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Pepsi to invest $500 M in India: Nooyi
By agencies
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Wednesday, 30 March 2005, 20:30 IST
NEW DELHI:Buoyed by four-fold growth in business in the last five years, U.S. cola giant PepsiCo has announced $500 million investment in India to consolidate its beverages and snacks business.
"We have invested over Rs 30 billion directly and Rs 9 billion through our partners so far and we are going to invest $300-500 million more over the next three to five years," Indra Nooyi, President and Chief Financial Officer, PepsiCo, said.
Ranking India at number five worldwide in terms of revenues, Nooyi said PepsiCo's business has grown four fold in the last five years and the company has put in place a strategy to expand further.
PepsiCo, which pioneered the concept of contract farming in the country, has recently entered into a partnership with the Punjab government to grow Florida oranges and tangerines to expand juice business in India and later add to Pepsis growing exports portfolio.
Nooyi also said: "We are making cash profits from our Indian business. I am bullish on India and looking at the market as a long term bet."
Of the announced investment of up to $500 million, Nooyi said about 60 percent is targeted for the beverages segment while the rest would be for snacks.
Terming India as one of the most important global markets for PepsiCo, Nooyi claimed over the last five months Pepsi has emerged as number one in the market share in beverages segment and said: "It is the second biggest consumer brand in the country."
After the Kurkure snacks business became huge success, the company will take it to other markets like the United States, the United Kingdom, South Africa, Middle East and Australia.
Nooyi also said the company was not only looking to add to its beverages and snacks portfolio, but will introduce itself in the breakfast segment for the first time.
Pepsi will spread its Lipton Iced Tea distribution across the country. Then will come the manufacturing of sports drink Gatorade in the country, for the niche fitness market seems to have accepted the product.
However, it is with Quaker breakfast products that the company plans to make its big splash as it is looking at not only oat mixes and hot breakfast cereals, but other breakfast products, including bars and twists.