Varun Beverages Ltd (VBL) has approved an investment of up to Rs 4.10 Cr to acquire a 26% stake in Jager Renewables Pvt Ltd, as the PepsiCo bottler looks to increase its use of solar power and reduce electricity costs at its facilities in Uttar Pradesh.
The company's Investment and Borrowing Committee approved the investment on October 7, 2026. The move will allow VBL to source renewable electricity for captive consumption at its existing and future facilities in the state.
Solar Power for VBL's Uttar Pradesh Plants
Jager Renewables is a special purpose vehicle (SPV) incorporated in September 2020 under the group captive model.
The company has been set up to generate and supply solar power to consumers in Uttar Pradesh, although it has not started operations yet.
Varun Beverages plans to use the solar power generated by Jager Renewables at its facilities in Gorakhpur and Prayagraj. The arrangement will also cover any new VBL facility that may come up in Uttar Pradesh.
For VBL, the move is expected to provide two benefits — greater use of cleaner energy and lower electricity costs over time.
Rs 4.10 Crore Investment
Varun Beverages will invest up to Rs 4.10 Cr in cash, which may be paid in one or more tranches.
Once the investment is completed, VBL will hold up to 26% of Jager Renewables' equity share capital.
The transaction is expected to be completed on or before October 6, 2027.
The company has also said that no government or regulatory approval is required for the proposed investment.
Why Solar Power Matters for VBL
Power is an important operating cost for large manufacturing facilities. By securing electricity through a captive renewable energy arrangement, VBL aims to manage its power expenses while increasing the share of solar energy used at its plants.
The company said solar power is environmentally friendly and the investment will help reduce electricity costs at its Uttar Pradesh operations.
The investment is also linked to the group captive model, under which VBL needs to hold the required stake as a captive consumer under the Electricity Act.
No Related-Party Transaction
VBL has clarified that the proposed investment does not qualify as a related-party transaction.
The company's promoter, promoter group and other group companies do not have any interest in Jager Renewables, apart from VBL's proposed investment.
The move is part of VBL's broader effort to secure renewable electricity while improving the cost efficiency of its operations.
Key Numbers
- Rs 4.10 Cr maximum investment by Varun Beverages
- 26% maximum stake VBL will acquire in Jager Renewables
- October 6, 2027 - expected completion deadline
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