ScanX reports as Varun Beverages completes its $32M acquisition of Devyani Food Industries' dairy, juice, and water business in Kenya.
Strategic Expansion Varun Beverages Completes $32 Million Acquisition of Kenyan Dairy Business
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PepsiCo’s largest international bottler acquires Devyani Food Industries’ dairy, juice, and bottled water operations in Nakuru to deepen its footprint in East Africa.

Reporting by ScanX Trade details the completion of a $32 million acquisition by Varun Beverages Limited (VBL), through its wholly owned subsidiary VBL Industries (Kenya) Limited, to purchase the value-added dairy beverages, juices, and packaged drinking water business of Devyani Food Industries (Kenya) Limited (DFIL Kenya). Executed as a going-concern transaction, the deal deepens VBL’s operational presence in Kenya and the broader East African beverage market by integrating an established processing footprint.

The centerpiece of the acquisition is a modern manufacturing plant in Nakuru, Kenya, strategically located on a 52-acre site along a national highway. Featuring approximately 17,500 square meters of built-up space, the facility holds internationally recognized quality and safety accreditations, including Food Safety System Certification (FSSC) 22000 and ISO 9001:2015, positioning VBL to scale commercial output across multiple liquid dairy and beverage categories.

Equipped with advanced utility infrastructure—including a reverse-osmosis water purification system, industrial boilers, an eco-friendly effluent treatment plant, and diesel generators—the Nakuru site provides immediate processing capacity for established dairy lines, including the Daima brand. Beyond maintaining existing dairy and juice production, VBL plans to install new packaging lines at the facility to commence local manufacturing of carbonated soft drinks and energy drinks.

Because DFIL Kenya is a promoter group company controlled by the Jaipuria family, the transaction constitutes a related-party deal under Indian stock exchange guidelines, though VBL confirmed the agreement was negotiated on an arm’s-length basis at an valuation multiple of 0.9x EV/Revenue. The Kenyan deal follows VBL’s recent acquisition of South Africa’s Crickley Dairy, reflecting a disciplined strategy to diversify beyond carbonated soft drinks into high-growth value-added dairy and functional beverages across key African markets.

Ultimately, the acquisition secures a crucial secondary manufacturing hub in East Africa for PepsiCo’s leading international bottling partner. By combining DFIL Kenya’s established distribution networks with VBL’s global operational expertise, the company optimizes supply chain economics, enhances regional production flexibility, and strengthens its long-term growth trajectory across the continent.

Source: ScanX Trade

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