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PepsiCo India has revealed plans for a substantial investment of Rs.1,266 crore to construct a new flavour manufacturing facility in Ujjain, Madhya Pradesh. This initiative aims to bolster the company’s beverage production capacity in India.
Expansion Plans in India
This new facility in Ujjain will mark PepsiCo India’s second such manufacturing site in the country. The company aims to produce beverage flavours specifically tailored for the Indian market. Currently, PepsiCo operates a similar plant in Channo, Punjab.
Timeline for Construction
Construction for the Ujjain plant is slated to commence in 2024, with an anticipated completion by the first quarter of 2026.
PepsiCo’s Bottling Operations
PepsiCo’s beverage bottling operations in India are mainly managed by Varun Beverages Ltd, one of the company’s largest bottlers globally.
Embracing Sustainability
Jagrut Kotecha, CEO of PepsiCo India & South Asia, emphasized the facility’s commitment to sustainability and the ‘Make in India’ vision. He expressed a dedication to community engagement, striving for holistic development and welfare.
Part of Broader Strategy
This announcement aligns with PepsiCo’s broader strategy to bolster its production capabilities in India’s thriving packaged food and beverage sector. Notably, other multinational corporations like Nestle and Mondelez have also increased their investments in response to growing consumer demand.
PepsiCo’s Previous Investments
PepsiCo India has been actively investing in the country. Last year, it announced a Rs.778 crore investment for a food manufacturing plant in Assam and a Rs.186 crore investment to expand its facility in Kosi Kalan, Mathura, Uttar Pradesh.
Response to Rising Demand
George Kovoor, Senior Vice President of Beverages at PepsiCo India, highlighted the company’s goal to meet the rising demand for beverages in the country.
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Financial Performance
In the fiscal year 2023, PepsiCo India witnessed a significant surge in profit to Rs.255 crore from Rs.27.8 crore in the previous year. Revenue also experienced a robust increase of 28.5% to Rs.8,128 crore, driven by strong sales of both food and beverage products, including Lay’s chips and Pepsi, Mirinda, and Tropicana beverages.
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