PepsiCo $5.5 Billion Investment in India to Include Doubling Production Capacity


Today, PepsiCoannounced it would be investing $5.5 billion in India by 2020. The food and beverage company is one of the largest in India and India also represents one of PepsiCo's largest global markets.

The company press release noted that PepsiCo's intention behind the investment was to "further strengthen and expand PepsiCo's capabilities" in four strategic areas: innovation, manufacturing, infrastructure, and agriculture.

PepsiCo hopes to widen the offerings of food and beverages to cater to Indian consumers' "evolving needs," and noted that it has eight brands in the country that generate more than $160 million in annual revenue. In addition to expanding its product offerings, PepSiCo also plans to increase its manufacturing to allow it to more than double its production capacity in India in order to meet growing demand.

PepsiCo will also increase its infrastructure in India in an effort to increase its selling and delivery capabilities, with a particular focus on rural markets. The release highlighted the company "will work with its partners to deploy new technologies designed to enhance service to retail customers and increase efficiency across go-to-market systems." Finally, the company will continue to provide resources to its farming program which helps support farmers by providing 24,000 farmers things like seed, expertise, insurance, and loans.

"India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo," said CEO and Chairman Indra Nooyi. "We've built a highly successful business in India over the course of many years, and we believe we've 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."

Coca-Cola Co. announced last year that it would invest $3 billion in India over an eight-year period to increase its stake in the expanding market.

-- Material from The Associated Press was used in this report.


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