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Global banking major Standard Chartered’s private equity arm has invested $56 million in Varun Beverages which does bottling, distribution and marketing for Pepsi’s products.
The funds would be used to accelerate VBIL’s growth in its beverages business in India and overseas, a release issued here today by Standard Chartered Private Equity (SCPE) said.
“We need to build large capacities involving huge capital expenditure. Induction of SCPE in the group’s core business of beverage shall help grow this business faster,” Varun Beverages Chairman, Mr Ravi K. Jaipuria, was quoted as saying in the release.
SCPE Director, Mr Udai Dhawan, will be joining the board of Varun Beverages. “The current low per capita consumption of soft drinks in India offers tremendous opportunity for VBIL... The company’s growth may further be aided through inorganic means,” he said.
However, there was no mention about the stake picked up by Standard Chartered Private Equity through the investment even though a report in a leading financial daily said it has picked up 5 per cent, valuing the company at $1 billion.
VBIL is promoted by RJ Corp group, which comprises diversified business interests ranging from beverages, fast food restaurants, ice-creams and dairy products, breweries, education, health care and hospitality, the release said.
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