Aion invests Rs 600 cr in Varun Beverages

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Aion Capital, joint venture between Apollo Global Management and ICICI Venture, has invested Rs 600 crore in Ravi Jaipuria promoted Varun Beverages which is the largest franchisee bottler in the country.

Varun Beverages bottles, distributes and markets soft drink for PepsiCo in India. The investment includes both primary and secondary purchase from existing investors. 

“RJ Corp Group has over four decades of experience in the Indian consumer industry. This is reflected in VBL’s strong track record of growth that has made it the largest franchisee bottler in India,” says Parth Gandhi, managing director at Aion.

Aion’s primary investment of Rs 300 crore is in the form of non-convertible-debentures (NCDs). Proceeds of these debentures will be used by VBL for refinancing existing debt and to accelerate growth. In addition to this, Aion also acquired compulsorily convertible debentures from existing investors for Rs. 300 crore.

Ravi K Jaipuria, chairman of Varun Beverages said, “Aion’s investment will enable VBL to further accelerate its growth plans.” Aion has now become the largest external investor in Varun Beverages, the flagship company of the RJ Corp Group.