PepsiCo to invest Rs 33,000 cr in India by 2020

Global beverages and snacks major PepsiCo today said it will invest Rs 33,000 crore in India by 2020 to ramp up operations. The company, which has so far invested USD 2 billion in India since its entry in 1989, said the investment that it is going to make will strengthen its capability in various strategic areas including innovation, manufacturing, infrastructure and agriculture. "PepsiCo is going to make an investment of Rs 33,000 crore in India between now and 2020, that is USD 5.5 billion and the investment is going to be made in manufacturing, agriculture, infrastructure and innovation," PepsiCo chairman and CEO Indra Nooyi told reporters here. "India is a country with huge potential and it remains an attractive high priority market for PepsiCo. We believe we have only scratched the surface of long term growth opportunities that exist for PepsiCo and our partners," Nooyi said. Also read: Apple working on curved iPhone screens, enhanced sensors
Elaborating further, Nooyi said: "The reason we are making investment in India is because we believe India is a terrific growth story and PepsiCo has a great business in India. We believe that the story is still unfolding and we want to grow in India, with India, for India and this investment showcases our confidence in India and its growth prospects."
Responding to a query, Nooyi said: "We are not guided by elections. We are guided by potential of India. We are not waiting for any election results to invest in India. We are investing in India for its economic story."
In 2010 the company had said it was investing USD 500 million to sustain its growth in India, following up on a similar investment it had made in 2008. India has been one of the top five markets of PepsiCo and it has eight brands which clock turnover of over Rs 1,000 crore in the market.
The company has 42 plants across India and apart from cold drinks like Pepsi, 7UP, Mirinda and Mountain Dew, it sells snacks under Lehar, Uncle Chipps and Kurkure brands, among others.
Sounding bullish on the Indian market, Nooyi said: "You got to invest against the long term fundamentals of the country. We believe that fundamental India story is still strong... I think our investment shows confidence in India."
Highlighting India's demographic advantage, she said: "If you look at the middle class which is going to be added over the next decade, it is such a staggering number, bigger than the populations of US and France combined or some thing like that."
Stating that India will be among the top global markets for the company, she said: "...based on the population and based on the prospects it should stay in the top five or seven markets of PepsiCo and my hope is that it moves up in the list. I think in PepsiCo, which is a USD 67 billion company, to be in the top 5 or 7 is still big."
Nooyi said PepsiCo's new investment will be for its organic growth purposes in India and it currently does not have any definite plan for acquisitions in India. Commenting on competition in the market, specially with rival Coca Cola, she said: "You know that they (Coca Cola) bought Thums Up and local brands and we did every thing organically (and there is a) big difference between the two companies."
Spelling out the aim of PepsiCo, which among the largest food and beverage companies in India, she said the target was to grow above industry in each business segments that it is present in. "That's really our long term plan. Any one year, there might be ups and downs but long term we want to grow ahead of the category," Nooyi said.