Varun Beverages to acquire 50% stake in Everest Industrial Lanka for US$3.75M 

SRI LANKA – Varun Beverages Limited (VBL), a key bottler for PepsiCo, has announced the acquisition of a 50% stake in Everest Industrial Lanka (EIL) for a consideration of Rs 32.08 crore (US$3.75 million).  

The acquisition will support the company’s objective of sourcing visi-coolers internally within the group. 

EIL, based in Sri Lanka, is involved in the production, manufacturing, distribution, and sales of commercial visi-coolers and related accessories.  

According to an exchange filing, Varun Beverages confirmed that the Board of Investment, Sri Lanka has already granted the required approval for the investment. 

The acquisition was approved by the Investment and Borrowing Committee of the Board of Directors of Varun Beverages at a recent meeting.  

The transaction will be completed in the form of a cash consideration and is expected to close on or before May 30, 2025. 

As per VBL, Everest Industrial Lanka reported operational revenue of US$1.74 million in the financial year 2024, compared to US$1.86 million in the previous year. 

This acquisition forms part of Varun Beverages’ broader strategic expansion and diversification plans. The company has recently commenced the distribution of PepsiCo’s snack products in Zimbabwe and Zambia, expanding its presence in the packaged foods category. 

In addition to its international moves, Varun Beverages has also scaled up domestic operations with new greenfield manufacturing facilities launched in Kangra and Prayagraj. 

The company is also on track to open new units in Bihar and Meghalaya by 2025. 

Furthermore, backward integration facilities have been established at Prayagraj and in the Democratic Republic of Congo (DRC), aligning with the company’s long-term growth strategy. 

Varun Beverages posted strong financial results for the first quarter of 2025. The company recorded a 30.1% year-on-year increase in consolidated sales volumes, which rose to 312.4 million cases from 240.2 million cases in Q1 2024. 

Organic volume in India grew by 15.5%, contributing to the performance. Net realization per case in India rose by 1.8%, while remaining unchanged in other international markets, excluding South Africa.  

Overall, consolidated net realization per case dropped by 0.9%, due to lower pricing of in-house brands in South Africa. 

Revenue from operations grew 28.9% year-on-year to Rs 5,566.9 crore (US$650.4M) in Q1 2025. EBITDA rose 27.8% to Rs 1,263.9 crore (US$147.7M). 

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