Indian beverage group Varun Beverages Limited (VBL) has signed an agreement to acquire the dairy beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) Limited (DFIL Kenya) in a transaction valued at $32 million (Sh4.14 billion).
The transaction, expected to close on or before August 1, 2026, involves the transfer of DFIL Kenya’s business as a going concern for the $32 million consideration, with no change to DFIL Kenya’s own shareholding.
DFIL Kenya is a promoter-group company controlled by the same family that controls Varun Beverages, making this a related-party deal that the company says was conducted on an arm’s-length basis.
“The acquisition will enable VBL to deepen its penetration in Kenya and the broader East African region by leveraging DFIL Kenya’s manufacturing infrastructure and distribution capabilities,” the company said in its filing.
The deal includes a manufacturing facility on a 52-acre site along a national highway in Nakuru with 17,500 square metres of built-up area.
The plant already produces value-added dairy beverages, juices, and packaged drinking water and runs on infrastructure that includes a reverse osmosis plant, boiler, effluent treatment plant, diesel generator, and air compressor.
The plant is certified under Food Safety System Certification 22000 and ISO 9001:2015, meeting internationally recognized food safety and quality management standards.
The acquisition will be executed through VBL Industries Kenya Limited, a wholly owned subsidiary of Varun Beverages.
After the acquisition, VBL Kenya will assume control of DFIL Kenya’s operations including the Daima brand.
The investment in the beverage plant comes after Varun Beverages chairman Ravi Jaipuria extended Varun Beverages’ PepsiCo bottling licence in India to 2049, from the previous expiry date of 2039.
Notably, the May 21 agreement also removed restrictions that had stopped Varun Beverages, one of PepsiCo’s largest franchise bottlers globally, from pursuing non-PepsiCo business activities while handling brands such as Pepsi, Mountain Dew, Mirinda, 7UP, Tropicana, Slice, Aquafina, Sting, Gatorade and Lipton Ice Tea.
The investment places Jaipuria among a growing list of billionaire investors expanding their presence in Kenya’s industrial and consumer sectors, including Aliko Dangote and Mohammed Dewji.
The move comes as Kenya’s beverage market becomes increasingly competitive, with major players investing in local production to serve the country’s growing consumer demand.
Tanzanian billionaire Mohammed Dewji has announced plans to invest $50 million (Sh6.5 billion) in a soft drinks manufacturing plant in Mombasa through his MeTL Group, aiming to compete in Kenya’s soft drinks market with its Mo Cola brand once the facility is built.
If completed as scheduled on August 1, the acquisition will significantly expand Varun Beverages’ manufacturing base in Kenya while positioning the company to grow its dairy, juice and packaged water business across East Africa.
– By Daniel Kamau
