Varun Beverages Completes Rs. 305 Crore Kenya Acquisition to Expand Beverage Portfolio

Varun Beverages Limited (VBL) has completed the acquisition of the value-added dairy beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) Limited through its wholly owned subsidiary, VBL Industries (Kenya) Limited. The transaction, valued at USD 32 million, equivalent to approximately Rs. 305 crore, became operational under the new management from August 1, 2026.

The acquisition marks another step in the company's international expansion strategy, strengthening its presence in East Africa while diversifying its product portfolio beyond carbonated beverages. The deal also brings an established distribution and go-to-market network, which the company plans to leverage for introducing carbonated soft drinks and energy drinks in the Kenyan market. 

The transaction follows VBL's continued expansion across international markets. The company recently strengthened its presence in South Africa through the consolidation of Twizza and is now extending its footprint in East Africa through the Kenya acquisition.

The company reported Q2 CY2026 consolidated revenue of Rs. 8,451.23 crore, reflecting 20.4 percent year-on-year growth compared to Rs. 7,017.37 crore in Q2 CY2025. Consolidated sales volume increased 19.8 percent year-on-year to 466.7 million cases, while international volumes recorded a 38.4 percent increase during the quarter.

Alongside the financial performance, VBL announced a second interim dividend of Rs. 0.5 per share with a record date of August 1, 2026, and extended its exclusive bottling agreement with PepsiCo India until April 30, 2049.

The acquisition strengthens VBL's ability to supply a wider range of non-alcoholic beverages across East Africa. The addition of dairy beverages, juices and packaged drinking water, supported by an established local distribution network, is expected to create opportunities across hotels, restaurants, cafés and institutional foodservice operators while supporting the company's long-term international growth strategy.