Varun Beverages Acquires South Africa's Bevco for Rs 1,320 Crore, Expands Presence in African Market

20 Dec 2023 , 10:57 AM

Varun Beverages Ltd (VBL) acquires South Africa-based Beverage Company (Bevco) and its wholly-owned subsidiaries at an enterprise value of Rs 1,320 crore.

Bevco holds franchise and distribution rights for PepsiCo in South Africa, Lesotho, Eswatini, Namibia, and Botswana.

The enterprise-level transaction is valued at ZAR 3 billion (Rs 1,320 crore).

VBL aims to complete the cash consideration transaction before July 31, 2024.

Bevco, with a net revenue of Rs 1,590 crore in FY23, owns beverage brands such as Refreshhh, Reboost, Coo-ee, and JIVE.

Bevco has five manufacturing facilities in South Africa with an installed capacity of 3,600 BPM.

The acquisition expands VBL’s geographical footprint in Africa, focusing on South Africa’s growing soft drinks market.

Separately, VBL signs an MOU with the Government of Jharkhand for a proposed manufacturing plant in Patratu, Jharkhand, with a total capital outlay of approximately Rs 450 crore.

VBL accounts for 90% of PepsiCo’s beverage sales volume in India, with revenue for FY23 at Rs 10,595.83 crore.

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