PepsiCo plans $5.5B investment in India by 2020

Beverage and food products giant PepsiCo Inc, along with its local partners, plans to invest Rs 33,000 crore ($5.5 billion) in India by 2020 as it seeks to ramp up its game in the country, according to a company statement.

Besides its own operations, PepsiCo also counts large firms such as Ravi Jaipuria-controlled RJ Corp as a significant local partner. RJ Corp is one of its top bottlers in the country.

Indra Nooyi-led firm will invest in product innovation, manufacturing units, sales & distribution infrastructure besides supporting agricultural suppliers.

PepsiCo chairman and chief executive officer of Indian origin, Indra Nooyi, said that India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo.

“We have built a highly successful business in India over many years, and we believe we have only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners. This investment is PepsiCo's vote of confidence in India's future and it represents our deep commitment to this great country," she said.

PepsiCo India operates through a slew of brands such as Pepsi, Lay's, Kurkure, 7UP, Slice, Mirinda, Mountain Dew and Aquafina which has retail sales of over Rs 1,000 crore.

With this investment, PepsiCo plans to significantly increase manufacturing capacity in India to meet the growing demand for its foods and beverages. PepsiCo and its partners plan to expand their production capacity in India to more than double current levels by 2020.

For infrastructure, PepsiCo and its partners plan to ramp up selling and delivery infrastructure with a particular focus on rural market expansion. The company will be providing farmers with access to seeds, technical agronomic expertise, bank loans and crop insurance. This programme currently reaches 24,000 farmers.

In addition, as part of this initiative, PepsiCo and its partners plan to implement technologies to further reduce energy, packaging and water use in their operations. PepsiCo also intends to expand water recharge programmes to sustain water balance.

Since opening its first operations in India in 1990, PepsiCo is estimated to have created opportunities for more than 200,000 people in the country through direct or indirect employment and agricultural collaborations. It estimated that the strategic initiative announced on Monday will add more than 100,000 employment opportunities, as well as strengthen India as a centre of talent development for PepsiCo.

PepsiCo’s latest announcement comes a year after its key global rival Coca-Cola said it will invest $5 billion in the country along with its own local partners.

(Edited by Joby Puthuparampil Johnson)

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