NEW DELHI: In a step closer to pan-India ownership of PepsiCo franchise rights, Varun Beverages (VBL) on Monday said it has acquired the former’s bottling business in South and West India for an undisclosed sum.
VBL is the leading bottling partner of the American snacks and beverage major and already runs PepsiCo’s bottling operations in the north and east region.
In a BSE filing, the company said the board has approved the company’s intent to enter into a binding agreement with PepsiCo India Holdings to acquire franchise rights in South and West regions for a national bottling, sales and distribution footprint in 27 states and seven Union Territories in India.
Ravi Jaipuria, chairman, VBL, said that this move will enable the two companies to further strengthen their close to a three-decade-long partnership.
“This comes as a welcome force multiplier to our efforts to aggressively expand our beverage business across geographies,” he added.
PepsiCo India said the decision to franchise its company-owned bottling operations in South and West regions to VBL, will unlock the full potential of PepsiCo’s operation model in India.
“The move will profitably drive synergies of scale, operational productivity and efficiency across all facets of PepsiCo’s beverage business,” said Ahmed El Sheikh, President & CEO, PepsiCo India.