Pepsico bottler Varun Beverages after market hours in Wednesday’s trade (April 10) announced that it will buy a stake in Huoban Energy 11 and Aspirative Creative Ventures. 

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The company in its release with the exchanges said,” t the Investment and Borrowing Committee of the Board of Directors of Varun Beverages Limited at its meeting held today considered and approved the following: 

(i) To invest upto 14% of Equity Share Capital of Huoban Energy 11 Private Limited, a special purpose vehicle inter-alia engaged to supply solar power to consumers in the state of Maharashtra. 

(ii) To invest upto 14% of Equity Share Capital of Aspirative Creative Ventures Private Limited, a special purpose vehicle inter-alia engaged to supply solar power to consumers in the state of Uttar Pradesh.

Huoban Energy 11 Private Limited is a special purpose vehicle incorporated on March 31, 2022 under the group captive model envisaged under the Electricity Act, 2003 to supply solar power to consumers in the state of Maharashtra. The Company is yet to begin its operations. 

Varun Beverages through the acquisition intends to obtain solar power (generation and supply) from the Company for its facility located in Supa Parner, Sakri, District Dhule, Maharashtra. Solar power is environment friendly and will also reduce the power cost at the said facilities, the company’s filing added.

The deal with the company is expected to be completed on or before October 9, 2024 at a cash consideration of Rs 2.9 crore.

Accordingly, as per the Electricity Act, the company being the captive user, is required to invest in the Company.

Likewise, the company will be acquiring a stake in Aspirative Creative Ventures for Rs 2.24 crore.

Varun Beverages is a largecap company commanding a m-cap of  Rs1,84,987.72 crore. The company is a franchisee bottler of carbonated soft drinks and non-carbonated beverages sold under trademarks owned by PepsiCo. The Company produces and distributes products, such as Pepsi, Diet Pepsi and Seven-Up.