PepsiCo chairman and CEO Indra Nooyi announced plans to invest Rs 33,000 crore in India by 2020. The proposal "is PepsiCo's vote of confidence in India's future", she said shortly after meeting finance minister P Chidambaram in Delhi on Monday.
This is the largest investment proposal by any company during the term of UPA-II, comfortably beating Unilever's $3.2 billion (about R19,000 crore) stake purchase in Hindustan Unilever in July this year, and comes at a time when the government is pulling out all stops to encourage investments to kickstart the economy.
"India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo. We have built a highly successful business in India and we believe we have only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners," the India-born Nooyi said in a statement.
Pepsi will invest in doubling its manufacturing capacity and ramping up its delivery infrastructure across rural India. It has invested about $2 billion (about 12,600 crore at current exchange rates) since 1990, when it entered the country and has 42 plants across the country.
With eight brands and a turnover of more than Rs 1,000 crore turnover here, India is one of the top five markets of PepsiCo. Apart from soft drink brands such as Pepsi, 7 UP, Mirinda and Mountain Dew, it also sells packaged snacks under the Lehar, Uncle Chipps and Kurkure brands.