PepsiCo to build food plant in UP at $70M
10 June 2019
PepsiCo India will invest USD 70M to build a food manufacturing plant in Uttar Pradesh, the company said. PepsiCo, the makers of Lay’s chips and Kurkure snacks, said it is part of its efforts to expand capacity in India’s growing packaged foods market. The local arm of the American company also said that it is true to its commitment to invest USD 2.1bn in India by 2022, which is part of the USD 5.5bn it had promised in November 2013.
The announcement comes a day after Prime Minister Narendra Modi took oath of office. PepsiCo’s global chairman and CEO Ramon Laguarta was among a host of senior executives of large businesses to congratulate Modi.
PepsiCo will invest along with its local bottling partners, as it looks to ramp up manufacturing capacity in India, a company statement said. Apart from creating direct employment, the greenfield plant will increase local sourcing and boost cold storage infrastructure, it added.
PepsiCo bottling operations are owned by its local partner Varun Beverages. The packaged snacks and foods market in India is expected to grow 22.3% between 2018 and 2022, according to estimates by research firm Euromonitor. PepsiCo is focussed on offering more local flavours to compete with strong regional brands.
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