AION Investments invests Rs 600 crore in Varun Beverages

RI Bureau

Varun Beverages, the bottling arm of Ravi Jaipuria led PepsiCo India has raised Rs 600 crore from AION Capital Partners, a joint venture between private equity firms Apollo Global Management and ICICI Venture.

"AION now becomes the largest external investor in the company. The investment will enable VBL to further accelerate its growth plans," said Ravi K Jaipuria, chairman of Varun Beverages (VBL), South Asia's largest bottlers for PepsiCo.

AION'S primary investment of Rs 300 crore is in the form of non-convertible debentures. VBL will use the proceeds to refinance its existing debt.

“AION is extremely pleased to partner with the R.J. Corp. group, which has over four decades of experience in the Indian consumer industry,” said Parth Gandhi, managing director at AION.

VBL comprises diversified business interests including beverages, fast food restaurants, ice creams & dairy products, education, health care and hospitality.

VBL contributes over half of the entire group's turnover.

Varun Beverages holds bottling and distribution franchise rights from PepsiCo for a number of territories across India, Nepal, Sri Lanka and Africa.

It manages nine PepsiCo bottling plants across India Haryana, Western UP, Rajasthan, the North East, Goa and Delhi-NCRand three bottling plants overseas Nepal, Sri Lanka and Morocco.

RJ Corp's existing investors include ICICI Ventures among others. Standard Chartered PE and Singapore-based Temasek Holdings.