INDIA – PepsiCo India, a prominent global consumer packaged goods company, has announced a substantial investment of INR 1266 crore (US$151.8 million) in India to establish a cutting-edge flavour manufacturing facility in Ujjain, Madhya Pradesh.  

This move reaffirms PepsiCo’s commitment to expanding its operations in the country and underscores its dedication to supporting local economies. 

Spanning across 22 acres, the new plant is poised to significantly bolster PepsiCo’s beverage production capabilities in India, creating employment opportunities and positively impacting the regional economy.  

This facility marks PepsiCo India’s second flavour manufacturing unit in the country, highlighting its commitment to manufacturing beverages ‘In India, for India’. 

The plant which is said to align with PepsiCo’s ‘Winning with pep+’ philosophy, focused on sustainable accelerated growth, will incorporate state-of-the-art technologies to ensure efficient water usage and replenishment, thereby setting new benchmarks for eco-conscious operations in the industry. 

Jagrut Kotecha, Chief Executive Officer of PepsiCo India & South Asia, expressed gratitude for the support from the government of Madhya Pradesh and emphasized the company’s goal of contributing to the socio-economic development of the region.  

He stated, “Bolstering the ‘Make in India’ vision, the new flavour manufacturing facility will champion sustainability, aligning with our ‘Winning with pep+’ philosophy, creating a positive value chain while delivering on our promise of continuous innovation in our products.  

Through meaningful engagement, our goal is to work towards comprehensive development, contributing to the holistic advancement and welfare of the communities we serve.” 

In line with PepsiCo India’s global sustainability goals, the manufacturing facility will operate entirely on renewable energy sources, leading to a remarkable reduction in carbon footprint.  

PepsiCo revealed that the plant will adopt Zero Liquid Discharge technology aiming to achieve approximately 90% overall water efficiency, reflecting responsible water resource management. 

PepsiCo’s first flavour manufacturing facility in India, located in Channo, Punjab, paved the way for the company’s continued expansion in the region.  

With the establishment of the new plant in Ujjain, PepsiCo aims to strengthen its presence in the flavour segment and contribute meaningfully to the socio-economic fabric of the region. 

Construction of the facility is scheduled to commence in 2024, with operations expected to commence in the first quarter of 2026. 

In 2023, the company saw its beverage sales volumes rise at a “double-digit” rate in India, while its volumes of “convenient foods” dropped at a “low-single-digit” rate. 

The company contracts bottler Varun Beverages to manufacture and distribute its drinks across 27 states and seven union territories in India. According to Varun Beverages, the deals represent around 90% of PepsiCo’s beverage sales volume in the country. 

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