Varun Beverages Ltd (VBL) has announced an investment of Rs 412.80 crore in its South African subsidiary, The Beverage Company Proprietary Limited (Bevco). The development aligns with VBL’s strategy to strengthen its presence in international markets while bolstering its operations in India and retail globally.
Bevco is engaged in manufacturing and distributing PepsiCo’s licensed products and its own non-alcoholic beverages in South Africa. It also holds franchise rights from PepsiCo for South Africa, Lesotho, and Eswatini.
As per a regulatory filing, VBL disclosed the subscription of 19.84 lakh ordinary shares of Bevco, resulting in an incremental shareholding of 2.42 percent. The investment is aimed at enabling Bevco to repay its existing debt and support future business growth.
“Bevco has allotted 19.84 lakh ordinary shares to VBL, and this fresh investment will help Bevco to repay its existing debt and strengthen its balance sheet for business growth,” the company stated.
The move follows VBL’s acquisition of Bevco in December 2023 at an enterprise value of Rs 1,320 crore. The acquisition and subsequent investment are part of VBL’s effort to expand its geographical footprint and tap into the growing African beverage market.
Promoted by the Jaipuria family, VBL accounts for 90 percent of PepsiCo’s beverage sales volume in India, solidifying its leading position in the retail beverage segment.