PRESIDENT Emmerson Mnangagwa on Thursday commended drinks manufacturer VarunBeverages Zimbabwe (Pvt), Ltd’s for its continued investment into the country.
Varun entered the Zimbabwean market in 2018 through its parent RJ Cola, the biggest bottler of Pepsi outside the United States of America.
Commissioning the fourth and fifth phases of its closures production lines valued at US$ 20 million brings the company’s investment in Zimbabwe to more than $100 million.
“The fact that Varun Beverages Zimbabwe will no longer be importing but manufacturing performs locally is commendable,” President Mnangagwa said. “This aligns with my government’s policy of import-substitution and export development.
“It is my hope that this investment will translate into the production of more affordable goods while at the same time reducing reliance on imports, which saves on the much-needed foreign currency.”
PRESIDENT Emmerson Mnangagwa
The President opened the first phase of the company’s bottling plant in June 2018. He was back again in December of the following year to officially commission the US$20 million second phase of the can manufacturing plant and in October 2021 to operationalise the third phase.
“This is in line with the National Industrial Development Policy’s objectives which are premised on opening up our country for business, modernisation, industrialisation and investment promotion to attain broad-based economic empowerment, inclusive economic growth and employment creation,” added President Mnangagwa.
“Such investment projects as the one we are witnessing today, as well as those by other investors, are quite crucial as they significantly contribute to economic growth and create
employment for our citizens.”
Speaking at the same occasion Chairman of the RJ Corp, Mr Ravi Jaipuria, said the company was committed to Zimbabwe. “We promised His Excellency and the people of Zimbabwe that we would be investing more in Zimbabwe and shall develop the market to ensure our Pepsi products reach every small village and every Zimbabwean should be able to get our products at arm’s length,” said Mr Jaipuria.
“We added four more production lines and four backward integration lines to make it a total of nine production lines with a total capacity of 80 million bottles and cans per month. This
expansion could happen with affordable prices, more consumers, the latest go-to-market systems, investment in the retail infrastructure, and credits extended to the distributors and wholesalers.
“The fourth phase of investment is 550 bottles per minute production line and bottle closure production as a further backward integration effort to reduce the import dependence. The new lines are the state of art production lines and can produce 20 million additional bottled carbonated drinks. The fifth phase of investment is in the state-of-the-art warehouse facility.”
Varun Beverages employs about 2000 people directly and over 5000 indirectly. With its increased capacity, the company aims to increase its regional exports.
“With this new expansion, we will increase our export beverages, preforms, and plastic closures to Zambia, DRC, Botswana, Malawi and other neighbouring countries, bringing sizeable foreign exchange into Zimbabwe,” said Mr Jaipuria.
“All our business ventures are committed to the sustenance of society and the environment. We promise you that no external or internal factors will ever be able to derail us from the path of responsible environ-socio-economic business practices.”
The event was attended by many dignitaries that, included the Indian Ambassador to Zimbabwe, His Excellency Vijay Khanduja, Defence Minister, Honourable Oppah Muchinguri-Kashiri, Industry and Commerce Minister Dr Sekai Nzenza, Dr John Mangwiro, Deputy Minister of Health, Deputy Minister of Youth and Sport, Mr Tino Machakaire, Deputy Minister of Lands, Mr Vangelis Peter Haritatos and Varun Beverages Vice President, Dr Fungai Murahwa who gave opening and closing remarks among other dignitaries.
