlighted the importance of internal capabilities in managing unforeseen disruptions.
Overall, the company’s response underscores a combination of forward planning, cost optimisation and strategic execution, enabling it to sustain growth momentum even amid global supply chain volatility.
VBSW said Hormuz crisis was checkmated by a young team nick named Valencia BSW led by John Michael & Jay Shah.