RJ Corp Ltd., a diversified Indian conglomerate and PepsiCo's second-largest bottler globally (outside the US), is preparing to issue local bonds to raise approximately $105 million (equivalent to ₹750 crore). The company intends to utilize these funds primarily for investments in a solar power company, Sky Power Mena Ltd, Dubai, where it plans to establish a 2.5 gigawatt solar power plant in Africa. This move signifies RJ Corp's strategic diversification beyond its core beverage and food sectors.
This bond issuance follows previous placements of Non-Convertible Debentures (NCDs) totaling ₹990 crore out of a proposed ₹2,100 crore. RJ Corp's financial strength is underpinned by its significant holdings in publicly traded companies such as Varun Beverages Ltd (VBL), Devyani International Ltd (DIL), and Global Health Ltd (GHL). As of April 9, 2026, the market value of these holdings was ₹45,502 crore, providing substantial financial flexibility against its rated debt of ₹2,400 crore and corporate guarantees of ₹515 crore.
CRISIL Ratings has reaffirmed its 'Crisil AAA/Stable' rating on RJ Corp's long-term bank facilities and NCDs, reflecting the company's strong financial flexibility and robust debt coverage. The management has committed to maintaining a debt cover (market value of investments to overall debt including corporate guarantees) of well over 12 times. The company also benefits from steady dividend income from its listed entities, totaling ₹130 crore in fiscal 2026, and interest income from group companies, which will help meet interest payment obligations on the new bonds.
While RJ Corp boasts a strong and diversified business portfolio with partnerships with international brands like Pepsi, Pizza Hut, and KFC, it remains susceptible to market-related risks. A significant decline in the share prices of VBL, DIL, and GHL could impact its financial flexibility. Any substantial debt-funded acquisitions or incremental investments in new businesses could also be a key rating sensitivity factor. However, the company's strong liquidity, with cash and equivalents of ₹210 crore as of April 2026 and an almost fully unutilized working capital limit of ₹300 crore, provides a robust financial cushion.
