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

PE-VC investments in Q2'23 decline 33% to $9.9 Billion

Private Equity-Venture Capital (PE-VC) investments in India during the quarter ended June 2023 (Q2'23), at $9.85 Billion across 182 deals, registered a 33% decrease compared to the same period in 2022 (which saw $14.6 Billion being invested across 371 deals). The investment amount however rose 74% compared to the immediate previous quarter (which saw $5.7 Billion being invested across 181 deals), shows data from  Venture Intelligence , a research service focused on private company financials, transactions, and their valuations. The PE-VC investment figures for the first 6 months of 2023 - at $15.5 Billion (across 363 deals) - was 50% lower compared to the same period in 2022 (which saw $31 Billion being invested across 800 deals). Q2’23 witnessed 19 mega deals ($100 M+

Chiratae, Speciale and Stride Ventures win APEX'24 Venture Capital Awards

Chiratae Ventures, Speciale Invest and Stride Ventures were awarded as among the leading Venture Capital investors in India for 2023 as part of Venture Intelligence APEX‘24 Private Equity & Venture Capital awards event in Mumbai.  The Venture Intelligence “Awards for Private Equity Excellence” (APEX) is dedicated to celebrating the best that the Indian Private Equity & Venture Capital industry has to offer. The APEX Awardees are selected based on both Self Nomination by the participating PE-VC firms and "crowd sourced" voting from the Limited Partner, PE-VC and advisory communities. (The main criteria are Return Track Record, New Fund Raises & Follow-on Funding Rounds for Portfolio Companies) VC Investor of the Year Chiratae Ventures received the Venture Capital Investor of the Year 2023 Award on the back of 10 part exits totaling $178 million via Secondary Sales during the year. Its exits included those from retail unicorn Lenskart, SaaS Startup Pixis and baby pr

Blackstone, MO Alts and InvAscent win APEX'24 Private Equity Awards

Press Release Blackstone, MO Alternates (formerly Motilal Oswal PE) and InvAscent were awarded as among the leading Private Equity and Growth Capital investors in India for 2023 as part of Venture Intelligence APEX‘24 Private Equity & Venture Capital awards event in Mumbai.  The Venture Intelligence “Awards for Private Equity Excellence” (APEX) is dedicated to celebrating the best that the Indian Private Equity & Venture Capital industry has to offer. The APEX Awardees are selected based on both Self Nomination by the participating PE-VC firms and "crowd sourced" voting from the Limited Partner, PE-VC and advisory communities. (The main criteria are Return Track Record, New Fund Raises & Follow-on Funding Rounds for Portfolio Companies) PE Investor of the Year Blackstone received the Private Equity Investor of the Year 2023 Award on the back of strong complete exits during the year: from Sona Comstar and IBS Software. Ganesh Mani and Amit Dalmia, Senior Managing D

Avendus tops League Table for Transaction Advisors to PE deals in Q1'23

Aeka Advisors and Ambit claim the No.2 & 3 slot Avendus topped the Venture Intelligence League Table for Transaction Advisor to Private Equity Transactions for Q1 2023 advising 5 deals worth $808 million. Aeka Advisors stood second having advised 3 deals worth $228 million. Ambit followed with 4 deals worth $160 million. Ernst & Young ($114 million across 4 deals) and o3 Capital ($80 million across 2 deals) completed the top five for Q1 2023. Avendus acted as advisor to ADIA’s $500 million investment in omnichannel eyewear retailer Lenskart . Aeka Advisors acted as advisor to Kreditbee’s $160 million fundraise from Advent International, Mitsubishi UFJ Financial Group (MUFG) and existing investors. Ambit advised the $104 million fundraise of Freshtohome from Mount Judi Ventures, Iron Pillar, Amazon and others. The  Venture Intelligence League Tables , the first such initiative exclusively tracking transactions involving India-based companies, are based on the value of PE

PE-VC investments fall 38% in 2023 to below $30 B

The value of investments by Private Equity - Venture Capital (PE-VC) firms in India fell by 38% to less than $30 Billion in 2023. PE-VC firms invested $29.7 Billion (across 756 deals) in Indian companies in 2023, compared to $47.6 Billion (across 1,362 deals) in the previous year, reports Venture Intelligenc e, a research service focused on private company financials, transactions, and their valuations. (Note: These figures exclude PE investments in Real Estate).                                                                                                                                                                      2023 witnessed 67 mega deals ($100 M+ rounds) worth $21.2 Billion, compared to 112 such investments worth $31.8 Billion in 2022. The $2.4 Billion investment in Manipal Hospitals by Temasek (which gained majority control) and TPG Capital was the largest PE-VC investment in 2023. This was followed by the $1.35 Billion buyout of education loans focused HDFC Credila