Varun Beverages Plans to acquire franchise rights from SMV Group in Karnataka, Maharastra and Madya Pradesh
Deepthi | Myequity news | Date : 07-02-2019 19:45:00 IST
The Board of Directors of Varun Beverages has approved its intent to enter into a binding agreement to acquire franchise rights from SMV Group in the state of Karnataka (13 districts), Maharastra (14 districts) and Madya Pradesh (3 districts) subject to the satisfactory completion of due diligence and other approvals including final approval of PepsiCo. These rights had previously been franchised by PepsiCo to SMV Group. Upon completion of this acquisition, Company will be a franchisee of PepsiCo products across 22 states and 2 union territories of India. About Varun Beverages Limited
Commenting on the development Mr. Ravi Jaipruria, Chairman, Varun Beverages Ltd. said: “We are happy to announce our intent to acquire the franchise rights of parts of the states of Karnataka, Maharastra and Madya Pradesh. This is a part of our strategy to consolidate our presence in contiguous territories and garner market share. These are highly under-penetrated markets which offer long term, sustainable growth opportunities. Further, the manufacturing facilities are strategically located close to target markets which will reduce time to market and enable optimization of freight and logistics costs, aiding margin expansion.”
Varun Beverages Limited is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks as well as large selection of non-carbonated beverages including drinking water sold under trademarks owned by PepsiCo.