Varun Beverages Announces Acquisition of South African Company for ₹1118 Crore

Varun Beverages Ltd., a leading player in the FMCG and beverage sector, is once again in the spotlight for a major international expansion. The company’s board has approved the acquisition of a 100% stake in South Africa’s Twizza Proprietary Ltd. The enterprise value of this acquisition has been set at approximately ZAR 2,095 million, or approximately ₹1,118.7 crore.

This deal will be executed through Varun Beverages’ South Africa-based subsidiary, The Beverages Company Proprietary Ltd. (BevCo).

However, the transaction is subject to regulatory approvals. The company will need to obtain approvals from the Competition Commissions of South Africa, Botswana, and Eswatini.

The company informed the stock exchange that the transaction is expected to be completed by June 30, 2026.

Twizza is engaged in the manufacturing and distribution of non-alcoholic beverages and has its own brands. Following the acquisition, Twizza will become a step-down subsidiary of Varun Beverages, meaning it will be directly under the control of VBL within the group structure.

This deal is expected to strengthen the presence of both BevCo and Varun Beverages in South Africa. Twizza has three manufacturing plants in South Africa, located in Cape Town, Queenstown, and Middelburg.

Significantly, all three plants are backward integrated. The company has a total of 5 preform lines and 1 closure line, which are considered crucial for operational efficiency.

In terms of financials, Twizza recorded a turnover of approximately ₹901.9 crore for the financial year ending June 30, 2025.

In FY25, the company’s total sales volume was 71 million cases, and net revenue also stood at ₹901.9 crore. This clearly indicates that Twizza already has a strong presence in the South African non-alcoholic beverage market. This acquisition is considered strategically very important for Varun Beverages. The company is already aggressively expanding in international markets, and Africa is becoming a major growth region for it.

Through Twizza, the company will not only gain access to local brands but also acquire a ready-made manufacturing and distribution network.

In the stock market, Varun Beverages Ltd. shares closed at ₹469.95 on Friday, down 0.77%.

So far in 2025, the stock has fallen by approximately 28%. However, for long-term investors, this deal appears to strengthen the company’s international growth story.