Varun Beverages Ltd in talks to acquire PepsiCo's bottling operations

Varun Beverages Ltd (VBL) is in advanced talks to buy bottling, sales and distribution of PepsiCo in the south and west for its carbonated drinks business. This move will give it nationwide control of these functions.

RJ Corp-owned firm is already running PepsiCo's bottling operations in the north and east, contributing over 51% to its India's sales volume. 

In December 2018, Pepsi-Co had formed a team under Suchitra Rajendra, Chief Human Resources Officer, for managing the likely transition of employees from company-owned to franchisee-owned operations. 

An executive aware of the development said, "The divestment of the bottling operations nationally is in line with the company’s global direction to run asset-light businesses across world markets and operate the majority of its bottling operations through franchisee partners. The likely transaction, however, will not be (completed) in the short term since it will involve multiple and complicated transfers of assets and employees."