Varun Beverages Limited shares gained 1.92% to trade at ₹520.45 as of 12:37 PM on Friday, with volumes of 20.64 lakh shares worth ₹106.70 crore on the NSE. The stock's 52-week high stands at ₹555.80, hit on June 17, 2026, while the company's current market capitalisation is approximately ₹1,75,271 crore. The positive market reaction reflects investor confidence in the strategic merger of the company's South African subsidiaries.
Varun Beverages Limited has announced the merger of its South African subsidiaries, Twizza Proprietary Limited and The Beverage Company Proprietary Limited (Bevco), to optimise operations and costs. The decision was approved by the boards of both companies, subject to compliance with South African laws. The merger will combine Twizza's manufacturing and distribution of own-branded non-alcoholic beverages with Bevco's operations, which include manufacturing and distribution of licensed PepsiCo Inc. beverages and franchise rights from PepsiCo Inc. in South Africa, Lesotho and Eswatini. As per the company clarification, the transaction involves only foreign subsidiaries and will not affect Varun Beverages' shareholding pattern.
According to the latest financial data, Bevco reported consolidated turnover figures of ZAR 4,818 million for the financial year ending June 30, 2025, while Twizza achieved a turnover of ZAR 1,695 million for the same period. The merger involves no cash consideration as Twizza is already a wholly-owned subsidiary of Bevco. As reported in the exchange filing, the entire share capital of Twizza shall stand cancelled on the merger becoming effective. This structure ensures that the consolidation is purely operational rather than requiring significant capital investment or dilution of existing shareholdings.
Twizza is engaged in the business of manufacturing and distribution of own-branded non-alcoholic beverages in South Africa, while Bevco operates in manufacturing and distribution of licensed PepsiCo Inc. beverages and owns franchise rights from PepsiCo Inc. in South Africa, Lesotho and Eswatini. The merger will combine these complementary operations under a single entity, potentially streamlining operations and reducing administrative overheads across the South African market. The transaction is classified as a related party transaction, but it will be conducted at arm's length, ensuring compliance with the applicable laws in South Africa.
