PepsiCo to more than double production in India by 2020

PepsiCo has announced it will invest Rs. 33,000 crores (equivalent to US$5.5 billion) in India as part of plans to more than double production by 2020.

“India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo,” said PepsiCo Chairman and CEO Indra Nooyi.

“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.”

The company plans to expand its food and beverage portfolio to cater to the evolving consumer demand in India, while significantly increasing manufacturing capacity to meet growing demand. PepsiCo plans to double production capacity to more than double levels by 2020.

PepsiCo and partners plan to improve selling and delivery infrastructure, with a particular focus on rural market expansion. Resources will also be allocated to expand PepsiCo’s collaborative farming program.

“Most importantly, our investments will be aligned with India’s interests,” Nooyi added. “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.”

PepsiCo estimates it has created opportunities for more than 200,000 people since opening its first Indian operations in 1990, through both direct and indirect employment and agricultural collaborations. The $5.5 billion investment will add more than 100,000 new employment opportunities, the company says.