Within the following five years, PepsiCo intends to achieve a revenue increase of 100 percent for its Indian operations. PepsiCo continues to invest heavily in India because it views the country as a fundamental market for growth, which requires extensive production and market expansion investments.
Food snacks and beverages operations from PepsiCo generate two of their three largest market segments in the world, and India plays an essential part in their worldwide income strategy. As the demand for its products grows, PepsiCo has established new production sites in Uttar Pradesh and Assam and intends to establish two additional plants, which include one in Southern India.
Jagrut Kotecha, who leads PepsiCo India and South Asia, believes that India will serve as the key growth factor for PepsiCo to advance its top-line income performance. The per capita beverage and food consumption rate in India remains low, yet PepsiCo predicts that the country will become one of its top fast-growing markets.
Aligning with India’s Economic Vision
PepsiCo has maintained operations in India for three decades while ranking this country as one of its 13 to 15 central market locations. The business supports India’s future economic roadmap that plans major expansion through 2030.
The company needs to enhance its investment pace aggressively because India operates as a stable economy and growth engine, according to Kotecha. PepsiCo remains committed to continuing to invest in this lucrative business opportunity.
Strong Revenue Growth and Market Expansion
PepsiCo registered substantial double-digit organic revenue expansion in India because the company expanded its market dominance across savory snacks and beverages. During his interview, Kotecha did not specify a precise timeframe for reaching the USD 2 billion revenue goal, but he strongly emphasized that the company would fulfill this target within a short period.
In 2023, PepsiCo recorded approximately Rs 5,950 crore in revenue over a nine-month period due to a financial year transition. Extrapolating for a full year, this would translate to around Rs 8,200 crore. Its bottling partner, Varun Beverages, which accounts for 90 percent of PepsiCo India’s beverage sales volume, reported a standalone revenue of Rs 12,778.96 crore in 2023.
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Massive Investments for Long-Term Growth
Over the past three years, PepsiCo has invested between Rs 3,500 and 4,000 crore in India, reaffirming its commitment to the market. Its bottling partner, Varun Beverages Ltd. (VBL), has also expanded its operations, running 41 plants and increasing its capacity by 25 percent in 2024.
Market Competition and Future Prospects
The Indian beverage market, valued at around USD 12 billion, is growing at a compound annual growth rate (CAGR) of 10-11 percent. PepsiCo faces increasing competition from new players like Reliance’s Campa Cola, which has disrupted the market with aggressive pricing and distributor margins.
In 2023, approximately 80 percent of PepsiCo India’s revenue came from its food division, with the remaining 20 percent from beverages. With strong financial growth, expanding market reach, and continuous investments, PepsiCo remains committed to strengthening its footprint in India and capitalizing on the country’s economic potential.