Varun Beverages’ shares edged up 0.64%, closing at ₹432.75 on the NSE, after the firm announced that its planned purchase of 100% of Crickley Dairy Proprietary Limited has been sent to arbitration. The move comes as the South African subsidiary, The Beverage Company Proprietary Limited, fails to meet a key condition by the September 30 deadline.
The acquisition was signed on March 17, 2026, valuing Crickley Dairy at an enterprise value of ZAR 238 million, which translates to roughly ₹131.47 cr using the exchange rate disclosed by Varun. The deal aimed to diversify the company’s beverage portfolio into dairy‑based drinks, a new category for the firm.
Varun said the transaction was contingent on regulatory approvals, including clearance from the Competition Commission of South Africa. When the condition precedent was not satisfied, the company referred the dispute to the Arbitration Foundation of Southern Africa, naming Crickley Dairy and Clark Holdings as opposing parties.
Amid the arbitration, Varun’s board has approved the creation of KIVA Spirits and Company Limited, a wholly‑owned subsidiary that will produce ready‑to‑drink alcoholic beverages. The launch of KIVA is subject to separate regulatory approvals, signalling the company’s intent to broaden beyond non‑alcoholic drinks.
Going forward, Varun will need to navigate the arbitration process, which could delay or alter the final purchase price. The company’s next earnings call, scheduled for October 15, will likely address the arbitration outcome and the progress of the KIVA Spirits venture. Investors will be watching closely to see whether the dispute impacts the firm’s valuation and future growth prospects.