Varun Beverages Share Price in Focus; Announces Merger of Subsidiaries Bevco and Twizza

On July 2, 2026, Varun Beverages Limited disclosed plans to merge its subsidiaries, The Beverage Company Proprietary Limited (Bevco) and Twizza Proprietary Limited (Twizza) as per the exchange filings. This merger aims to streamline operations and reduce costs, subject to South African legal compliance. 

Details of the Merger 

The merger involves Twizza, a wholly-owned subsidiary of Bevco, which will be integrated into its parent company. Twizza reported a turnover of ZAR 1,695 million for the financial year ending June 30, 2025, while Bevco's consolidated turnover for the same period was ZAR 4,818 million. This merger is classified as a related party transaction, conducted at arm's length. 

Business Operations of Bevco and Twizza 

Twizza operates in the manufacturing and distribution of its branded non-alcoholic beverages in South Africa. Bevco, on the other hand, manufactures and distributes both licensed (PepsiCo Inc.) and its branded non-alcoholic beverages in South Africa. Bevco also holds franchise rights from PepsiCo Inc. in South Africa, Lesotho, and Eswatini. 

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Rationale and Financial Implications 

The merger is intended to create synergies in business operations and optimise operational costs. As Twizza is a wholly-owned subsidiary of Bevco, there will be no cash consideration or issuance of new shares. The entire share capital of Twizza will be cancelled once the merger becomes effective. 

Impact on Shareholding Pattern 

The merger will not affect the shareholding pattern of Varun Beverages Limited, as the transaction is between two foreign subsidiaries of the company. The shareholding of the parent company will remain unchanged. 

Varun Beverages Share Price Performance 

As of July 02, 2026, at 3:30 PM, Varun Beverages share price on NSE was closed at ₹510.65, down by 0.98% from the previous closing price. 

Conclusion 

Varun Beverages Limited's announcement of merging its subsidiaries Bevco and Twizza is aimed at operational synergy and cost optimisation. The merger involves no cash consideration or share issuance, with Twizza's share capital set to be cancelled. 

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