20-05-2025
Varun Beverages to acquire 50% stake of Sri Lankan visi-cooler maker
HighlightsVarun Beverages Limited announced its plan to acquire a 50 percent stake in Everest Industrial Lanka Private Limited for USD 3.75 million, aiming to enhance its supply chain efficiency. The investment will allow Varun Beverages Limited to internally source visi-coolers, potentially leading to cost savings in the long run. The transaction has received approval from the Board of Investment of Sri Lanka and is expected to be finalized by May 30, 2025, marking a significant step in Varun Beverages Limited's vertical integration strategy.
Varun Beverages Ltd
(VBL), a major bottler for PepsiCo, announced on Monday its plan to acquire a 50 percent stake in Everest Industrial Lanka (Pvt) Ltd (EIL) for USD 3.75 million (approximately Rs 32 crore). EIL is a Sri Lankan company involved in the production, manufacturing, distribution, and sale of
commercial visi-coolers
and related accessories.
The investment and borrowing committee of VBL's board of directors approved the proposed
acquisition
during a meeting held on Monday, according to a regulatory filing by the company.
VBL stated that this strategic acquisition will enable the company to internally source its requirements for
visi-coolers
within its own group. This move is expected to streamline its supply chain and potentially lead to cost efficiencies in the long run.
The company further disclosed that it has already received the necessary approval from the Board of Investment of Sri Lanka for the proposed acquisition. The transaction is anticipated to be finalized on or before May 30, 2025.
This investment marks a significant step for
Varun Beverages
in vertically integrating its operations. By gaining a stake in a visi-cooler manufacturing company, VBL aims to secure a reliable and potentially more cost-effective source for essential equipment used in the distribution and sale of its beverage products. The move also highlights VBL's continued expansion and strategic investments in related sectors within the South Asian market.
