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.
