Varun Beverages surges 9% on PepsiCo’s Jharkhand deal

NEW DELHI: Shares of Varun Beverages climbed 9 per cent in Thursday's trade after the company signed an agreement with PepsiCo India's previously franchised sub-territory in Jharkhand.

Following the announcement the stock rose 8.91 to hit a high of Rs 582.85 on BSE.

Varun Beverages told stock exchanges that its board approved a proposal to sign an agreement to acquire PepsiCo India's previously franchised sub-territory in Jharkhand along with manufacturing facilities and franchise rights for Chhattisgarh.

The company is among the largest franchisee in the world (excluding US) of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo.

The board of the company approved "its intent to enter into a binding agreement to acquire Pepsico India's previously franchised sub-territory in Jharkhand (20 districts) along with manufacturing facilities and franchise rights for the state of Chhattisgarh," it said.

Upon completion of this acquisition, the company will be a franchisee for PepsiCo products across 20 States and 2 Union Territories of India.