AION puts ~600 cr in Varun Beverages

Singapore’s AION Investments is investing~600 crore in RaviJaipuria-led Varun Beverages (VBL), largest bottler of Pepsi Coin India. VBL would get ~300 crore, which it would use for rejigging debt and expansion, in exchange for non-convertible debentures issued to AION. AION would invest the rest for acquiring compulsorily convertible debentures from existing investors of VBL.

Singapore-based Aion Investments is investing ~600 crore in Ravi Jaipuria (RJ)-led Varun Beverages Ltd (VBL), the largest bottler of beverages major PepsiCo in India. As a part of its investments, VBL will receive ~300 crore, which the bottler will use in refinancing its existing debt and expansion of its operations, in exchange of non-convertible debentures to Aion. Aion will invest the rest for acquiring compulsorily convertible debentures from the existing investors of VBL.

“Aion is extremely pleased to partner the RJ Corp Group, which has over four decades of experience in the Indian consumer sector. This is reflected in VBL’s strong record of growth that has made it the largest franchisee bottler in India,” Parth Gandhi, managing director at Aion said.

“We will be using the money for acquisitions and expansion of our current facilities”, Raj Gandhi, president and chief financial officer, VBL, said. VBL, which currently operates some 22 bottling plants, including co-packers in India and abroad, expects to touch ~4,000 crore in revenues by the end of 2015. “We have already achieved 90 per cent of our target by September,” Gandhi from VBL added.

VBL bottles, distributes and sells soft drink beverages such as Pepsi, 7UP, Mirinda and Mountain Dew in 13 states in the country, apart from Sri Lanka, Nepal and Morocco.