Varun Beverages: Forays into Kenya with acquisition of a promoter group company (Devyani Food Kenya)

Research evidence excerpt

Varun Beverages: Forays into Kenya with acquisition of a promoter group company (Devyani Food Kenya)

J P M O R G A N Asia Pacific Equity Research

07 July 2026

Varun Beverages Overweight

VARB.NS, VBL IN

Forays into Kenya with acquisition of a promoter group Price (06 Jul 26):Rs494.85

company (Devyani Food Kenya) Price Target (Jun-27):Rs565.00

Varun Beverages has announced the acquisition of Devyani Food Industries Kenya Consumer, Retail, Media

AC(DFIL Kenya), a promoter group company through its subsidiary VBL Kenya, to Latika Chopra, CFA

further expand its overseas footprint. The transaction is valued at US$32mn (Rs (91-22) 6157-3584

3.05bn), implying an EV/Revenue multiple of ~0.9x , consistent with VBL’s latika.chopra@jpmorgan.com

historical overseas acquisition range of 0.8–1.2x EV/Revenue (see Table 1). The Himanshu Singh

acquisition provides VBL with immediate manufacturing and distribution (91-22) 6157-3610

capabilities in Kenya, as the company plans to expand its product portfolio with himanshu.x6.singh@jpmorgan.com

carbonated drinks and energy drinks. As with VBL’s multiple overseas Saransh S Gokhale

acquisitions in the past, its ability to scale up and integrate these acquisitions will (91-22) 6157 3578

saransh.gokhale@jpmchase.com

remain a key monitorable for investors. In CY25, overseas business accounted for J.P. Morgan India Private Limited, J.P. Morgan

33% of Revenue and 25% of EBITDA for VBL. Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

• Transaction details. VBL Kenya has entered into an agreement to acquire the

value-added dairy beverage, juice, and packaged drinking water business of

Style Exposure

DFIL Kenya, inclusive of all associated assets, for a total consideration of

Rs3.05bn (US$32mn).