PepsiCo’s bottling partner Varun Beverages (VBL) has received approval from the Competition Commission of India (CCI) to acquire the franchise rights of PepsiCo in southern and western India.

The announcement was made by the bottling company in its regulatory filing. CCI approved a proposed acquisition following a meeting that took place on 22 March this year.

“This comes as a welcome force multiplier to our efforts to aggressively expand our beverage business across geographies.”

First announced last month, VBL received approval from its board to enter a binding agreement with PepsiCo India Holdings. At the time of signing, VBL chairman Ravi Jaipuria said: “Our franchising agreement, subject to receipt of necessary statutory approvals, in South and West regions will enable VBL to acquire a national bottling and sales footprint.

“This comes as a welcome force multiplier to our efforts to aggressively expand our beverage business across geographies.”

The proposed acquisition is reported to be in line with the company’s strategy to enhance its footprint and operational productivity.

The transaction enables VBL to become a franchise of PepsiCo beverages business across 27 states and seven union territories in India.

Varun Beverages produces and distributes a range of carbonated soft drinks and non-carbonated beverages, including packaged drinking water sold under trademarks owned by PepsiCo.

The company has been associated with PepsiCo since the 1990s. It recently concluded an acquisition of franchise rights from SMV Group to sell and distribute PepsiCo beverages in the Indian states of Karnataka and Maharashtra.