To expand its presence in India’s thriving beverage market, PepsiCo India has announced a significant investment of INR 1,266 Cr to set up a new flavour manufacturing facility in Ujjain, Madhya Pradesh.
Strategic Expansion
The upcoming facility in Ujjain will be PepsiCo India’s second manufacturing site dedicated to the production of beverage flavours exclusively formulated “in India, for India”. With construction expected to begin in 2024 and completion by the first quarter of 2026, the new plant will be operational in March.
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Sustainable Development Focus
Jagrut Kotecha, Chief Executive Officer of PepsiCo India & South Asia, emphasized the company’s commitment to sustainability and community welfare through the new facility. By championing sustainable practices and fostering meaningful engagement, PepsiCo aims to contribute to the holistic development of the communities it serves.
Industry Trends
PepsiCo’s investment is in line with broader industry trends, as multinational corporations such as Nestlé and Mondelez have also increased their investments in India’s packaged food and beverage sector. The recent inauguration of a food processing unit in Odisha by Nestle and substantial investment pledge by Mondelez reflects the growing demand for consumer goods in the Indian market.
Previous Investments
This latest announcement adds to the series of PepsiCo India investments in the country. Last year, the company revealed plans for an INR 778-Cr food manufacturing plant in Assam, while in 2022, it announced an investment of INR 186 Cr to expand its existing food manufacturing facility in Uttar Pradesh.
Revenue Growth
The move comes on the heels of impressive financial performance for PepsiCo India, with a surge in profit to INR 255 Cr in fiscal year 2023 from INR 27.8 Cr the previous year. Revenue also saw a robust increase of 28.5% to INR 8,128 Cr, driven by strong sales of its flagship products including Lay’s chips and Pepsi, Mirinda, and Tropicana beverages.
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Future Outlook
With the new flavour manufacturing facility in Ujjain and ongoing investments in the region, PepsiCo India is poised to further strengthen its position in the Indian market and meet the evolving demands of consumers. George Kovoor, Senior Vice President of Beverages at PepsiCo India, expressed the company’s commitment to ramping up beverage production to meet the rising demand across the country.
