Varum Beverages has officially launched its US$ 20 million plastic and bottle closure production line at its Ardbennie manufacturing plant in Harare expected to massively cut the company’s import bill.
Varum is the second largest franchise in the world and locally produces respectable brands such as Pepsi, Mountain Dew, 7Up and Mirinda among others.
The group has been importing preforms and plastic closures which were costing 10 US cents per piece.
President Emmerson Mnangagwa commissioned the plant this morning.
“Such investment projects as well as these by other investors are crucial for our economic growth and employment for our citizens,” said President Mnangagwa.
“It also highlights the confidence which Varum Beverages and other investors have in the progressive policies and conducive business operating environment being fostered by the Second Republic.”
Varum Beverages is among the first investors to heed President Mnangagwa’s open for business call when it set up plant in 2018 less than a year since his ascension to power.
According to the CZI manufacturing sector report for 2022, the company invested US$ 101 million and expanded its capacity by 30 percent.
This new plant, which is the 4th phase of investment by the company, is a 550 bottle per minute production line and bottle closure which will produce 20 million additional bottled carbonated drinks while its 5th phase consists of a state-of-the-art warehouse facility.
The development is expected to see the company able to export beverages, preforms and plastic closures to Zambia, DRC, Botswana, Malawi and other regional countries.
Speaking at the launch, group chairman Ravi Jaipuria said this company is set to diversify its product offering.
“With the future revenue and profits generated from the sale of carbonated drinks we are already looking at avenues of reinvestment like juices, dairy, education, healthcare and hospitality hence further supporting the Zimbabwean community,” said Jaipuria.
Varum Beverages employs about 2000 people directly and another 5000 indirectly in Zimbabwe. It plans to add 4000 vending trollies on top of the 3000 it has so far issued to empower communities.
