Varun Beverages Ltd (VBL), the leading bottling partner of PepsiCo, on Monday said its two subsidiaries plan to enter into an agreement with the food and beverage major to manufacture, distribute, and sell the snacks brand ‘Simba Munchiez’ in Zimbabwe and Zambia.
In a BSE filing, it said it plans to set up manufacturing units in Zimbabwe and Zambia with an investment of $7 million (around ₹60 crore).
“VBL, through its subsidiaries - VFZ Varun Foods (Zimbabwe) Pvt Ltd (VFZ) and Varun Beverages (Zambia) Ltd (VBZ), has discussed with PepsiCo to enter into an exclusive snacks franchising appointment with Premier Nutrition Trading LLC, Dubai (a PepsiCo Inc subsidiary) to manufacture, distribute, and sell “Simba Munchiez” in the territory of Zimbabwe & Zambia,” it said in the BSE filing.
“As per the understanding, an estimated investment in the manufacturing facility would be around $7 million (around ₹60 crore) for an annual capacity of about 5,000 MT for manufacturing of Simba Munchiez in multiple SKUs at each location in Zimbabwe and Zambia,” it added. It further added that this appointment will be done on or before October 1, 2025, for Zimbabwe and April 1, 2026, for Zambia, once the respective manufacturing facilities come into operation.
“VBL subsidiaries will leverage their distribution prowess to introduce the new affordable range of snacks products from the house of PepsiCo. PepsiCo will give a strong push in certain fast-moving SKUs through price initiatives,” it said.