NEW DELHI: Food and beverage giant PepsiCo is aiming to double its revenue in India over the next five years, placing the country as a major driver of its global growth.
The company is making significant investments to expand its capacity, with India & South Asia CEO Jagrut Kotecha describing the market as a “key anchor” for the company.
In an exclusive interview with news agency PTI, Kotecha said that India will be the “engine of growth for PepsiCo.” He also highlighted that the country is already among PepsiCo’s top three markets globally, with double-digit growth contributing to its expansion.
To meet rising demand, PepsiCo also invested in new greenfield plants in Uttar Pradesh and Assam, with plans to open two more facilities, including one in southern India.
We have plans to open up in other parts of the country as part of that. So, we are not going to be investment shy. We are going to be investing forward to drive that growth because it is there for us to capture the (market),” he said.
While India currently ranks among PepsiCo’s top 15 global markets, Kotecha expects it to move up the list, though he refrained from specifying a timeline. The company re-entered India in the 1990s after a 28-year gap, and today, it is considered one of PepsiCo’s 13 to 15 “anchor markets” worldwide, regions identified as key growth engines for the next five to seven years.
PepsiCo aligns with the Indian government’s 2030 economic vision, Kotecha noted, describing India as “one of the most stable economies and a growth engine.” He added, “We have been investing for nearly 30 years, but now we need to accelerate that investment.”
The company is operating under three strategic pillars, “faster, stronger, better,” and has divided India into nine clusters based on regional taste preferences. Sustainability is also a key focus, with efforts to implement environmentally friendly solutions and build local capabilities.
Last month, PepsiCo reported double-digit organic revenue growth in India, with increased market share in both savoury snacks and beverages. While Kotecha did not commit to a specific timeline for reaching $2 billion (around Rs 17,000 crore) in revenue, he called it an “aspiration” that could be realised if infrastructure and market conditions align.
In 2023, PepsiCo India recorded over Rs 8,200 crore in revenue over nine months due to a fiscal year change, and it has maintained strong double-digit growth since. The company has already invested Rs 3,500-4,000 crore in India over the past three years and is set to continue expanding. A new plant near Mathura, Uttar Pradesh, is operational, while another facility in Assam is expected to start by the end of the year.
“Our investment strategy remains forward-looking. We see a tremendous opportunity and will continue investing to drive growth,” Kotecha said.
PepsiCo’s bottling partner, Varun Beverages Ltd (VBL), is also making significant investments.
“I think they have close to 40-odd plants. They have just invested in capacities, increasing by 25 per cent this year. They are continuing that type of investment to grow with us. Our partnership is pretty strong to enable that growth. Both of us feel very good about this,” Kotecha said, emphasising the strong partnership between the two companies.
On the growing competition in the Indian beverage market, particularly from Reliance’s Campa Cola, Kotecha welcomed the rivalry, saying that competition helps expand the category.
“Even before Pepsi and Coke were there, there were a lot of local, regional players,” he said, “Now Campa has also come with a lot of flair and expense and all. So our belief is the category will then grow and the consumption will grow.”
He pointed out that India’s per capita beverage consumption remains low, even compared to neighbouring countries like Pakistan. “Our focus is on understanding consumer needs and playing to our strengths,” he said.
PepsiCo’s beverage portfolio in India includes brands like Pepsi, 7UP, Mountain Dew, Sting, Gatorade, Tropicana, and Slice. Its snack segment features Kurkure, Lay’s, Quaker, and Doritos.
In 2023, around 80 per cent of its revenue came from the food segment, while beverages contributed the remaining 20 per cent, largely managed by VBL.
The Indian beverage market, currently valued at $12 billion, is growing at a compound annual growth rate (CAGR) of 10-11 per cent. With ongoing investments and increasing consumer demand, PepsiCo is well-positioned to capitalise on this expanding market.
