Varun Beverages plans to acquire PepsiCo India’s existing franchise rights

10 Aug 2017 Evaluate

Varun Beverages (VBL) has received an approval for its intent to enter into a binding agreement to acquire PepsiCo India’s previously franchised territories of the state of Odisha and parts of Madhya Pradesh along with three manufacturing units at Cuttack, Bargarh and Bhopal (Mandideep), subject to the satisfactory completion of due diligence and final approval of PepsiCo.

The board of directors at its meeting has approved for the same. Upon completion of this acquisition, VBL will be a franchisee for PepsiCo products across 18 States and 2 Union Territories. The proposed acquisition is in line with the company’s strategy to expand into contiguous territories to garner better operating leverage and asset utilization through economies of scale.

Varun Beverages is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA).


Varun Beverages Share Price

612.20 -16.00 (-2.55%)
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Varun Beverages 612.20
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