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SCPE takes minority stake in PepsiCo's top Indian bottler

  • Anita Davis
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Standard Chartered Private Equity (SCPE) is set to pay INR250 crore ($56 million) for a 5% stake in PepsiCo’s top bottler in South Asia, Varun Beverages International, The Economic Times reported. That commitment would value the company at more than $1 billion.

The funding would be used to support the company's expansion in India as well as in markets including Morocco, Nepal and Sri Lanka. Varun Beverages is owned by RJ Corp., and the $56 million is said to be the largest investment the holding company has seen to date. The investment comes two months after another subsidiary, fast-food chain operator Devyani International, received INR175 crore ($39.2 million) from ICICI Ventures for a 10% stake.

SCPE Director Udai Dhawan said that Varun Beverage's potential is substantial given the "low per capita consumption of soft drinks" in the market. As part of the transaction, Dhawan will take a seat on Varun Beverage's board of directors, and will further advise the company ahead of an intended 2014 IPO.

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