Nov 11 PepsiCo Inc, the maker of
Pepsi-Cola, Frito-Lay snacks and Tropicana juice, plans to
invest $5.5 billion in India by 2020 to expand its presence in
the country, it said on Monday.
PepsiCo's plans come after rival Coca-Cola Co, the
world's largest drinks maker, said in June last year it would
invest a total of $5 billion between 2012 and 2020 to grow its
business in Asia's third-largest economy.
PepsiCo and Coca-Cola's investments, driven by a growing
middle class with higher disposable incomes, are likely to be
welcomed by Indian officials who are trying to restore foreign
investor confidence after growth has fallen to a decade-low.
"India is a country with huge potential and it remains an
attractive, high-priority market for PepsiCo," Chief Executive
Officer Indra Nooyi said in a statement.
"We've built a highly successful business in India over the
course of many years and we believe we've only scratched the
surface of the long-term growth opportunities that exist for
PepsiCo and our partners," said Indian-born Nooyi on a visit to
PepsiCo and its partners plan to invest in expanding their
product range, doubling production capacity and improving their
sales and distribution network, especially in rural markets, the
The company has 38 bottling plants and three food plants in
India, according to its website, and generates more than 10
billion rupees ($159 million) in annual sales from eight
products including Pepsi and Frito-Lay potato chips, it said.
PepsiCo saw volumes in its snack business in Asia, the
Middle East and Europe rise 4 percent in the July-September
quarter, led by double-digit growth in China, Pakistan and
Turkey. On the drinks side, volume rose 7 percent.
India is trying to attract more foreign investments by
opening up various sectors including retail and telecoms in a
bid to narrow its current account deficit.
Separately Britain's biggest clothing retailer Marks &
Spencer on Monday opened its largest store in India in
Mumbai, while Unilever said in April said it
would raise its stake in Hindustan Unilever to as much
as 75 percent from 52 percent.
However, India has also had some high-profile departures as
the government has been seeing as struggling to pass reforms.
India's economy also slowed to a decade low of 5 percent in the
fiscal year through March, while inflation has been
In October BHP Billiton Ltd surrendered
almost all its oil and gas blocks in the country, citing an
inability to carry out exploration operations.