Varun Beverages expands global footprint with strategic acquisitions in Tanzania, Ghana, and India

Varun Beverages (VBL), a key franchisee of PepsiCo and a leader in the beverage manufacturing and distribution industry, has announced strategic acquisitions to enhance its global presence and strengthen its operational capabilities. These acquisitions span across Tanzania, Ghana, and Lunarmech Technologies, India. The announcement, detailed in a board presentation, outlines the following transactions:

Acquisition in Tanzania
VBL will acquire a 100% stake in SBC Beverages Tanzania Limited (SBCT), which manufactures and distributes PepsiCo’s non-alcoholic beverages, including popular brands like Pepsi, 7UP, Mirinda, Mountain Dew, and energy drink Supa Komando.

• Transaction Value: ~USD 154.50 million (~INR 13,040 million).

• Facilities: SBCT operates five manufacturing facilities with 12 beverage manufacturing lines, located in Dar-es-Salaam, Mbeya, Arusha, and Mwanza.

• Market Performance: SBCT reported net revenue of TZS 474,939 million (~INR 15,053 million) in FY 2023-24, achieving sales of 74 million 8oz cases.

Acquisition in Ghana
VBL will acquire a 100% stake in SBC Beverages Ghana Limited (SBCG), which also produces and distributes PepsiCo brands, including the energy drink Cheetah.

• Transaction Value: ~USD 15.06 million (~INR 1,271 million).

• Facilities: SBCG has one manufacturing facility in Accra with two RGB manufacturing lines.

• Market Performance: SBCG reported net revenue of GHS 62 million (~INR 320 million) in FY 2023-24, with sales of 2.25 million 8oz cases.

Acquisition of Lunarmech Technologies
VBL will acquire the remaining 39.93% equity stake in Lunarmech Technologies, making it a wholly-owned subsidiary. Lunarmech specializes in manufacturing plastic closures for PET bottles, used primarily by VBL in-house.

• Transaction Value: ~INR 2,000 million.

• Facilities: Lunarmech operates a facility in Jaipur and is constructing another in Jammu.

• Market Performance: Lunarmech reported net revenue of INR 1,834 million in FY 2023-24.

These acquisitions reflect VBL’s commitment to strengthening its operational capabilities, expanding its global footprint, and enhancing its production efficiency to meet growing market demands.

The transactions are subject to regulatory and other necessary approvals, including those from PepsiCo, local authorities, and relevant competition commissions.