Varun Beverages Limited (VBL) has announced the acquisition of 100% of Twizza Proprietary Limited through its subsidiary in South Africa. This acquisition will expand VBL’s presence in the South African market. Twizza has a strong manufacturing footprint with 3 facilities and achieved sales volumes of 71 million cases and net revenue of ZAR 1,689 million in the year ending June FY25.
Strategic Acquisition in South Africa
Varun Beverages Limited is set to acquire 100% stake in Twizza Proprietary Limited, a South African beverage company. The deal will be executed through VBL’s subsidiary company in South Africa, known as The Beverages Company Proprietary Limited (“Bevco”). The acquisition is subject to regulatory approvals.
Twizza Overview
Twizza is engaged in manufacturing and distributing its own branded non-alcoholic beverages in South Africa. The company operates 3 manufacturing facilities located in Cape Town, Queenstown and Middelburg. These facilities have a combined annual production capacity of approximately 100 million 8oz cases.
Financial Performance
Twizza reported sales volumes of 71 million cases and generated net revenue of ZAR 1,689 million (approximately INR 9,019 million, with 1 ZAR = 5.34 INR) for the year ending in June FY25. The proposed transaction values Twizza at approximately ZAR 2,095 Million (roughly INR 11,187 mn; using an exchange rate of 1 ZAR = 5.34 INR).
South African Market Overview
South Africa represents a substantial market opportunity with a population of about 70 million, characterized by a median age of around 28 years and an urbanization rate of 70%.
Growth Drivers
The acquisition allows Varun Beverages to tap into the South African soft drinks market, which is supported by product innovation and growth in energy drinks. This strategic move aims to capitalize on emerging opportunities and drive future growth for VBL.
Source: BSE