Varun Beverages Limited (VBL), a key franchisee of PepsiCo, has completed the acquisition of a 39.93% equity stake in Lunarmech Technologies, making it a wholly-owned subsidiary. The acquisition became effective on December 16, 2024, following regulatory approvals and exchange filings.
VBL acquired the remaining 39.93% of Lunarmech for a transaction value of ₹200 crore, Lunarmech Technologies is into manufacturing plastic closures for PET bottles, a product primarily used in-house by Varun Beverages.
The company currently operates a manufacturing facility in Jaipur and is constructing a second facility in Jammu, boosting its production capacity to meet growing market demands. Lunarmech reported a net revenue of ₹183.4 crore in FY 2023-24.
This acquisition is part of Varun Beverages’ strategy to strengthen operational capabilities and improve production. Alongside this, VBL announced acquisitions in Tanzania and Ghana to expand its global presence. These include:
As of 2 PM today, Varun Beverages’ shares wereare trading at ₹646.65, marking an increase of 1.25 points (0.19%). On a year-to-date basis, the stock has delivered a 30.11% return.
For the recent quarter, VBL reported revenue of ₹3,086 crore, compared to ₹5,801 crore in the previous quarter. The net profit for the period stood at ₹492.34 crore, with earnings per share (EPS) at ₹1.52.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 17, 2024, 3:24 PM IST
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