Standard Chartered Private Equity, a unit of Standard Chartered PLC, has invested $32m (Rs1.68bn) in Varun Beverages International (VBIL), the largest bottler for PepsiCo in South Asia.

VBIL plans to use the funds to buy Pepsi’s minority stake in its subsidiary Varun Beverages Limited (VBL).

Once the deal is completed, the company’s Indian beverage business will be merged with VBIL.

This is a follow-on investment of Standard Chartered Private Equity in VBIL, wherein it had invested $48m (INR2.5bn) in July 2011 to speed up the company’s growth in its beverages business in India and overseas.

VBIL chairman Ravi Jaipuria, commenting on the investment, said: "Broadening of the company’s capital base will enable the company to implement its capital expenditure plans, enhance capacities and penetrate new geographies."

Established in 1995, VBIL is based in Gurgaon, India with additional offices in Sri Lanka, Nepal, Mozambique, Zambia and Morocco.

VBL operates as a subsidiary of RJ Corp, which comprises diversified business interests ranging from beverages, fast food restaurants, ice creams and dairy products, breweries, education, health care and hospitality.

In addition to Varun Beverages, Standard Chartered Private Equity over the last one and half years has invested in Bush Foods, Craftsman Automation, Greenko, GMR Airports, Innoventive Industries, INOX India, Karaikal Port, Privi Organics and Redington.