Varun Beverages share price in focus: Firm to acquire S African firm Twizza at EV of ₹1,118.7 crore; key details

Twizza is engaged in the business of manufacturing and distributing its own branded non-alcoholic beverages. It operates through three manufacturing facilities in Cape Town, Queenstown, and Middelburg and has a combined annual production capacity of 100 million cases.

The acquisition is done on an "enterprise value of ZAR 2,095 million (₹1,118.7 crore)", which will be "payable in cash", said a regulatory filing from Varun Beverages Ltd (VBL).

"The Board of Directors of Varun Beverages at their meeting held today inter alia considered and approved the acquisition of 100% share capital of Twizza at an enterprise value of ZAR 2,095 million through our subsidiary company in South Africa, Bevco," it said.

The deal would be subject to regulatory and other approvals, it said.

Deal completion date

Over the indicative time period for completion of the acquisition, VBL said "on or before June 30, 2026."

Twizza's financials

For the financial year ended on March 31, 2025, Twizza's turnover was 1,689 million ZAR (₹9,010.26 million).

"The acquisition will enable BevCo to penetrate deeper into the South Africa market through Twizza’s three manufacturing facilities located at Cape Town, Queenstown and Middelburg. Twizza also has backward integration facilities at all its plants, which include a total of 5 preform lines and 1 closure line, it said.

Consequent to the acquisition, Twizza will become a step-down subsidiary of the company.

The Beverage Company acquisition

In March 2024, VBL acquired The Beverage Company, South Africa, along with its wholly owned subsidiary, BevCo. This acquisition allowed the company to consolidate its presence in franchised territories in South Africa, Lesotho, and Eswatini, as well as territories with distribution rights in Namibia, Botswana, Mozambique, and Madagascar.

On November 13, 2024, VBL entered into a share purchase agreement with Tanzania Bottling Company SA and SBC Beverages Ghana for the purchase of 100% at an equity value of $154.50 million for Tanzania and $15.06 million for Ghana. Both are PepsiCo’s business.

Varun Beverages Morocco SA updates

Besides, Varun Beverages Morocco SA, a wholly owned subsidiary of VBL, has an agreement to manufacture and package Cheetos in Morocco. This is in addition to the existing distribution agreement for PepsiCo’s snacks portfolio, consisting of Lays, Cheetos, and Doritos in the territory of Morocco, it said.

According to VBL, it is one of the largest franchisees of PepsiCo in the world (outside the USA). In 2024, VBL's revenue was at ₹20,007.7 crore, and it sold 1,124 million cases globally.

Varun Beverages Q2 FY26 Results

Varun Beverages Ltd reported an 18.5% rise in consolidated profit after tax to ₹745.2 crore in the September quarter (Q2 FY26), driven by lower finance costs and higher other income.

The company had posted a consolidated profit after tax (PAT) of ₹628.83 crore in the same quarter last fiscal.

The growth in PAT was driven by lower finance costs and higher other income, which includes interest on deposits in India and favourable currency movement in international territories, it said.

Consolidated revenue from operations in the third quarter stood at ₹5,047.74 crore against ₹4,932.06 crore in the year-ago period, it added.

About Varun Beverages

Varun Beverages Limited (“VBL” or the “company”) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA).

VBL has been associated with PepsiCo since the 1990s and have over two and half decades consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the distribution network.

The company manufactures, distributes and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.

PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo NCB brands produced and sold by the Company include Tropicana Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina.