Varun Beverages to acquire franchise rights from SMV Group in three states
8th Feb 2019

Varun Beverages has received board’s approval to enter into a binding agreement to acquire franchise rights from SMV Group in the State of Karnataka (13 districts), Maharashtra (14 districts) and Madhya Pradesh (3 districts), subject to the satisfactory completion of due diligence and other approvals including final approval of PepsiCo.

These rights had previously been franchised by PepsiCo to SMV Group. Upon completion of these acquisitions, the company will be a franchisee of PepsiCo products across 22 States and 2 Union Territories of India. The proposed acquisition is in line with the company’s strategy to expand into contiguous territories to garner better operating leverage and asset utilization through economies of scale.

Varun Beverages is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA).