Varun Beverages Limited (VBL) announced the approval of two key proposals by its Investment and Borrowing Committee. The company will acquire an additional 23% equity stake in Jager Renewables Two Private Limited for Rs. 7.05 Crore to secure captive solar power for operations in Rajasthan, increasing VBL’s total stake to 49%. Additionally, VBL approved issuing a Corporate Guarantee of ZAR 1,240 Million for its South African subsidiary, The Beverage Company Proprietary Limited (Bevco).
Acquisition of Additional Stake in Solar Power Vehicle
Varun Beverages Limited (VBL) has approved an investment to deepen its commitment to renewable energy sourcing. The company will acquire an additional 23% Equity Share Capital of Jager Renewables Two Private Limited (Jager). Jager is a special purpose vehicle established to generate and supply solar power in Rajasthan under the group captive model.
Financial Details and Increased Holding
The consideration for this acquisition is set at Rs. 7.05 Crore. Upon completion, VBL’s total shareholding in Jager will increase to 49% of the Equity Share Capital. The primary objective is to obtain solar power for captive consumption at VBL facilities located in Kota, Alwar, Jaipur, Jodhpur, and Bhiwadi, aiming to reduce power costs and utilize environmentally friendly energy sources.
Jager was incorporated on June 6, 2024, and is yet to commence operations; therefore, historical turnover data is not applicable. The acquisition is being finalized on March 11, 2026, via a cash consideration.
Corporate Guarantee for South African Subsidiary
In a separate resolution, the Board Committee approved issuing a Corporate Guarantee on behalf of The Beverage Company Proprietary Limited (“Bevco”), a subsidiary located in South Africa.
Guarantee Terms
The guarantee is issued in favour of FirstRand Bank Limited (acting through its Rand Merchant Bank division). The amount guaranteed is ZAR 1,240 Million, and the validity extends up to July 31, 2026. This guarantee is intended to secure a credit facility extended to Bevco. VBL confirmed that this corporate guarantee has no material impact on the listed entity.
The disclosure confirmed that neither the acquisition nor the guarantee involves any related party transactions where the promoter group has an interest, confirming that both transactions are conducted at “arm’s length.”
Source: BSE
