PepsiCo plans to double revenue in India within 5 years
What's the story
PepsiCo, the global food and beverage giant, has set an ambitious goal of doubling its revenue in India in the next five years.
Jagrut Kotecha, CEO of PepsiCo India & South Asia, revealed that the country is a "key anchor market" for the company's growth strategy.
In an exclusive interview with PTI, Kotecha said, "India will be the engine of growth for PepsiCo to drive the top line."
Market growth
India among PepsiCo's top 3 global markets
India is now among PepsiCo's top three markets, and it contributes significantly to the company's global revenue.
Kotecha said that although India is not as big as North America (because it is a more evolved category), the per capita consumption is still very low.
"We would expect one of PepsiCo's fastest growing economies to do that," he said about the consumption in India.
Expansion strategy
Expansion plans include new facilities
To cater to the increasing demand in India, PepsiCo has invested in greenfield plants in Uttar Pradesh and Assam.
Kotecha also unveiled plans to open two more facilities, including one in the southern region.
"We are not going to be investment shy," he said, reiterating the company's commitment to drive growth through strategic investments across different regions of the country.
Strategic alignment
PepsiCo aligns with India's economic vision for 2030
Kotecha said PepsiCo fits perfectly with the Indian government's vision for 2030, which seeks to place India among the top three economies of the world.
"It's one of the most stable economies, growth engine, etc., and hence, PepsiCo also has been in this country for almost 30 years," he said.
"So, we need to double that, dial that up and start investing."
Operational strategy
Strategic pillars and market segmentation
PepsiCo's India operations are guided by three strategic pillars: "faster, stronger, better."
The company has divided the Indian market into nine clusters according to regional taste preferences.
Kotecha noted that PepsiCo reported double-digit organic revenue growth in India last month and gained market share in both savory snacks and beverages.
These results indicate how well PepsiCo's strategy to cater to diverse consumer preferences is working.