PepsiCo aims to double revenue in India with aggressive expansion, investment
INDIA – PepsiCo is making a bold push in India, aiming to double its revenue over the next five years as it identifies the country as a key growth driver.
The food and beverage giant sees India among its top three global markets, experiencing double-digit growth, according to Jagrut Kotecha, CEO of PepsiCo India & South Asia.
“We believe India will be the engine of growth for PepsiCo,” Kotecha said in an interview with PTI.
PepsiCo is backing this ambition with significant investments, recently setting up new manufacturing plants in Uttar Pradesh and Assam. The company has two more facilities in the pipeline, including one in southern India.
Over the past three years, PepsiCo has invested nearly Rs 4,000 crore (US$458.18M) in India, strengthening its presence in one of the world’s fastest-growing consumer markets.
India is among the 13 to 15 “anchor markets” PepsiCo has identified for substantial future growth. While Kotecha did not specify exact projections, he emphasized the importance of aggressive investments to capitalize on the country’s expanding market.
PepsiCo’s India operations focus on three key strategies: large-scale expansion, sustainability, and localized offerings.
The company has divided India into nine clusters based on regional taste preferences and is integrating sustainable practices into its production and supply chain.
Last month, it reported double-digit organic revenue growth in India, driven by strong demand in both snack and beverage segments.
PepsiCo’s bottling partner, Varun Beverages Ltd. (VBL), is also making significant investments. The company operates 41 plants across India and is increasing capacity by 25% this year alone, reflecting the rising demand for branded beverages in the country.
India’s US$12 billion beverage market is expanding at a compound annual growth rate of 10-11%, attracting new entrants such as Reliance’s Campa Cola, which is shaking up the industry with competitive pricing.
Despite the growing competition, Kotecha believes it will ultimately benefit the industry by increasing consumer adoption of branded products.
“Even before Pepsi and Coke were here, there were many local, regional players,” Kotecha noted. “Now Campa has also entered with a lot of investment. Our belief is that category growth will accelerate, and overall consumption will rise.”
PepsiCo’s India portfolio includes well-known snack brands such as Lay’s, Kurkure, Quaker, and Doritos, as well as beverages like Mountain Dew, 7UP, Pepsi, and Tropicana.
In 2023, 80% of PepsiCo India’s revenue came from the food segment, while 20% was from beverages, which are managed by VBL.
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