Varun Beverages to expand in Africa and South Asia with USD300 million investment
Varun Beverages Limited is a subsidiary arm of PepsiCo. The company announced its planned expansion in Asia and Africa through investment in its already existing business units valued USD300 mllion. The expansion would include its current business in Nepal, Morocco, India, Sri Lanka, Mozambique and Zambia. The planned investment would occur the following year, reported Ventures Africa.
The investment would be funded through a loan valued USD85 million. It would come from International Finance Corporation (IFC), World Bank’s private sector investment division. Other investors had also been considering to go public on the Stock Market.
Meanwhile, the International Monetary Fund would provide the investment with valued equity at USD85 million. According to Ventures Africa, other investment would be derived from additional debts and equity through the company’s account balance sheet.
Through the planned investment, Varun would increase the number of its workforce in Africa and South Asia from 4200 to around 8000. Meanwhile, IFC said that its involvement in the company’s plan to invest would increase the credibility of Varun Beverages as it prepares to go public.