BL Industries Kenya, a subsidiary of Varun Beverages, has signed an agreement to acquire the dairy beverages, fruit juices and packaged drinking water business of Devyani Food Industries Kenya in a deal expected to be completed by August 1, 2026.
The acquisition will give Varun Beverages ownership of a 52-acre manufacturing facility in Nakuru, Kenya, equipped with modern production machinery, advanced water purification systems, internationally recognised food safety certifications and more than 17,500 square metres of built-up factory space.
The $32 million investment strengthens the African expansion strategy of Varun Beverages and positions its chairman, Ravi Jaipuria, among leading investors increasing their presence in Kenya’s growing industrial and consumer sectors.
The move follows the company’s recent extension of its long-term bottling partnership with PepsiCo, which now runs until April 2049. The renewed agreement also removes previous restrictions that limited Varun Beverages from pursuing non-PepsiCo business ventures while producing several of PepsiCo’s beverage brands.
Kenya’s beverage market is becoming increasingly competitive as both international companies and regional manufacturers expand operations to attract consumers in a market traditionally dominated by Coca-Cola.
Alongside Varun Beverages’ investment, Tanzanian business group MeTL Group is constructing a $50 million beverage factory in Mombasa to manufacture products including Mo Cola, while PepsiCo already has an existing production base in Kenya through another independent bottling partner.
The acquisition also provides Varun Beverages with a strategic entry into East Africa after previous attempts to acquire larger PepsiCo bottling operations in Tanzania and Ghana failed due to regulatory and transaction-related challenges.
The company has continued to expand across Africa through acquisitions and new investments. In recent years, it acquired PepsiCo’s South African bottler, Bevco, strengthened its presence through the acquisition of beverage producer Twizza, and is currently developing new bottling plants in Kinshasa and Lubumbashi in the Democratic Republic of Congo.
The latest investment further reinforces Kenya’s growing reputation as one of Africa’s leading destinations for manufacturing and consumer goods investment.
