Varun Beverages: Non-Pepsi debut in Kenya; Opportunity clear, some questions remain…

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Varun Beverages: Non-Pepsi debut in Kenya; Opportunity clear, some questions remain…

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Varun Beverages

Non-Pepsi debut in Kenya; Opportunity

clear, some questions remain…

Maintain Rating: BUY | PO: 570.00 INR | Price: 494.85 INR

VBL Kenya enters into a business transfer agreement 07 July 2026

Varun Beverages, through its recently incorporated wholly owned subsidiary VBL Equity

Industries (Kenya), has entered into a business transfer agreement to acquire the

Aditya Mathur >>

business of Devyani Food Industries (Kenya) for a purchase consideration of US$32mn Research Analyst

(~Rs3bn). This is an unlisted promoter group company which gives VBL access to a BofAS India aditya.mathur@bofa.com

strategically located manufacturing facility in Kenya, producing value-added dairy

Pritesh Sonar >>

beverages, juices and packaged water. VBL intends to launch energy drinks and Research Analyst

carbonated soft drinks in the country over the coming months, and this acquisition could BofAS India pritesh.sonar@bofa.com

provide a headstart. The company intends to also leverage the go-to-market network of

Devyani Food Industries (Kenya), through which it distributes the existing product

portfolio including the Kenyan dairy brand Daima, juices and Aquaclear water. PepsiCo

currently has a different bottling partner in Kenya, and VBL will operate independently. Stock Data

Manufacturing and GTM capabilities seem to be the focus PricePrice Objective 494.85570.00 INRINR

We do not have explicit details on valuation benchmarks or the latest revenue and Date Established 27-Apr-2026

profitability of the business shared in the release; however, we believe the transaction Investment Opinion B-1-7

may be close to the written down asset value.