Varun Beverages Ltd to set up units for PepsiCo snacks in Zimbabwe, Zambia
Varun Beverages (VBL), PepsiCo's bottling franchise partner, will set up manufacturing units in Zimbabwe and Zambia with an investment of $7 million (close to ₹60 crore), the company said in a regulatory filing on Monday.
VBL said two of its subsidiaries plan to enter into an agreement with PepsiCo to manufacture, distribute and sell snacks brand Simba Munchiez in Zimbabwe and Zambia.
These subsidiaries are VFZ Varun Foods (Zimbabwe) (VFZ) and Varun Beverages (Zambia) (VBZ).
VBL has discussed with PepsiCo about entering into an exclusive snacks franchising appointment with Premier Nutrition Trading, Dubai (a PepsiCo subsidiary) to manufacture, distribute and sell Simba Munchiez in the territories of Zimbabwe and Zambia, according to the filing.
«As per the understanding, an estimated investment in the manufacturing facility would be around $7 million (around ₹60 crore) for an annual capacity of 5,000 MT for manufacturing of Simba Munchiez in multiple stock keeping units at each location of Zimbabwe and Zambia,» the filing said.
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