Varun Beverages to Acquire DFIL Kenya's Dairy and Juice Business
Varun Beverages Limited (VBL), through its subsidiary VBL Industries (Kenya), has entered into an agreement to acquire the value-added dairy beverages, juices, and packaged drinking water business of Devyani Food Industries (Kenya) (DFIL Kenya). The transaction is valued at $32 million, approximately Rs 3,050 million, and is expected to be completed by August 1, 2026, subject to agreement terms.
The acquisition includes all assets associated with the business as a going concern. VBL aims to leverage DFIL Kenya's established manufacturing infrastructure and distribution network to bolster its presence in Kenya and the broader East African region.
DFIL Kenya's manufacturing facility is strategically located in Nakuru, Kenya, covering a 52-acre land parcel with a built-up area of around 17,500 square meters. The facility is equipped with modern infrastructure, including a reverse osmosis (RO) plant, boiler, effluent treatment plant, diesel generator set, and air compressor. VBL Kenya plans to start producing carbonated soft drinks at this facility.
The transaction is categorized as a related-party transaction, as VBL Industries (Kenya) is a wholly-owned subsidiary of Varun Beverages, while DFIL Kenya is a promoter group company. However, VBL has stated that the transaction is conducted on an arm's length basis.
Varun Beverages is a prominent player in the beverage industry and is one of the largest franchisees of PepsiCo globally, excluding the USA. The company holds franchises for various PepsiCo products across 26 Indian states, six union territories, and several international markets including Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini, and DRC, along with distribution rights in Namibia, Botswana, Mozambique, and Madagascar.
In the first quarter of CY26, VBL reported a 20.08% increase in consolidated net profit to Rs 872.35 crore, compared to Rs 726.49 crore in the same period the previous year. Revenue from operations, excluding excise duty, rose by 18.09% year-on-year to Rs 6,574.19 crore. Despite the positive financial performance, VBL's stock fell by 1.90% to Rs 486.30 on the BSE.
