The acquisition includes all assets associated with the business as a going concern. The transaction is expected to be completed on or before August 1, 2026.
Varun Beverages said the acquisition will enable it to deepen its presence in Kenya and the broader East African region by leveraging Devyani Food Industries Kenya’s manufacturing infrastructure and distribution capabilities.
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The manufacturing facility is located on a 52-acre land parcel in Nakuru, Kenya, with a built-up area of 17,500 square metres on a national highway. The plant manufactures value-added dairy beverages, juices and packaged drinking water and is equipped with facilities including an RO plant, boiler, effluent treatment plant, DG set and air compressor.
The company said the plant has certifications including Food Safety System Certification 22000 and ISO 9001:2015. Varun Beverages also said its Kenya unit is preparing to launch a range of carbonated soft drinks.
The transaction is a related-party deal as Devyani Food Industries (Kenya) Ltd is a promoter group company. The company said the transaction has been undertaken on an arm’s-length basis.
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In its June report, brokerage firm CLSA said Varun Beverages shares could rise 23% and maintained a ‘high conviction outperform’ rating with a price target of ₹654 per share.
According to CLSA, Varun Beverages’ partnership with Japan-based Asahi Group Holdings for the Calpis brand is strategically positive as it adds a differentiated fermented dairy-based ready-to-drink (RTD) offering, which is akin to a premium lassi sub-segment, to Varun Beverages’ existing portfolio.
A day prior, Varun Beverages said it has partnered with Asahi Group to manufacture, distribute and sell the latter’s Calpis brand — a fermented milk-based beverage with over a century of presence in Japan. Asahi will be responsible for product development and technical support, and its Indian subsidiary will handle the marketing and brand management.
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Shares of Varun Beverages Ltd ended at ₹495.70, down by ₹19.45, or 3.78%, on the BSE.
