On March 22, 2019, CCI approved the acquisition of 9 manufacturing plants and franchise rights for 7 States and 5 Union Territories of PepsiCo India Holdings Private Limited (‘PepsiCo.’) by Varun Beverages Limited (‘VBL’) on a slump sale basis (‘Proposed Combination’). The Proposed Combination is pursuant to a Business Transfer Agreement executed between VBL, PepsiCo. and RJ Corp. Limited (‘RJ Corp.’). [1]

VBL is a subsidiary of RJ Corp. and a franchise of PepsiCo. VBL manufactures, distributes, markets and sells beverage products of PepsiCo under brands licensed by PepsiCo. PepsiCo. is a subsidiary of PepsiCo. Inc. and is in the business of marketing, manufacturing, distributing and selling of carbonated beverages, concentrate syrup mix and food products. PepsiCo. has its own bottling facilities in certain territories in India.

CCI noted that VBL and PepsiCo. are not competitors in any market in India and further noted that the proposed transaction was merely an expansion of VBL’s bottling activities for PepsiCo to territories which were earlier operated by PepsiCo. Accordingly, CCI approved the proposed transaction unconditionally.[1] Combination Registration No. C-2019/02/645.