For $15.1 million, Varun Beverages, an Indian multinational company run by billionaire Ravi Jaipuria, has agreed to buy PepsiCo's bottling business in Ghana. The deal expands Varun Beverages' presence in Africa and is part of a larger $169.6 million acquisition that covers operations in Ghana and Tanzania, the firm said in a statement.
Full ownership of Pepsi's bottling and distribution network in Ghana would be transferred to Varun Beverages through the acquisition of SBC Beverages Ghana Limited (SBCG), which was completed pending regulatory approvals. Pepsi, Pepsi Max, 7UP, 7UP FREE, Mirinda, Mountain Dew, and Evervess are among the PepsiCo franchised brands that SBCG produces and markets. Additionally, SBCG produces and markets energy drinks under the Cheetah brand.
The business operates a single, two-line manufacturing facility in Accra. By incorporating SBCG's operations into its current network, the company, which already has operations in a number of African nations, including Morocco and Zambia, hopes to strengthen its position in the area.
In India and a number of other nations, Varun Beverages is well-known for producing and distributing Pepsi, 7Up, Mirinda, and Mountain Dew. With a production plant in Accra, Ghana, SBCG has a significant presence in the country and produces important beverage goods under PepsiCo's global brand.
Varun Beverages has further solidified its dominance in the East African beverage market by securing the $154.5 million acquisition of SBC Tanzania in addition to the Ghana agreement. A key component of the company's growth plan is building a strong foundation in Africa, where it has already achieved notable progress during the 1990s.
One of PepsiCo's biggest international franchises, Varun Beverages, is headed by businessman Ravi Jaipuria, who is reported to have a net worth of $16 billion. With Jaipuria's conglomerate, RJ Corp, operating in industries including fast food and healthcare in addition to beverages, the corporation has expanded its reach into Nepal and Sri Lanka. Mr. Jaipuria was excited about the agreement, pointing out that Varun Beverages has a lot of potential to expand its operations in Tanzania and Ghana and produce millions of cases of beverages a year. The company's long-term goals to expand operations and carry on its tradition of delivering recognizable beverages all over the world are in line with this acquisition.
