Pepsi’s largest bottler outside the US, Varun Beverages, is set to expand its operations by launching a mega-production facility in Kenya.
According to the company’s audited financial results for the quarter and the year ended December 31, 2025, the company identified the incorporation of its wholly owned subsidiary in Kenya as a key development.
“We have incorporated a wholly owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of manufacturing, distribution and selling of beverages,” Varun Beverages report read in part.
Varun Beverages also confirmed that it plans to begin construction of its production facility in Kenya in the first quarter of 2026, with commissioning targeted for the fourth quarter of 2027, and an expected capacity of 12–15 million cases.
“Q4 2027 – Kenya commissioning (12-15M cases capacity),” part of the report highlighted.
Varun Beverages Key Developments Highlights
Varun Beverages has confirmed 100% acquisition of a stake in Twizza (Pty) Limited, South Africa, for an enterprise value of approximately ZAR 2,095 million. This acquisition, subject to regulatory approvals, is expected to be completed by 30 June 2026.
Additionally, it entered into an exclusive distribution agreement with Carlsberg Breweries A/S to test market Carlsberg beer across its African subsidiaries.
Also Read: CMA Approves 5 New Market Entrants to Operate in Kenya’s Capital Markets
In the report, the company cited that in response to growing demand, it expanded its business scope to include alcoholic beverages, such as RTD products, beer, wine, and spirits, in India and abroad.
“Addition of alcoholic beverage business in the Main Objects of the Memorandum of Association,” they stated.
Furthermore, Varun Zimbabwe and Varun Zambia began distributing and selling PepsiCo’s snack products in their respective territories from 1 February 2025.
For production capacity expansion, four greenfield facilities in India commenced commercial operations during 2025, complemented by backward integration facilities at Prayagraj and the DRC plant.
Similarly, commercial production of PepsiCo snack products, including “Cheetos,” started in Morocco and Zimbabwe through Varun Beverages subsidiaries.
VBL acquired a 50% stake in Everest Industrial Lanka (Pvt) Limited to strengthen backward integration in Sri Lanka, along with the business of Sri Sri Lanka (Private) Limited
“The Board of Directors, in their meeting held on 03 February 2026, has approved a payment of final dividend of Rs. 0.50 (Fifty Paisa only) per equity share for the financial year 2025, subject to approval of shareholders at the ensuing AGM,” the report noted adding that CRISIL (an S&P Global Company) upgraded the companies long‑term rating for bank loan facilities to Crisil AAA/Stable from Crisil AA+/Stable.
Also Read: Meet Ugandan Billionaires and Owners of Company Affiliated with Pepsi in Kenya
Financial & Operational Performance
Varun Beverages’ profit after tax (PAT) rose by 16.2% to Rs. 30,620.4 million in CY2025, up from Rs. 26,342.8 million in CY2024.
“PAT increased by 16.2% to Rs. 30,620.4 million in CY2025 from Rs. 26,342.8 million in CY2024, the report said.
The growth was driven by higher volumes, lower finance costs, and increased other income, including interest on deposits in India and favourable currency movements in international markets.
Depreciation increased by 28.4% due to the commissioning of new plants in India and brownfield expansions in international markets.
Post repayment of debt through QIP proceeds, finance costs in India are negligible, while international finance costs are primarily from South Africa, including fair value adjustments on leases under Ind AS 116.
Follow our WhatsApp Channel and X Account for real-time news updates.
