Varun Beverages to invest ₹4.1 crore in solar captive power

Varun Beverages Limited

approved an investment of up to ₹4.1 crore for a 26% stake in Jager Renewables Private Limited. The company will use it to source solar power for its Uttar Pradesh bottling plants. What happened: The power will come under a group captive model. It is meant for the Gorakhpur and Prayagraj plants. The deal is not a related party transaction. The target completion date is 6 October 2027. In March 2026, the company raised its stake in Jager Renewables Two Private Limited to 49% with a further ₹7.05 crore. That one serves its Rajasthan plants. Why it matters: Bottling runs on refrigeration and blow molding, so power is a real part of operating cost. Group captive solar can fix part of that cost for years. The cash outlay is small next to Q2 CY2026 consolidated revenue of ₹8,451.23 crore, up 20.4% YoY, and net profit of ₹1,525.36 crore, up 15.1%. My view: This copies the Rajasthan approach into a second state. Repeating a model is a sign it worked, but I have no savings figure from the Rajasthan plants to confirm that. The saving per unit of power is also not disclosed for Uttar Pradesh. With a stake of only 26%, VBL puts in little capital and gets a power supply, not a solar asset on its balance sheet. At ₹4.1 crore, this will not move group profit by itself. Its value is cost predictability across more plants over time. Delays in commissioning or a change in state captive rules could cut the benefit. What I am watching: Commissioning before 6 October 2027, and any change in power cost per unit at Gorakhpur and Prayagraj. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.