This acquisition encompasses all assets related to the business as a going concern. The deal is anticipated to be finalized on or before August 1, 2026.
Varun Beverages mentioned that this acquisition will strengthen its presence in Kenya and the larger East African region by utilizing Devyani Food Industries Kenya’s manufacturing infrastructure and distribution capabilities.
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The manufacturing plant is situated on a 52-acre site in Nakuru, Kenya, featuring a built-up area of 17,500 square meters located along a national highway. The facility produces value-added dairy beverages, juices, and packaged drinking water, and is equipped with various amenities, including an RO plant, boiler, effluent treatment facility, DG set, and air compressor.
The company reported that the plant holds certifications, including Food Safety System Certification 22000 and ISO 9001:2015. Additionally, Varun Beverages stated that its Kenya unit is gearing up to introduce a range of carbonated soft drinks.
The transaction is categorized as a related-party deal since Devyani Food Industries (Kenya) Ltd is a promoter group company. The company confirmed that the transaction has been carried out on an arm’s-length basis.
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A recent report from CLSA indicated that Varun Beverages shares could appreciate by 23% and maintained a ‘high conviction outperform’ rating with a price target of ₹654 per share.
CLSA noted that Varun Beverages’ collaboration with Japan’s Asahi Group Holdings for the Calpis brand is strategically beneficial, as it diversifies the company’s offerings with a distinct fermented dairy-based ready-to-drink (RTD) product that resembles a premium lassi sub-segment.
The day before, Varun Beverages announced its partnership with Asahi Group to manufacture, distribute, and market the Calpis brand—a fermented milk-based beverage with over a century-long history in Japan. Asahi will oversee product development and provide technical support, while its Indian subsidiary will manage marketing and brand management.
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Varun Beverages Ltd shares closed at ₹495.70, down by ₹19.45, or 3.78%, on the BSE.
(Edited by : Jomy Jos Pullokaran)
First Published: Jul 6, 2026 4:56 PM IST
