4 June 2009 - PepsiCo has said that its investments this year in its Indian beverage business will exceed USD 220 million - the largest investment by PepsiCo in India since its entry in 1989.
PepsiCo’s based its decision to invest such an amount on its beverage business momentum, which has steadily accelerated over the last nine quarters.
"We are extremely pleased with our performance in 2009. Our beverage volume is growing around 30 per cent in the current year", said Sanjeev Chadha, Chairman and CEO of the PepsiCo India Region.
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These new investments will be spread across manufacturing capacity, market infrastructure, supply chain, fruit processing, agriculture, and R&D.
Over the next three years, capacities will be augmented in other locations, including the setting up of new greenfield plants.
"The company has already begun scouting around for suitable locations, and will focus on states that offer the best investment environment", the company said.
PepsiCo’s India's strong growth concerns all categories, including carbonated drinks, juices, juice-based drinks, sports drinks, as well as water. |
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The company said growth was driven by investments in market infrastructure, innovative marketing campaigns, a stronger distribution network, the launch of new products like the extremely popular Nimbooz, and new packages like the stylish Pepsi My Can.
"The excise reduction by the Indian government as part of its fiscal stimulus package, has played a critical role in enabling the company to withstand cost pressures and maintain price stability of its products. PepsiCo wants its new investments to be in place to capture the higher growth potential that it expects India will offer in coming years", stated the company.
