Skip to main content

Deal Alert: StanChart PE invests $56-M in RJ Corp beverage unit

From the Press Release:

Varun Beverages (International) Limited (VBIL) has concluded a US$56 million private equity financing with Standard Chartered Private Equity Limited (SCPE). The funds would be used to accelerate VBIL’s growth in its beverages business in India and overseas. VBIL is promoted by the RJ Corp group which comprises diversified business interests ranging from beverages, fast food restaurants, ice creams & dairy products, breweries, education, health care and hospitality. VBIL is engaged in the business of bottling, distribution and marketing of soft drink beverages, sold under the trade marks owned by PepsiCo Inc., USA. VBIL, through itself and its subsidiaries, operates in India, Sri Lanka, Nepal and Morocco.

Commenting on the development, Mr Ravi K Jaipuria, Chairman, VBIL, said: "To convert the huge opportunity of growth, penetration and enhanced territories domestically and internationally into reality, we need to build, year after year, large capacities, involving huge capital expenditure. Induction of SCPE in group's core business of beverage shall help grow this business faster. "

Raj Gandhi President and Group (CFO) on the occasion said: "The business model is now totally hedged through operations at multiple geographies and induction of SCPE provides new opportunity to leverage the financials, expand at much faster pace and bring economies of scale."

Nainesh Jaisingh, Managing Director and Global Co-Head of SCPE said “We are extremely pleased to partner with the RJ Corp Group. The Group is a long standing client of Standard Chartered Bank and there exists significant overlap between our geographic footprints. With Pepsi’s backing, VBIL is already a leader in the beverage market, and we look forward to a long term association with the Group and the Company.”

Udai Dhawan, Director at SCPE who will be joining the VBIL Board said “The current low per capita consumption of soft drinks in India offers tremendous opportunity for VBIL. With over four decades of experience in the beverage business, a demonstrated track record and a highly experienced management team, the Company is uniquely positioned to capture this opportunity. The Company’s growth may further be aided through inorganic means. We are very excited to be a part of the Company’s next stage of expansion”.

The beverages operations were first started by the group in the 1960s and are growing rapidly after collaborating with Pepsico since their entry into India in 1991.

Other RJ Corp Busineses
The group's fastest growing multiple format restaurant business company Devyani International Ltd. partners international brands like Pizza Huts, KFC and Costa Coffee. Outside of India, it has presence in Nepal and Nigeria.

The group's Cream Bell ice cream operations are no more limited to only India or to a single product. It has its presence in Uganda and Kenya and operates into a complete range of dairy products. It recently started its third manufacturing facility to increase its capacity by 50 per cent at Kosi in Uttar Pradesh, after Baddi in Himachal and Goa. Its ice cream brand Cream Bell has won many awards for its quality and has a large range of exotic products.

The group's JV with ABInbev to brew beer is also spreading its presence in all the large beer consuming States through its brewing facilities at Hyderabad, Bangalore, Pune. It has ever-growing stem cells banking facility covering stem cells banking through-out India.

About Standard Chartered

Standard Chartered Private Equity Limited (SCPE) is the private equity arm of Standard Chartered Bank and has invested over US $ 2 billion in mid to late stage companies in need of expansion capital or acquisition finance and in management buy-outs.

Standard Chartered Bank is India’s largest international bank with 94 branches in 37 cities, a combined customer base of around 2 million retail customers and more than 2,000 corporate and institutional relationships. Key businesses comprise Consumer Banking, including deposits, loans, wealth management, private banking and SME banking; and Wholesale Banking, which includes cash transaction banking, treasury, corporate finance and custody services. For more information, visit www.standardchartered.co.in

Popular posts from this blog

Avendus tops League Table for Transaction Advisors to PE deals in H1'24

Citi and Ambit claim the No.2&3 slots Avendus topped the Venture Intelligence League Table for Transaction Advisor to Private Equity Transactions in H1’2024 advising 12 deals worth $2.4 Billion. Citi stood second, having advised 1 deal worth $2 Billion. Ambit followed with 7 deals worth $797 million. Kotak Mahindra Capital ($735 million across 2 deals) and Ernst & Young ($657 million across 7 deals) completed the top five for H1’ 2024. The  Venture Intelligence League Tables , the first such initiative exclusively tracking transactions involving India-based companies, are based on the value of PE and M&A transactions advised by Financial and Legal Advisory firms. Among the larger deals in the latest quarter, Citi, KPMG , Ernst & Young advised $2 Billion acquisition of the Indian business of American Tower Corporation by Brookfield . Avendus, Ernst & Young, JM Financial, Barclays and KPMG advised $ 554 million acquisition of Shriram Housing Finance by Warb...

