PepsiCo announces Rs 33,000 crore mega investment plan for India

Global beverages and snacks major PepsiCo has announced that it will invest Rs 33,000 crore in India by 2020, one of its single largest investments in the country, to to more than double the capacity of the business here.

The company, which has so far invested $2 billion in India since its entry in 1989, said the proposed investment will strengthen its capability in various strategic areas, including innovation, manufacturing, infrastructure and agriculture.

"The Rs 33,000 crore investment, which we are making is going to cover both food and beverages and over the next seven years we will more than double the capacity of our business," PepsiCo Chairman and CEO Indra Nooyi said.

PepsiCo's announcement comes more than a year after its arch rival Coca Cola had said it, along with partners, would invest $5 billion in India by 2020 on various activities, including setting up of new bottling plants.

India has been one of the top five markets of PepsiCo and it has eight brands which clock turnover of over Rs 1,000 crore in the market.

The company has 42 plants across India, including franchises, and apart from cold drinks like Pepsi, 7UP, Mirinda and Mountain Dew, it sells snacks under Lehar, Uncle Chipps and Kurkure brands, among others.

"India is a country with huge potential and it remains an attractive high priority market for PepsiCo. We believe we have only scratched the surface of long-term growth opportunities that exist for PepsiCo and our partners," Nooyi said.

While she did not elaborate on new manufacturing units that may come up, Nooyi said the investments will also cover building all the infrastructure in the supply chain, which goes with doubling its business, including sourcing of fruits, potatoes, oats and oranges.

"We have product portfolio and innovation pipeline around the world that is fantastic in food and beverages and snacks and our goal is to put in the pipeline, put in the infrastructure, built the supply chains and we can start bringing all those products to market here," she said.

Elaborating further, Nooyi said: "The reason we are making investment in India is because we believe India is a terrific growth story and PepsiCo has a great business in India. We believe that the story is still unfolding and we want to grow in India, with India, for India and this investment showcases our confidence in India and its growth prospects."

When asked about the upcoming elections in India and its implications on the investment climate in the country, she said: "We are not guided by elections. We are guided by potential of India. We are not waiting for any election results to invest in India. We are investing in India for its economic story."