Aion invests $90m in India's Varun Beverages

The size of Aion's stake has not been disclosed, but VBL said in a statement that the GP is now its largest external investor. Out of Aion's total investment, INR3 billion was committed directly to VBL in order to refinance existing debt and expand operations, while another INR3 billion went to purchase the stakes of existing shareholders. The selling shareholders have not been named.

VBL currently operates 22 bottling plants in India and other countries, including Sri Lanka, Nepal and Morocco. The company plans to grow its capacity through acquisitions and organic expansion. It is the flagship enterprise of the RJ Corp Group, which holds various interests in food-related industries, along with education, healthcare and hospitality.

This is one of the largest commitments in VBL since the International Finance Corporation committed $85 million in April 2014. That investment was intended to support the company's planned expansion in South Asia and Africa. Standard Chartered Private Equity is another major investor, having contributed INR2.5 billion in 2011 and another INR1.7 billion in 2012.

Aion is a joint venture of Apollo Global Management and ICICI Venture, intended to focus on special situations opportunities, including financial restructurings, recapitalizations and leveraged buyouts. The firm launched its first fund in 2013, reaching a final close last year at $825 million. Aion's other investments include a INR9.6 billion commitment to Avantha Holdings, alongside Apollo.

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• Topics
• South Asia
• Consumer
• Industrials
• Expansion
• India
• Aion Capital Partners
• Consumer
• manufacturing
• Growth capital