Citi tops League Table for Transaction Advisors to M&A deals in H1'24

  Ernst & Young and Avendus claim the No.2 & No.3 slots Citi , which advised the  $2 Billion acquisition of the Indian business of American Tower Corporation by Brookfield,  topped the Venture Intelligence League Table for Transaction Advisors to M&A Deals   during H1 2024. Ernst & Young stood second advising 8 deals worth $1.5 billion. Avendus followed with 7 deals worth $1.2 billion. KPMG ($1.1 billion across 5 deals) and JM Financial ($900 million across 4 deals) completed the top five. The  Venture Intelligence League Tables , the first such initiative exclusively tracking transactions involving India-based companies, are based on the value of PE and M&A transactions advised by Financial and Legal Advisory firms. Among the other larger M&A deals in H1 2024 (other than the  ATC-Brookfield deal) , Ernst & Young, KPMG and Deloitte advised $1.1 Billion acquisition in PNC Infratech 12 Road Projects by Highways Infrastructure Tr...

AZB tops League Table for Legal Advisors to PE deals in H1’24

Trilegal and Khaitan & Co. claim the No.2 & No.3 slots AZB & Partners (AZB) topped the Venture Intelligence League Table for Legal Advisor to Private Equity Transactions in H1 2024 advising 41 deals worth $5.4 Billion. It was followed by Trilegal ($5.1 Billion across 54 deals) and Khaitan & Co. (4.8 Billion across 46 deals) in the second and third spot respectively. Cyril Amarchand Mangaldas (CAM) ($2.9 Billion across 34 deals) and Talwar Thakore & Associates ($2.4 Billion across 9 deals) completed the top five. Among the larger Private Equity deals during H1’2024, Khaitan & Co., Talwar Thakore & Associates, S&R Associates ,and Trilegal a dvised the $2 Billion acquisition of the Indian business of American Tower Corporation by Brookfield which was the largest PE-VC investment in 2024 . AZB advised the $900 Million acquisition of Altimetrik by TPG Capital and the $840 Million acquisition of Healthium Medtech by KKR . Resolut Partners , Khaitan & ...

AZB & Partners tops League Table for Legal Advisors to M&A deals in H1’24

Khaitan & Co. and J Sagar Associates claim the No.2 & No.3 slots AZB & Partners topped the Venture Intelligence League Table for Legal Advisor to M&A Transactions during H1 2024 advising 37 deals worth $14.8 Billion. It was followed by Khaitan & Co. ($12.8 Billion across 32 deals) and J Sagar Associates (JSA) ($9.8 Billion across 13 deals). Cyril Amarchand Mangaldas (CAM) ($6.2 Billion across 38 deals) and Trilegal ($4.8 Billion across 20 deals) completed the top five. Among the largest M&A deals during H1 2024, AZB, JSA and Khaitan & Co. advised $8.5 Billion acquisition of Disney Hotstar by Reliance Jio . S&R Associates , Talwar Thakore & Associates (TTA), Khaitan & Co. and Trilegal advised the $2 Billion buyout deal   of  ATC India by Canadian infrastructure investor Brookfield Asset Management . CAM advised the $1.3 Billion in the acquisition of a  further  stake in Ambuja Cement  by Adani Enterprises . Among fo...

VC Interview: Shailendra Singh of Sequoia Capital India

In a recent interview to Venture Intelligence, Shailendra Singh discussed some of the firm’s newer investments in the early stage segment including in the online payments space, the progress at a few existing portfolio companies and the active role the firm is playing in helping its portfolio companies scale and succeed in India and globally. Prior to joining the firm in 2006, Singh was a strategy consultant at Bain & Company in New York and before that, an entrepreneur in the digital media industry. Venture Intelligence: How does Sequoia go about identifying potential early stage investments in India? Is there anything different you are doing today than, say, a couple of years back? Shailendra Singh: There is a lot more focus on technology investing and early stage investing. In general, as you might remember a few years ago, we were doing primarily growth investing but in the past 18-odd months, we have had a very strong focus on early stage and that’s continuing. In terms...