Varun Beverages to acquire Devyani Food Industries Kenya business for US$32M

KENYA – Varun Beverages Limited (VBL) has announced that its wholly owned subsidiary, VBL Industries (Kenya), has signed an agreement to acquire the value-added dairy beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) (DFIL Kenya) for US$32 million (approximately Rs 3,050 million).  

The acquisition marks another strategic step in the company’s expansion across East Africa and strengthens its manufacturing and distribution capabilities in the region. 

According to the company, the acquisition includes the business together with all associated assets as a going concern. The transaction is expected to be completed on or before August 1, 2026, subject to the terms and conditions outlined in the agreement. 

Varun Beverages said the acquisition is expected to reinforce its position in Kenya and the wider East African market by leveraging DFIL Kenya’s established production facilities and distribution network. 

The manufacturing facility is located in Nakuru, Kenya, on a strategically positioned 52-acre site with a built-up area of approximately 17,500 square metres along a national highway.  

The plant produces value-added dairy beverages, juices and packaged drinking water and features modern infrastructure, including a reverse osmosis (RO) plant, boiler, effluent treatment plant, diesel generator set and air compressor. 

The company also disclosed that VBL Kenya is preparing to commence the production of carbonated soft drinks at the Nakuru facility, further expanding its beverage portfolio in the country. 

VBL clarified that the acquisition qualifies as a related-party transaction because VBL Industries (Kenya) is a wholly owned subsidiary of Varun Beverages, while DFIL Kenya is a promoter group company. However, the company stated that the transaction has been conducted on an arm’s length basis. 

The Kenya acquisition follows closely after Varun Beverages announced its entry into the South African market through the acquisition of Twizza via The Beverage Company Proprietary Limited (BevCo). Twizza manufactures and distributes branded non-alcoholic beverages, while BevCo produces and markets both PepsiCo products and its own beverage portfolio in South Africa. 

The successive acquisitions underscore Varun Beverages’ strategy of strengthening its manufacturing footprint and route-to-market capabilities across Africa, a region the company views as a key long-term growth market. 

Beyond carbonated soft drinks, the company continues to diversify into value-added dairy beverages, juices and bottled water, broadening its presence across multiple beverage categories. 

Varun Beverages is one of PepsiCo’s largest franchisees outside the United States, with franchise rights covering 26 Indian states and six union territories.

The company recently reported a 20.08% year-on-year increase in consolidated net profit to Rs 872.35 crore in the first quarter of CY26, while revenue from operations, excluding excise duty, rose 18.09% to Rs 6,574.19 crore. 

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