Varun Beverages Limited (VBL) is strengthening its presence in East Africa after its wholly owned subsidiary, VBL Industries (Kenya) Limited, agreed to acquire the value-added dairy beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) Limited in a transaction valued at US$32 million.
Announced on July 7, the acquisition forms part of Varun Beverages’ broader strategy to expand its manufacturing base and diversify its beverage portfolio across Africa. The deal is expected to close on or before August 1, 2026, subject to customary conditions.
The transaction, valued at approximately 0.9x enterprise value-to-revenue, covers the acquisition of the business as a going concern, including its manufacturing assets, operations and related infrastructure. Although Devyani Food Industries (Kenya) is part of the promoter group, Varun Beverages said the transaction was conducted on an arm’s-length basis.
Strategic Manufacturing Platform
A key attraction of the acquisition is a manufacturing facility in Nakuru, strategically located along a national highway on a 52-acre site. The plant includes a built-up area of approximately 17,500 square metres and is equipped with essential production infrastructure, including a reverse osmosis water treatment plant, boiler, effluent treatment system, diesel generator and air compressor.
The facility also holds internationally recognised certifications, including FSSC 22000 and ISO 9001:2015, supporting food safety and quality management standards.
Varun Beverages plans to leverage the existing production capacity and distribution network to strengthen its operations in Kenya while introducing additional product categories, including carbonated soft drinks and energy drinks.
Building an African Beverage Network
The Kenya acquisition is the latest step in Varun Beverages’ expansion across the continent. Earlier this year, its South African subsidiary, The Beverage Company Proprietary Limited (Bevco), agreed to acquire a 100 percent stake in Crickley Dairy Proprietary Limited for an enterprise value of ZAR238 million (approximately US$14.3 million). That transaction, announced in March 2026, remains subject to regulatory approval from South Africa’s Competition Commission.
Varun Beverages has said its recent acquisitions are intended to broaden its portfolio beyond traditional soft drinks into higher-growth categories such as value-added dairy beverages and juices, while strengthening its manufacturing and distribution capabilities across key African markets.
The latest investment underscores the company’s continued focus on building a diversified regional beverage platform through targeted acquisitions and production assets that can support future category expansion.
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