Varun Beverages to invest in two renewable energy companies

The beverage maker on Wednesday announced that it will invest upto 14% each in Huoban Energy 11 and Aspirative Creative Ventures for a cash consideration of Rs 2.90 crore and Rs 2.24 crore, respectively.

Both the entities are special purpose vehicle engaged in supplying solar power to consumers in the states of Maharashtra and Uttar Pradesh.

Transactions involving Huoban Energy 11 and Aspirative Creative Ventures are anticipated to close on or before 9 October 2024, and 9 December 2024, respectively.

The primary goal of these investments are to secure solar power generation and supply for VBL's facilities located in Supa Parner, Sakri, district Dhule, Maharashtra and Gorakhpur, Uttar Pradesh. Solar power is environment friendly and will also reduce the power cost at the said facilities, the company stated.

 

On completion of the proposed transactions, VBL shall hold upto 14% of equity share capital in the both the firms.

The company added that both the companies are yet to begin their operations.

Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.

The companys consolidated net profit jumped 76.34% to Rs 143.76 crore on 20.99% increase in revenue from operations to Rs 2,731 crore in Q4 CY23 over Q4 CY22.

The scrip shed 0.78% to settle at Rs 1,423.65 on Wednesday, 10 April 2024.

The domestic market is closed today, on account of Ramadan Eid.

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