PepsiCo
Investing in India
By FBWorld
NEW
DELHI - PepsiCo, Inc. is ramping up its presence in India
with the announcement it will invest 33,000 crore rupees
($5.5 billion) in the country by 2020. The company plans
to use the funds to support its efforts in innovation,
manufacturing, infrastructure and agriculture.
"India is a country with huge potential, and it remains
an attractive, high-priority market for PepsiCo,"
said Indra Nooyi, chairman and chief executive officer.
"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."
PepsiCo
India already has built eight brands that generate 1,000
crore rupees or more in estimated annual retail sales
(Pepsi, Lay's, Kurkure, 7UP, Slice, Mirinda, Mountain
Dew and Aquafina).
On
the manufacturing front, PepsiCo said it plans to significantly
increase capacity 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.
PepsiCo
and its partners plan to ramp up selling and delivery
infrastructure throughout the country, with a particular
focus on rural market expansion. As part of this strategic
initiative, PepsiCo said it 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,
PepsiCo said it will allocate resources to expand its
collaborative farming program, which provides farmers
with access to quality seeds, technical agronomic expertise,
bank loans and crop insurance. The program currently reaches
24,000 farmers. "Most importantly, our investments
will be aligned with India's interests," Ms. Nooyi
said. "We will be guided by Performance with Purpose,
PepsiCo's vision for building a profitable and sustainable
21st century corporation that is a good investment for
our shareholders, a good environment for our employees,
a good citizen in our communities and a good steward of
our planet's resources. We believe Performance with Purpose
will drive sustained value for PepsiCo and positively
contribute to India's development well into the future."
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 is estimated
that the strategic initiative will add more than 100,000
new employment opportunities.
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by
Eric Schroeder
Courtesy of Food Business News
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