PepsiCo wants to increase sales in emerging markets

PepsiCo wants to increase sales in emerging markets

Varun Beverages (International) Ltd (VBIL) is to use a fresh US$32m investment to fund a buyout of PepsiCo's minority stake in a subsidiary of the South Asian bottler.

The division - also called Varun Beverages - will merge with VBIL after the buyout, the company announced yesterday (8 October). The funding comes from the private equity arm of UK bank Standard Chartered, which invested $48m in VBIL in July in return for a minority stake.

VBIL chairman Ravi Jaipuria said: “Broadening of the company’s capital base shall enable the company to implement its capex plans, enhance capacities and penetrate new geographies.”

VBIL, which bottles, distributes and markets PepsiCo beverages in India, Sri Lanka, Nepal and Morocco, is the largest bottler for PepsiCo in South Asia.

Last year, PepsiCo said emerging markets will account for at least half of its global sales in the next five years.