Varun Beverages to acquire 50% stake in EIL for $ 3.75 million
The Economic Times: Varun Beverages has announced the acquisition of a 50% stake in Everest Industrial Lanka (Private) Limited (EIL) for a consideration of $ 3.75 million (approximately INR 320.88 million) following the approval of the board of directors.
In an exchange filing, the company stated, “EIL, a company in Sri Lanka, is engaged in the business of production, manufacturing, distribution, and selling of commercial visi-coolers and related accessories.”
This strategic move is expected to enhance Varun Beverages’ supply chain capabilities and expand its footprint in the South Asian market.
OSL take:
The latest acquisition by an Indian business of a Sri Lankan business indicates the increasing interest among foreign businesses/investors to engage with Sri Lanka, especially with regard to Indian businesses/investors. Sri Lanka’s growing economic activities and the expanding economy have attracted many foreign businesses/investors to explore business/investment opportunities in Sri Lanka. The country’s strategic positioning in the Indian Ocean, the strong trade ties enjoyed with many foreign countries and Sri Lanka’s target of becoming a hub in the South Asian region have all given a boost to Sri Lanka as an emerging business destination in the region. The growth and profits recorded by foreign businesses/investors doing business with/in Sri Lanka, especially Indian businesses are indicative of the growing business potential in Sri Lanka and the growing business/investment opportunities in the country. Given all these developments, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka and could also look at doing business in the country by forming partnerships or joint ventures with local businesses.
| Article Code : | VBS/AT/20250522/Z_2 |