US-based food and beverage giant PepsiCo has announced a R33,000-crore ($5.5-billion) investment in India by 2020 in order to double its manufacturing capacity, expand retail distribution, fund country-specific product innovation and increase collaborations with local farmers.
We believe that India is a long-term terrific growth story and PepsiCo has great business in India and this story is still unfolding. We want to grow and this investment shows our confidence in India. This will be mostly organic expansion India is a market for the future. For the long-term, India has the demographic dividend, democracy, it has entrepreneurial environment and a functioning government, PepsiCo chairman and CEO Indra Nooyi told reporters in New Delhi outside the finance ministry.
She added, We are not guided by elections, we are guided by potential of India. We are not waiting for any election results to invest. We fundamentally believe in India's economic story. Nobody likes currency volatility, we learnt to manage it. We are a large company operating in 200 countries and that gives us a natural hedge.
India currently represents one of PepsiCos largest markets globally, the company said. So the R33,000-crore investment will help the company in expanding its range of foods and beverages to cater to the wide and evolving needs of Indian consumers. PepsiCo has has organically built eight brands in India, including Kurkure, 7UP, Slice, Mirinda, Mountain Dew and Aquafina, that generate about R1,000 crore in estimated annual retail sales.
PepsiCo and its partners also plan to expand their production capacity in India to more than double current levels by 2020, while ramping up selling and delivery infrastructure throughout the country, with a particular focus on rural market expansion. Moreover, the company will allocate resources to expand PepsiCos collaborative farming programme, which provides farmers with access to good quality seeds, technical agronomic expertise, bank loans and crop insurance. This programme currently reaches 24,000 farmers, positively impacting their income and social standing in addition to strengthening the reliability and quality of PepsiCos supply chain, the company said.
The new investments will add more than 100,000 new employment opportunities. PepsiCo and its partners will also implement state-of-the-art technologies to further reduce energy, packaging and water use in their operations.