Varun Beverages Bets on East Africa Growth with Rs 305 Crore Deal

Varun Beverages Ltd (VBL) has announced that its Kenya-based subsidiary has entered into an agreement to acquire the beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) for Rs 305 crore, strengthening its manufacturing and distribution presence in East Africa.

According to the company's regulatory filing, the acquisition includes all associated assets of Devyani Food Industries (Kenya) on a going concern basis for a consideration of $32 million. The transaction is expected to be completed on or before August 1, 2026.

The acquisition is expected to support Varun Beverages' expansion strategy by strengthening its presence in Kenya and the broader East African market through the acquired company's manufacturing infrastructure and distribution network.

The manufacturing facility is located in Nakuru, Kenya, on a 52-acre land parcel along a national highway and includes a 17,500 square metre built-up area. The facility manufactures value-added dairy beverages, juices and packaged drinking water and is equipped with infrastructure including a reverse osmosis (RO) plant, boiler, effluent treatment plant, DG set and air compressor. The plant also holds accreditations from international agencies.

The acquisition follows Varun Beverages' recent business alliance with Japan's Asahi Group Holdings to introduce CALPIS products in the Indian market.

The company also reported a strong financial performance for the first quarter of the 2025-26 calendar year. Net profit increased 20 percent year-on-year to Rs 878 crore, compared to Rs 731 crore in the corresponding period last year.

Revenue from operations grew 18 percent to Rs 6,721 crore, while input costs also increased 18 percent to Rs 3,152 crore during the quarter. Earnings per share rose to Rs 2.58 from Rs 2.15 a year earlier, while gross margins improved by 62 basis points, supported by advance procurement of key raw materials.

Varun Beverages, one of the largest PepsiCo franchise bottlers outside the United States, continues to expand its manufacturing footprint and beverage portfolio across domestic and international markets.