Varun Beverages Sets Sight on Expansion with Rs 7,500 Crore Fundraise

Varun Beverages, a major PepsiCo bottler, aims to raise Rs 7,500 crore via Qualified Institutions Placement to fund business expansion and balance sheet strengthening. The funds will support investments in subsidiaries, acquisitions, and debt repayment. The Jaipuria family-led enterprise plans widespread domestic and international market growth.

Varun Beverages, renowned as a leading beverage bottler for PepsiCo, has unveiled plans to raise Rs 7,500 crore through Qualified Institutions Placement (QIP) to bolster its expansion strategies. The company's board, during a meeting, sanctioned the capital raising initiative, pending shareholders' approval, as detailed in a regulatory filing.

The capital amassed will be directed towards investments in subsidiaries, joint ventures, and strategic acquisitions, while also expanding the existing business footprint. Furthermore, the funds will aid in managing debt repayment and serving broader corporate objectives, aligning with Varun Beverages' comprehensive growth plans.

In a significant step to broaden its operational territories, earlier acquisitions, notably the South African Beverage Company, underline Varun Beverages' intent to extend beyond the Indian market, strengthening its presence in Africa. The company, chiefly promoted by the Jaipuria family, already commands a substantial volume of PepsiCo's beverage sales in India.

(With inputs from agencies.)