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Tuesday, July 19, 2011

Stan Chart PE buys RJ Corp arm stake

New Delhi: Standard Chartered Private Equity on Tuesday said it has invested $56 million (about Rs 250 crore) in Ravi Jaipuria-promoted Varun Beverages International (VBIL), acquiring a “significant minority” stake in the bottling firm.

“VBIL has concluded a $56 million private equity financing with Standard Chartered Private Equity (SCPE). The funds would be used to accelerate VBIL's growth in its beverages business in India and overseas,” a joint statement by both the firms said.

VBIL, a part of RJ Corp, is the bottling and distribution partner of PepsiCo Inc in India, Sri Lanka, Nepal and Morocco.

The company has not disclosed how much the PE firm has acquired in VBIL. SCPE has denied reports that it has acquired five per cent stake in the RJ Corp firm but said it has “acquired a significant minority stake” in the company.

“To convert the huge opportunity of growth, penetration and enhanced territories domestically and internationally into reality, we need to build, year after year, large capacities, involving huge capital expenditure,” VBIL Chairman Ravi K Jaipuria said.

Induction of SCPE in group's core business of beverage shall help grow this business faster, he added. RJ Corp group is a diversified business conglomerate having interest in beverages, fast food restaurants, ice creams and dairy products, breweries, education, health care and hospitality.

The group is a long standing client of Standard Chartered Bank and there exists significant overlap between our geographic footprints. We look forward to a long term association with the Group and the Company,” SCPE Managing

Director and Global Co-Head Nainesh Jaisingh said.

SCPE is the private equity arm of Standard Chartered Bank and has invested over $2 billion in mid to late stage companies, the statement said.

Source: Financial Express


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