New Delhi, 1 June , 2009: Buoyed by record growth , PepsiCo India today announced that it is more than doubling its investments in its Indian beverage business in 2009.
In the current year PepsiCo's total system investment in its Indian beverage business will now exceed $220 million. Of this, PepsiCo India will invest over $170 million, with its bottling partners investing the balance. This is by far the largest investment made by PepsiCo in its beverage business since its entry into India in 1989.
PepsiCo's beverage business momentum 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 Mr Sanjeev Chadha, Chairman and CEO, PepsiCo, India Region. "To sustain this growth, I am happy to report that we have decided to revise our earlier investment plans upwards, and are now more than doubling our investments over last year", he added. PepsiCo is now the fastest growing beverage business in India.
These new investments will be spread across manufacturing capacity, market infrastructure, supply chain, fruit processing, agriculture, and R&D. This is over and above the significant capacity additions made by PepsiCo last year. 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.
PepsiCo's strong growth has been spread across the company's diverse portfolio, with all categories: carbonated drinks, juices, juice-based drinks, sports drinks, as well as water showing strong momentum. The growth has been 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.
PepsiCo is one of the world's largest food and beverage companies, with 2008 annual revenues of more than $43 billion. The company employs approximately 198,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods.
PepsiCo entered India in 1989 and has grown to become the country's largest selling food and beverage company. One of the largest multinational investors in the country , PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. The group has built an expansive beverage , snack food and exports business and to support the operations are the group's 41 bottling plants in India , of which 13 are company owned and 28 are franchisee owned. In addition to this , PepsiCo's Frito Lay snack division has 3 state of the art plants. PepsiCo's business is based on its sustainability vision of making tomorrow better than today. PepsiCo India's commitment to living by this vision every day is visible in its contribution to the country , consumers , farmers and people. www.pepsiindia.co.in
Mrinall Kanti Dey
GM - Corporate Communications
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Shilpa Kaicker/Divya Bakhshi
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