Transaction Details
VBL Industries (Kenya) Limited (VBL Kenya), a wholly-owned subsidiary of Varun Beverages Limited, has entered into a Business Transfer Agreement to acquire the value-added dairy beverages, juices, and packaged drinking water business of Devyani Food Industries (Kenya) Limited (DFIL Kenya). The information was received by the company at 10:01 AM on July 6, 2026.
Financial Details
The purchase consideration is USD 32 million, approximately INR 3,050 million using an exchange rate of 1 USD = 95.30 INR. VBL Kenya will pay this amount to DFIL Kenya towards the purchase consideration.
Assets Included
The acquisition includes all assets associated with the business as a going concern. The manufacturing facility is located on a 52-acre land parcel with a built-up area of 17,500 square meters on a national highway in Nakuru, Kenya. The facility includes utilities such as an RO plant, boiler, effluent treatment plant, DG set, and air compressor. The plant has accreditations from Food Safety System Certification 22000 and ISO 9001:2015.
Strategic Rationale
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. VBL Kenya is preparing to launch carbonated soft drinks range.
Related Party Aspects
VBL Kenya is a wholly-owned subsidiary of Varun Beverages Limited, while DFIL Kenya is a promoter group company. The transaction falls within related party transactions but is conducted at arm's length basis. There is no shareholding in the entity with whom the agreement is executed.
Timeline
The transaction is expected to be completed on or before August 1, 2026.