Archive · 23 Dec 2025
Varun Beverages Expands to Africa with Twizza Acquisition
Varun Beverages, a big drinks company in India, is buying Twizza, a company in South Africa that makes non-alcoholic drinks.
This is not just about making more money right now, but about growing in the future.
Africa's market is big, but it might take time to see big profits.
Twizza's market is already quite big, but it's not growing very fast.
Varun Beverages thinks they can make Twizza grow faster and take a bigger share of the market.
They are also trying to sell beer in some parts of Africa, which is a new thing for them.
The company's stock has gone down this year because of some problems in India and other countries, but they are hoping that growing in Africa will help them in the long run.
Varun Beverages Ltd (VBL) acquires South Africa-based Twizza for ₹1,120 crore to extend growth beyond India.
Twizza operates in a mature ready-to-drink market, with VBL aiming to double its market share in South Africa by 2027.
VBL's realizations in South Africa are about 50% lower than Coca-Cola Beverages Africa, offering potential upside.
Twizza's sales have grown at a CAGR of 4% over the last three years, with better EBITDA margins than VBL's South African subsidiary.
VBL's stock has declined 25% year-to-date due to margin normalization concerns and rising competition in India.
- Who
- Varun Beverages Ltd (VBL) and Twizza (Pty)
- What
- Acquisition of Twizza by VBL
- When
- Not specified
- Where
- South Africa
- Why
- To extend growth beyond India and gain market share in Africa
- Acquisition Target
- Twizza (Pty)
- Acquisition Cost
- ₹1,120 crore
- EV/Sales Multiple
- 1.24x (FY25)
- EV/EBITDA Multiple
- 7-8x (FY25)
- Current Market Share in South Africa
- 10%
- Expected Market Share by 2027
- 20%
- Twizza's Volume Growth
- 3% CAGR
- VBL's Consolidated EBITDA Margin
- 23%