Aion invests Rs 600 crore in Varun Beverages
10 October 2015
India-focused fund Aion Capital Partners Ltd (ACPL) has invested Rs600 crore in New Delhi-based Varun Beverages Ltd (VBL) by way of primary infusion and secondary purchase.
Varun Beverages is the flagship company of the group og the RK Jaipuria Group. It was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages.
The investment was made through AION Investments II Singapore Pte Ltd, a fund managed by the Aion. VBL is a manufacturer of beverages in India and certain international markets, the company said in a statement.
A primary investment of Rs300 crore was made through non-convertible debentures (NCDs), while Aion also acquired compulsorily convertible debentures (CCDs) worth Rs300 crore from existing investors.
"I am delighted to extend a warm welcome to Aion, which now becomes the largest external investor in Varun Beverages Limited, the flagship company of the RJ Corp Group. Aion's investment will enable VBL to further accelerate its growth plans," VBL Chairman Ravi K. Jaipuria said
The company would use the proceeds from the NCDs to refinance its debt and to accelerate growth.
Parth Gandhi, managing director at AION said, ''Aion is extremely pleased to partner with the RJ Corp Group, which has over four decades of experience in the Indian consumer industry. This is reflected in VBL's strong track record of growth that has made it the largest franchisee bottler in India".
ACPL is an India-focused fund that was set up a subsidiary of Apollo Global Management, along with ICICI Venture Funds Management Co.
VBL, a subsidiary of New Delhi-based RJ Group with businesses in beverages, fast food restaurants and healthcare among others, bottles and markets soft drinks sold under the trademarks owned by PepsiCo.