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SCPE makes second investment in PepsiCo's South Asian bottler

  • Susannah Birkwood
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Standard Chartered Private Equity (SCPE) has invested a further INR1.7 billion ($32 million) in Varun Beverages (VBIL), the largest bottler for PepsiCo in South Asia.

The cash injection follows SCPE's INR2.5 billion ($48 million) purchase of a reported 5% stake in the firm in July 2011, as part of a deal which aimed to support the company's expansion in India as well as in Morocco, Nepal and Sri Lanka.

VBIL is engaged in bottling, distributing and marketing beverages sold under trademarks owned by PepsiCo. It is owned by RJ Corp, which comprises diversified business interests spanning beverages, fast food restaurants, ice creams and dairy products, breweries, education, healthcare and hospitality.

The company plans to use the newly injected funds to buy Pepsi's minority stake in its subsidiary, Varun Beverages (VBL), and merge the latter business with VBIL.

"Broadening of the company's capital base shall enable the company to implement its capex plans, enhance capacities and penetrate new geographies," commented Ravi Jaipuria, chairman at VBIL.

SCPE Director Udai Dhawan holds a seat on Varun Beverage's board and has been advising the company ahead of its projected 2014 IPO.

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