Varun Beverages Makes Strategic Investment in South African Market

Varun Beverages Ltd announces a Rs 412 crore investment in its South African subsidiary, Beverage Company Proprietary (Bevco), strengthening its balance sheet and enhancing growth potential. Bevco, engaged in manufacturing and distributing PepsiCo products, will use the funds to repay debts and increase market presence in Africa.

Varun Beverages Ltd (VBL), a prominent bottler for PepsiCo, revealed plans to inject Rs 412 crore into its South African subsidiary, Beverage Company Proprietary (Bevco). This strategic move aims to bolster Bevco's financial standing and facilitate further growth in a competitive market.

Bevco, a key player in the manufacture and distribution of PepsiCo products in South Africa, also holds franchise rights in Lesotho and Eswatini. The investment will increase VBL's stake by 2.42 percent, signifying their commitment to expand their geographical footprint in Africa.

The Rs 412.80 crore investment, gained by subscribing to Ordinary Shares in Bevco, reflects VBL's strategic drive. This financial support will aid Bevco in settling debts and strengthening its balance sheet, paving the way for accelerated business development within the region.

(With inputs from agencies.)