Varun Beverages to acquire 50% stake of Sri Lankan visi-cooler maker. Writer：Lance Lan

Varun Beverages to acquire 50% stake of Sri Lankan visi-cooler maker

Varun Beverages Ltd, a major  bottler for PepsiCo, announced its plan to acquire a 50 percent stake in Everest Industrial Lanka Ltd for USD 3.75 million,Everest is a Sri Lankan company involved in the production, manufacturing, distribution, and sale of commercial visi-coolers and related accessories.

The investment and borrowing committee of Varun Beverages's board of directors approved the proposed acquisition during a meeting held, according to a regulatory filling by the company.

Varun Beverages stated that this strategic acquisition will enable the company to internally source its requirements of visi-coolers within its own group. This move is expected to streamline its supply chain and potentially lead to cost efficiencies in the long run.

The company further disclosed that it has already received the necessary approval from the board of Investment of Sri Lanka for the proposed acquisition. The transaction is anticipated to be finalized on or before May 30, 2025.

This investment marks a significant step for Varun Beverages in vertically integrating its operations. By gaining a stake in a visi-cooler manufacturing company, Varun Beverages aims to secure a reliable and potentially more cost-effective source for essential equipment used in the distribution and sale of its beverage products. The move also highlights Varun Beverages continued expansion and strategic investments in related sectors within the South Asian Market.