Indra Nooyi announces PepsiCo’s 33,000 crore investment in India
“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” – Indra Nooyi, during a recent press conference. In a move which indicates positive growth potential for both company and country, PepsiCo CEO, Indra Nooyi recently announced the company’s plans to invest 33,000 crore, or US $5.5 billion into India in a bid to “ramp up operations”. Speaking with press reporters, Nooyi stated that the investment would be directed towards strengthening PepsiCo’s capacity in diverse areas, including Agriculture, Innovation, Manufacturing, and Infrastructure. This investment is expected to be one of the largest in India in recent times; interestingly PepsiCo had previously invested approximately $ 2 billion into the country since its entrance into the market in 1989. With the current investment more than doubling, it is assumed that this means that the Indian market is being considered as viable and filled with potential. Elaborating on the decision to invest, Nooyi reinstated PepsiCo’s faith and high priority consideration for India as a “terrific growth story” and “an attractive high priority market” for the company. Indeed, India is a high priority market for the company, with 8 brands which contribute towards a turnover of Rs.1000 crore annually. It has consistently been among the top 5 markets for the company, and investments of up to $500 million have been made since 2010 as a result. The company’s existing investment in India will surely boost its scale of operations, which currently includes 42 plants across the country. Along side manufacturing popular beverages such as Pepsi, 7UP, Mountain Dew, and Mirinda, the company also manufactures savory snacks such as Kurkure sticks and Uncle Chipps, which are among the most frequently bought snacks in the local, i.e. Indian market. Referring to India’s growth story, Nooyi reinstated her faith in the growth potential of the Indian market by terming the investment, “an investment into India’s economic story”. She went on to state that upcoming elections and politics had not, and indeed, never would play a role in deciding PepsiCo’s decision to invest in the country’s future. Among the forecasted benefits of this considerable investment, the country can hope that its citizens are given employment opportunities in the various direct and ancillary markets which will open in response to the expanded manufacturing and development units which will be opened. This too, will be another feather in Nooyi’s cap as she brings more development to the country.