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Varun Beverages inks $56 m equity financing with Standard Chartered Equity
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Wednesday, 20 July, 2011, 08 : 00 AM [IST]
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Our Bureau, Bangalore
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Varun Beverages (International) Limited (VBIL) has concluded a US$56 million private equity financing with Standard Chartered Private Equity Limited (SCPE). The funds would be used to accelerate VBIL’s growth in its beverages business in India and overseas.
The company is promoted by the RJ Corp group which comprises diversified business interests ranging from beverages, fast food restaurants, ice creams & dairy products, breweries, education, health care and hospitality. It is engaged in the business of bottling, distribution and marketing of soft drink beverages, sold under the trademarks owned by PepsiCo Inc., USA. VBIL, through itself and its subsidiaries, operates in India, Sri Lanka, Nepal and Morocco.
According to Ravi K Jaipuria, chairman, VBIL, to convert the huge opportunity of growth, penetration and enhanced territories domestically and internationally into reality, we need to build, year after year, large capacities, involving huge capital expenditure. Induction of SCPE in group's core business of beverage shall help grow this business faster.
"The business model is now totally hedged through operations at multiple geographies and induction of SCPE provides new opportunity to leverage the financials, expand at much faster pace and bring economies of scale,” states Raj Gandhi, president and group (CFO), VBIL.
“We are extremely pleased to partner with the RJ Corp Group. The group is a long- standing client of Standard Chartered Bank and there exists significant overlap between our geographic footprints. With Pepsi’s backing, VBIL is already a leader in the beverage market, and we look forward to a long-term association with the group and the company,” said Nainesh Jaisingh, MD and global co-head, Standard Chartered Private Equity.
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