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Varun Beverages divests 41% stake in Varun Beverages Mozambique

10 Mar 2017 Evaluate

Varun Beverages (VBL), a key player in the beverage industry, has divested 41% stake in its Mozambique subsidiary, Varun Beverages Mozambique. The subsidiary contributed only 0.6% to the net revenues in 2016.

The divestment of the stake is in view of limited opportunity to scale-up operations which would have enabled the company to turnaround the loss making subsidiary. The company continues to hold a residual stake of 10% in the unit. The subsidiary recorded a loss of Rs 99 million in CY2016.

Varun Beverages is one of the largest franchisee in the world (outside US) of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. The company produces and distributes a wide range of CSDs, as well as a large selection of NCBs, including packaged drinking water.


Peers
Company Name CMP
Nestle India 1313.65
Varun Beverages 431.65
Britannia Industries 4751.35
LT Foods 405.50
Hatsun Agro Product 1116.60
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