India: PepsiCo divests bottling operations in North India
PepsiCo has divested its company-owned bottling operations in North India to its franchisee bottling partner Varum Beverages.
According to a report in the Economic Times, the move forms part of a battle for market share in India with fierce rival Coca Cola.
Chairman and CEO at PepsiCo India D Shivakumar is reported as commenting: "We are expanding our partnership with a strategic partner who understands the local market and has continually demonstrated the ability to drive synergies and deliver strong market execution".
The deal will see four plants and two co-packing units, employing over 900 staff between them and spread across Uttar Pradesh, Haryana, Chandigarh, Uttaranchal, Himachal Pradesh and Punjab, transferred to Varum Beverages.
As a result of the acquisition, Varun Beverages will own 13 PepsiCo bottling plants including those in Delhi which it acquired last year, Uttar Pradesh, Rajasthan, the northeast and Goa.
The financial terms of the deal were not disclosed.
Source: Economic Times