Varun Beverages to Acquire DFIL Kenya's Dairy and Beverage Business
Varun Beverages Limited (VBL), through its subsidiary VBL Industries (Kenya), has announced an agreement to acquire the value-added dairy beverages, juices, and packaged drinking water business from Devyani Food Industries (Kenya) (DFIL Kenya). This transaction is valued at $32 million, approximately Rs 3,050 million.
The acquisition encompasses the entire business along with all associated assets. It is expected to be finalized by August 1, 2026, contingent on the fulfillment of the agreement's terms. VBL aims to bolster its market presence in Kenya and the larger East African region by leveraging DFIL Kenya’s established manufacturing and distribution capabilities.
DFIL Kenya's production facility is strategically located in Nakuru, Kenya, spanning a 52-acre land parcel and featuring a built-up area of about 17,500 square meters along a national highway. The plant is equipped with a reverse osmosis plant, boiler, effluent treatment systems, diesel generators, and air compressors, facilitating the production of dairy beverages, juices, and water. VBL Kenya is also set to begin the production of carbonated soft drinks at this facility.
VBL clarified that this acquisition is a related-party transaction, as VBL Industries (Kenya) is a fully owned subsidiary of Varun Beverages, while DFIL Kenya is part of a promoter group company. Despite this, the transaction has been conducted on an arm's length basis.
Varun Beverages is recognized as a major player in the beverage industry, being one of the largest franchisees of PepsiCo globally, outside the United States. It holds franchise rights for various PepsiCo products across multiple regions, including 26 states and 6 union territories in India, as well as territories in Nepal, Sri Lanka, and several African nations.
Financially, Varun Beverages reported a 20.08% increase in its consolidated net profit, reaching Rs 872.35 crore in Q1 CY26, compared to Rs 726.49 crore in Q1 CY25. Revenue from operations, excluding excise duty, saw an 18.09% year-over-year rise to Rs 6,574.19 crore in Q1 CY26.
