Varun Beverages Limited (VBL) has announced an investment of ₹412.80 crores in its South African subsidiary, The Beverage Company Proprietary Limited (Bevco). The investment was made through the subscription of 19.84 lakh ordinary shares at a price of ZAR 453.47 per share, amounting to a total of ZAR 90 crores.
The capital infusion will be utilized to repay Bevco’s existing debt and strengthen its balance sheet, enabling further business growth. Following this investment, Bevco’s share capital increased by 2.42%.
Bevco, established on April 12, 2016, operates in the manufacturing and distribution of licensed (PepsiCo Inc.) and own-branded non-alcoholic beverages. The company also holds franchise rights from PepsiCo Inc. for South Africa, Lesotho, and Eswatini.
In the financial year ending June 30, 2024, Bevco reported consolidated revenue of ZAR 409 crores, marking consistent growth over the last three years:
- FY 2023-24: ZAR 409 crores
- FY 2022-23: ZAR 361 crores
- FY 2021-22: ZAR 319 crores
This investment aligns with Varun Beverages’ strategy to enhance its global operations and drive growth in international markets. Bevco’s strengthened financial position is expected to support its expansion and bolster its role as a leading beverage distributor in Southern Africa.
