According to reports from CNBC TV18 and Business Standard, Varun Beverages Ltd announced that its wholly owned subsidiary, VBL Industries (Kenya) Ltd, has entered into a business transfer agreement to acquire the value-added dairy beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) Ltd for ₹305 crore (about $32 million). The transaction, expected to close by August 1, 2026, includes a manufacturing facility in Nakuru and is aimed at expanding the company's presence in Kenya and the broader East African region. As per the latest regulatory filing, the acquisition will enable Varun Beverages to deepen its penetration in Kenya and the broader East African region by leveraging Devyani Food Industries (Kenya) Ltd's manufacturing infrastructure and distribution capabilities. The transaction will be completed through VBL's wholly owned Kenya subsidiary and includes all assets associated with the business as a going concern.
As reported by CNBC TV18 and Business Standard, the manufacturing facility is located on a 52-acre land parcel in Nakuru, Kenya, with a built-up area of 17,500 square metres on a national highway. The plant manufactures value-added dairy beverages, juices and packaged drinking water and is equipped with facilities including an RO plant, boiler, effluent treatment plant, DG set and air compressor. The facility holds certifications including Food Safety System Certification 22000 and ISO 9001:2015, and Varun Beverages' Kenya unit is preparing to launch a range of carbonated soft drinks. The plant is also accredited by international agencies, ensuring quality standards across its operations.
According to CNBC TV18 and Business Standard, the acquisition will enable Varun Beverages to deepen its presence in Kenya and the broader East African region by leveraging Devyani Food Industries Kenya's manufacturing infrastructure and distribution capabilities. The transaction is a related-party deal as Devyani Food Industries (Kenya) Ltd is a promoter group company, though the company stated the transaction has been undertaken on an arm's-length basis. This strategic move aligns with Varun Beverages' position as one of the largest franchisees of PepsiCo globally outside the USA, strengthening its regional beverage portfolio. The acquisition remains subject to completion under the agreed terms and successful integration of the acquired business, with timely completion of the transaction and integration of acquired operations being key factors for operational benefits.
The latest acquisition comes shortly after Varun Beverages announced its entry into South Africa through the acquisition of Twizza via The Beverage Company Proprietary Limited (BevCo). As reported by Storyboard18, Twizza manufactures and distributes branded non-alcoholic beverages in South Africa, while BevCo is engaged in the production and distribution of PepsiCo as well as its own branded non-alcoholic drinks in the country. The back-to-back acquisitions underscore Varun Beverages' strategy of expanding its manufacturing footprint and strengthening its route-to-market capabilities across Africa, one of the company's key international growth markets. This dual expansion strategy demonstrates the company's commitment to establishing a comprehensive presence across major African markets.
According to Business Standard, Varun Beverages shares fell 1.90% to currently trade at ₹486.30 on the BSE following the acquisition announcement. The company reported strong financial performance in Q1 CY26, with consolidated net profit jumping 20.08% to ₹872.35 crore compared with ₹726.49 crore posted in Q1 CY25. Revenue from operations (excluding excise duty) surged 18.09% YoY to ₹6,574.19 crore in Q1 CY26. As of the current date, VBL has been granted franchises for various PepsiCo products across 26 states and 6 union territories in India, and holds distribution rights for PepsiCo products in territories including Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC.
