Varun Beverages Limited (VBL) has approved two key strategic decisions. First, VBL will acquire an additional 23% equity stake in Jager Renewables Two Private Limited for Rs. 7.05 Crore, raising its total holding to 49%. This move secures solar power for captive consumption in Rajasthan. Second, VBL approved issuing a Corporate Guarantee of ZAR 1,240 Million for its South African subsidiary, The Beverage Company Proprietary Limited, in favor of FirstRand Bank Limited.
Strategic Investment in Green Energy Infrastructure
The Investment and Borrowing Committee of Varun Beverages Limited, following a meeting on March 11, 2026, approved a significant acquisition aimed at ensuring captive solar power supply. The Company approved acquiring an additional 23% Equity Share Capital in Jager Renewables Two Private Limited.
Jager Renewables is a special purpose vehicle incorporated on June 6, 2024, designed to generate and supply solar power in Rajasthan under the group captive model. The consideration for this transaction is set at Rs. 7.05 Crore. Upon completion, VBL’s total shareholding in Jager will stand at 49%. The rationale for this acquisition is to obtain environmentally friendly solar power for VBL’s facilities located in Kota, Alwar, Jaipur, Jodhpur, and Bhiwadi, thereby reducing power costs.
It is noted that Jager is yet to commence operations, and VBL does not exercise significant influence or control over Jager currently, making this investment a compliance measure under electricity regulations rather than a related party transaction.
Support for South African Subsidiary
In a separate approval, the Board sanctioned the issuance of a Corporate Guarantee on behalf of The Beverage Company Proprietary Limited (“Bevco”), a subsidiary of VBL located in South Africa.
The guarantee is provided in favour of FirstRand Bank Limited (acting through its Rand Merchant Bank division) to secure a credit facility extended to Bevco. The guarantee amount is ZAR 1,240 Million and is valid up to July 31, 2026. VBL confirmed that this Corporate Guarantee will have no impact on the listed Company itself. Furthermore, the promoters or promoter groups hold no interest in this guarantee arrangement, confirming it is conducted at an arm’s length basis.
Source: BSE
