Varun Beverages Ltd (VBL), one of the leading bottlers of PepsiCo products, has announced an investment of Rs. 412 crore in its South African subsidiary, Beverage Company Proprietary Limited (Bevco). This investment involves subscribing to 19.84 lakh ordinary shares, increasing VBL’s share capital in Bevco by 2.42%.
Bevco, which holds franchise rights for PepsiCo in South Africa, Lesotho, and Eswatini, manufactures and distributes both licensed PepsiCo products and its own non-alcoholic beverages. The fresh capital infusion will assist Bevco in repaying its existing debt and strengthening its balance sheet to drive future growth.
This strategic move follows VBL’s December 2023 acquisition of Bevco and its subsidiaries at an enterprise value of Rs. 1,320 crore. The acquisition marked a significant step in VBL’s efforts to expand its geographical footprint in the African market.
Promoted by the Jaipuria family, VBL currently accounts for 90% of PepsiCo’s beverage sales volume in India. With this investment, VBL aims to solidify its presence in international markets while fostering sustainable growth for its South African operations.
Shares of Varun Beverages Ltd closed at Rs. 648.40 on the BSE, down 0.33% from the previous day’s close.