Varun Beverages (VBL) intends to acquire PepsiCo India’s previously franchised sub territory in the state of Jharkhand along with manufacturing units and franchise rights for Chhattisgarh. This acquisition would be subject to satisfactory completion of due diligence and final approval of PepsiCo.
With PepsiCo planning to consolidate its business in India, VBL may emerge as the preferred partner, further expanding its reach.
Post the completion of these intended acquisitions, VBL’s presence in India would increase to 20 states and two union territories.
VBL enjoys over 25 years of strategic association with PepsiCo and accounts for around 47 per cent of PepsiCo’s beverage sales volume in India. In addition to India, it is present in Nepal, Sri Lanka, Morocco and Zambia.
Consumer’s shift towards consuming healthy drinks is expected to boost non-carbonated and water segment.