PepsiCo is “extremely optimistic” for India’s future market and for meeting its increasing demand, the company has decided to increase its investment form Rs 500 crore to Rs 814 crore in its new greenfield snacks plant in Uttar Pradesh, according to its India President Ahmed ElSheikh.
PepsiCo is one of the largest food and beverage companies, after 30 years of its establishment in India and is committed to double its business from its snacks business. It is also increasing its existing capacity of food plants in West Bengal and Maharashtra and has proposed for setting up a new greenfield manufacturing facility in Assam.
ElSheikh said that the consumption story of India has just started and according to the industry reports, it will be the third-largest consumption market by 2025. The industry is seeing consumption revival which expects only to be getting better with the further unlocking and the upcoming festive season, he said.
The Food and beverages major has introduced a 1.25-litre PET pack at an affordable price of Rs 50 in its beverage portfolio and it has also introduced various combo packs in its food portfolio. PepsiCo has also strategised price points in smaller packs to meet both the rural as well as urban demands.
Last week, the company in the global Q3 results had reported organic revenue growth in some of the international markets including India as well. According to the filing, PepsiCo India’s profit after tax (PAT) for the FY20 has increased to Rs 329 crore from Rs 36 crore in FY19.