Varun Beverages Board Approves Subsidiary in Kenya, Object Clause Alterations

Varun Beverages’ board approved the incorporation of a wholly-owned subsidiary in Kenya for manufacturing and distributing beverages. It also approved alterations to the company’s Object Clause, including businesses related to packaged drinking water, power generation, and alcoholic beverages. These decisions aim to broaden the company’s operational scope and market presence, subject to shareholder approval. The board meeting concluded on October 29, 2025.

Kenyan Subsidiary Approved

The Board of Directors at Varun Beverages has approved the incorporation of a wholly-owned subsidiary company in Kenya. This new entity will focus on manufacturing, distribution, and selling beverages within the region, expanding Varun Beverages’ international footprint.

Object Clause Alterations

The board has also approved alterations to the Object Clause of the Memorandum of Association (MOA), pending shareholder approval. These changes include:

  • Packaged Drinking Water Business: Manufacturing, processing, and distributing packaged drinking water, frozen foods, and related materials, including plastics and preforms.
  • Power Generation: Generating, transmitting, and supplying power from conventional and renewable sources, including solar and wind power.
  • Alcoholic Beverages: Manufacturing, producing, and distributing Ready To Drink (RTD) alcoholic beverages, including beer, wine, and spirits, both in India and abroad.
  • Financial Performance Update – Q2 2025

    Varun Beverages also released its unaudited financial results for Q2 2025 and the nine months ended September 30, 2025. Key highlights from the consolidated results include:

  • Total Income: ₹72,401.79 million for Q2 2025 compared to ₹49,563.11 million in Q2 2024.
  • Profit Before Tax: ₹17,320.44 million for Q2 2025.
  • Net Profit After Tax: ₹13,254.88 million for Q2 2025.
  • Earnings Per Share: ₹3.89 (basic and diluted) for Q2 2025.
  • For the nine months ended September 30, 2025:

  • Total Income: ₹181,440.30 million compared to ₹167,403.42 million in the same period last year.
  • Net Profit After Tax: ₹28,020.38 million.
  • Details on Kenyan Subsidiary (Annexure I)

    The detailed disclosure for the Kenyan subsidiary includes:

  • Name: Varun Food and Beverages (Kenya) Limited or similar name.
  • Country of Incorporation: Kenya.
  • Industry: FMCG.
  • Consideration: Kenyan Shilling (KSH) 1,25,00,000/-, for 1,25,000 shares at KSH 100/- each.
  • Shareholding: 100% subscription to the initial paid-up share capital by Varun Beverages Limited.
  • Source: BSE

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