Varun Beverages enters Kenya with $32 million acquisition of Devyani Foods unit

Indian beverage giant Varun Beverages Limited (VBL) is expanding its African footprint with a $32 million agreement to acquire the dairy beverages, juices, and packaged drinking water business of Devyani Food Industries Kenya Limited (DFIL Kenya).

The Ksh4.14 billion ($32.04 million) transaction, disclosed on July 6, 2026, is expected to be completed on or before August 1, 2026, subject to customary conditions. The acquisition will be executed through VBL Industries Kenya Limited, a wholly owned subsidiary of Varun Beverages, which will take over DFIL Kenya’s operations on a going-concern basis, including the well-known Daima brand.

Strategic entry into East Africa

The deal marks Varun Beverages’ formal entry into Kenya, a key gateway to East Africa’s fast-growing consumer market. The company said the acquisition will enable deeper market penetration while leveraging existing manufacturing infrastructure and distribution networks.

DFIL Kenya’s primary asset is a modern manufacturing facility located in Nakuru on a 52-acre site along a national highway. The plant features approximately 17,500 square metres of built-up area and is equipped with advanced production infrastructure, including reverse osmosis systems, boilers, effluent treatment facilities, diesel generators, and air compressors.

The facility holds internationally recognized certifications, including FSSC 22000 and ISO 9001:2015, positioning it to meet global food safety and quality standards.

Expanding production and product portfolio

Following completion of the acquisition, Varun Beverages plans to introduce carbonated soft drink production at the Nakuru facility, complementing its existing portfolio of non-carbonated beverages and packaged drinking water.

The company noted that the transaction is a related-party deal conducted on an arm’s length basis, as DFIL Kenya is part of its promoter group.

Strengthening PepsiCo bottling footprint

Varun Beverages is one of PepsiCo’s largest bottling partners outside the United States, with a growing presence across Asia and Africa. Its operations span multiple markets, including India, Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini, and the Democratic Republic of Congo.

The company also holds distribution rights in Namibia, Botswana, Mozambique, and Madagascar, underscoring its strategy to build a strong pan-African beverage network.

With this acquisition, Varun Beverages is positioning itself to capitalize on rising demand for packaged beverages in East Africa, while strengthening its supply chain and manufacturing base in the region.