PepsiCo India to set up business services hub in expansion strategy

INDIA – PepsiCo India will be investing in a new business services hub in Hyderabad, India that will serve a variety of the companies business function including human resource, supply chain and operations.

Sitting on a 380 000 square feet site, the business hub is PepsiCo’s largest business hub outside the US. It will also represent the company’s consumer insights, marketing, finance and digital solutions functions.

According to a Times of India report, the facility will increase the company’s pool of expertise by 2, 500 over the next three years. The company plans to formally open the centre later this year.

“We are excited to expand our presence in one of PepsiCo’s largest global markets by establishing a business service hub in Hyderabad,” said the company’s spokesman.

“We will officially open this new office later this year, and will continue to hire India’s high calibre talent to join our team.

“This effort furthers our public commitment made in November 2017 to create new jobs and invest $2.1 billion by 2022 in the country,” he said.

The India business services centre is part of PepsiCo’s planned multi-location global capability strategy seeking to optimize its entire business and pursuing cost saving initiative.

In India, PesisCo is planning to double its snacks business by 2022 through an all around approach focusing on major components including manufacturing capabilities and ingredients sourcing alongside with a US$71 million investment.

The company intends to establish a greenfield snacks manufacturing plant’​ in the northern Indian state of Uttar Pradesh over the course of three years.

PepsiCo says that once complete, the facility will act as a hub to address the growing demand its snacks products amongst consumers in the state and beyond.

PepsiCo India plans to expand its backward integration efforts with local farmers and further support them with ‘agricultural best practices’​.

To strengthen its supply chain, the company will also be setting set up a cold storage facility.

This will also increase PepsiCo’s local sourcing capabilities and further support the Sustainable Farming Programme, a collaborative initiative between the company and farmers with a strong focus on potatoes.

According to PepsiCo India, its farmer partnership model extends across nine local states and has helped farmers with ‘providing new varieties, technologies and sustainable farming practices’​.

The company is also working to develop a ‘citrus ecosystem’ in the state of Maharashtra by investing in a citrus processing facility as well as helping citrus farmers to improve productivity.

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