Introduction:
FMCG stock has acquired two African companies for ₹1,431 crore to boost its presence in the growing African market. The deals will expand its manufacturing capacity and geographic footprint, further strengthening its strategic position and supporting its robust financial health and growth plans.
Share Price movement of Varun Beverages:
As of November 13, Varun Beverages’ share price opened at ₹591.10, reaching an intraday high of ₹594.95. The stock hit a low of ₹568.25 before settling at ₹574.35, reflecting significant intraday volatility in the trading session.
Varun Beverages shares in focus:
Varun Beverages (VBL), an FMCG stock and PepsiCo bottler, has announced the acquisition of two African companies, SBC Tanzania and SBC Beverages Ghana, for ₹1,304 crore and ₹127.1 crore, respectively. These acquisitions aim to strengthen VBL’s presence in Africa, a key growth market.
SBC Tanzania, with five manufacturing units and ₹1,505.3 crore in FY24 revenue, and SBC Ghana, with one facility generating ₹32 crore, will significantly expand VBL’s geographical footprint. The deals, expected to conclude by March 2025, are subject to approvals from PepsiCo and revenue authorities in Ghana and Tanzania.
Additionally, VBL recently acquired Lunarmech, a plastic cap manufacturer with FY24 revenue of ₹183.4 crore. HSBC reaffirmed its Buy rating on VBL, citing robust financial health and growth strategies, setting a target price of ₹780, further boosting investor confidence.
Recent news About Varun Beverages:
Varun Beverages recently completed the acquisition of Lunarmech Technologies, a manufacturer of plastic caps for PET bottles, enhancing its in-house production capabilities to support its operations.
Stock performance of Varun Beverages for Period of 1 week, 6 months and 1 year:
Over the past week, Varun Beverages’ stock declined by 2.49%. Over the last six months, it recorded a decrease of 3.61%. However, the stock delivered a strong 44.8% gain over the past year, reflecting solid long-term performance.
Shareholding pattern of Varun Beverages:
| All values in % | Sep-24 | Jun-24 | Mar-24 |
| Promoters | 62.66 | 62.66 | 62.91 |
| FII | 24.18 | 25.32 | 25.79 |
| DII | 4.97 | 4.54 | 4.16 |
| Retail & others | 8.19 | 7.46 | 7.16 |
About Varun Beverages Industries:
Varun Beverages Ltd., a key PepsiCo bottler, operates in the beverage industry, producing and distributing carbonated drinks, juices, and packaged water. With a strong presence across India and international markets, the company focuses on expanding its portfolio and enhancing manufacturing capabilities.
