FMCG stock in focus after board approves 3 acquisitions worth ₹1600 Cr

A major Indian multinational bottler for PepsiCo continues its strategic growth with significant acquisitions. The company is set to acquire SBC Tanzania for ₹1,304 crore and SBC Ghana for ₹127 crore.  

Share Price Movement 

The share price of Varun Beverages went down by 2.35 percent to Rs. 570.55 per share on Wednesday, a decrease from its previous close of Rs. 584.3 per share. The market capitalisation now stands at approximately Rs. 1,85,356 crore as of November 13, 2024.

What Happened 

Varun Beverages Limited’s Board approved three major acquisitions: 1) 100% share capital of SBC Tanzania for INR 1,304 crore; 2) 100% share capital of SBC Beverages Ghana for INR 127 crore; and 3) the remaining 39.93% stake in Lunarmech Technologies Private Limited for INR 200 crore, making it a wholly-owned subsidiary.

Q2 Financial Highlights

According to its recent filing, in the quarter ending September 2024, Varun Beverages’s consolidated revenue from operations has increased by 24.12 percent YOY from Rs. 3,871 crore in Q2 FY24 to Rs. 4,805 crore in Q2 FY25 and decreased by 33.2 percent QoQ from Rs. 7,197 crore in Q4 FY24. 

The company’s consolidated net profit has increased by 2.9 percent, from Rs. 514 crore in Q2 FY24 to Rs. 629 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 50 percent QoQ from Rs. 1.262 crore.

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Market Outlook 

The Indian soft drinks industry shows promising growth potential, driven by its young population (aged 15-64), rising disposable incomes from increased workforce participation (especially women), and improved infrastructure for distribution. While carbonated beverages remain the most popular choice, energy drinks are emerging as a strong growth category. The industry’s expansion is further supported by better cold storage facilities helping companies reach rural markets, alongside changing consumer preferences and urbanisation trends.

Shareholding Pattern

As of the November 2024 shareholding pattern, Varun Beverages Limited is primarily held by the promotors at 62.66 percent, foreign institutional investors hold 24.18 percent, and the public with 8.18 percent.

About Company

Varun Beverages Limited (VBL), a prominent Indian multinational, specialises in manufacturing, bottling, and distributing beverages. Established in 1995 in New Delhi, the company has grown into the largest bottler of PepsiCo products outside the United States. VBL is also a major PepsiCo franchisee globally, reflecting its extensive reach in the beverage sector.

With operations in 27 states and seven union territories across India, VBL has expanded globally to markets including Nepal, Sri Lanka, Morocco, and Zimbabwe. The company serves over one-sixth of the world’s population, delivering beverages through 3.8 million outlets. Its product range includes Pepsi, Mountain Dew, 7UP, Mirinda, Tropicana juices, Aquafina water, and Gatorade, along with dairy products and iced teas.

VBL’s market position remains strong, with impressive financial growth. Under the leadership of Mr. Ravi Jaipuria, the company continues to expand its footprint and diversify its offerings, solidifying its role as a major player in the global beverage industry.

Written By Fazal Ul Vahab C H

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