We would like to inform you that the Investment and Borrowing Committee of the Board of Directors of the Company at its meeting held today (started at 02:15 P.M. and concluded at 02:35 P.M.) considered and approved to acquire 50% stake of Everest Industrial Lanka (Private) Limited ("EIL") for a consideration of USD 3.75 Million (INR 320.88 Million). EIL, a company in Sri Lanka is engaged in the business of production, manufacturing, distribution and selling of commercial visi-coolers and related accessories.
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Varun Beverages Limited (VBL) has approved the acquisition of a 50% stake in Everest Industrial Lanka (Private) Limited (EIL), a Sri Lanka-based company that manufactures and sells commercial visi-coolers. The deal is valued at USD 3.75 Million (approximately INR 320.88 Million) and will be paid entirely in cash. The move is aimed at vertical integration, allowing VBL to source its visi-cooler requirements internally within the group. EIL reported a turnover of USD 1.74 Million in FY2024 (USD 1.86M in FY2023, USD 1.47M in FY2022) and has already received regulatory approval from Sri Lanka's Board of Investment. The transaction is expected to be completed on or before May 30, 2025, and is not a related-party transaction.
This is a small tuck-in acquisition (less than 0.2% of VBL's market cap) aimed at supply-chain efficiency rather than revenue growth, so the direct financial impact on near-term earnings will be limited. However, it signals VBL's continued focus on backward integration and cost control, which is mildly positive for long-term shareholders.