Varun Beverages Limited (VBL), PepsiCo’s sole bottler in India and its largest bottler outside the US, has entered into an agreement to acquire a 100% stake in Twizza Proprietary, a South African manufacturer and distributor of non-alcoholic beverages, for an enterprise value of ZAR 2,095 million (approximately Rs 1,118.7 crore).
The acquisition will be executed through VBL’s South African subsidiary, The Beverages Company Proprietary Limited (Bevco), and is aimed at expanding the company’s market share in the region.
Through the deal, VBL will gain control of three additional manufacturing facilities located in Cape Town, Queenstown and Middelburg. These plants are backward-integrated and include five preform lines and one closure line, enhancing operational efficiency. For the financial year ended June 30, 2025, Twizza reported a turnover of ZAR 1,689 million (around Rs 901.9 crore) and sold approximately 71 million 8oz cases.
The transaction is expected to be completed on or before June 30, 2026, subject to customary regulatory approvals from competition authorities in South Africa, Botswana and Eswatini. Upon completion, Twizza will operate as a step-down subsidiary of Varun Beverages.
Africa has emerged as a key growth driver for VBL in 2025. While domestic volumes in India remained flat during the first nine months of 2025 due to heavy rainfall, international volumes grew 9%, led primarily by African markets. International operations contributed to an improved gross margin of 56.7% in Q3 CY2025, supported partly by a higher water sales mix.
VBL currently operates across multiple African countries with varying rights. It holds franchise rights in Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini and the Democratic Republic of Congo (DRC), and distribution rights in Namibia, Botswana, Mozambique and Madagascar. The company is also in the process of incorporating a wholly owned subsidiary in Kenya for manufacturing and distribution.
In parallel, VBL is diversifying its African portfolio beyond PepsiCo beverages. It has entered into an exclusive distribution agreement with Carlsberg Breweries A/S to test-market Carlsberg beer through select African subsidiaries. Its snacks manufacturing facility in Morocco has reached full-scale operations.
A new processing plant in Zimbabwe is progressing towards commissioning, while subsidiaries in Zambia and Zimbabwe have been designated for the manufacturing and distribution of Simba Munchiez. South Africa delivered a strong growth performance in Q3 CY2025, with the company continuing to strengthen its market position.
Ongoing backward integration across key African locations is also improving operational resilience. In international markets, this shift has resulted in a higher share of internal costs such as employee and power expenses, replacing raw material purchases. VBL currently operates 12 international production facilities outside India and has recently commissioned a new plant in the DRC.