PepsiCo India has announced plans to invest INR 5.14 billion ($74.4 million) over three years to build a new snacks manufacturing plant in Uttar Pradesh, India.
The new investment plan is in line with the company’s goal to double its snacks business in India by 2022.
As part of the project, PepsiCo India said it will expand its backward integration with local farmers and help bring agricultural best practices to enable socio-economic growth for potato farmers in Uttar Pradesh. The company will also set up a cold storage facility in the state.
In India, PepsiCo sells brands such as Lay’s, Cheetos, Doritos, Quaker, Kurkure and Uncle Chipps.
Speaking about the investment, PepsiCo India CEO Ahmed ElSheikh said: “PepsiCo is committed to growing its food and beverage business sustainably in India. We have a long relationship with the people of Uttar Pradesh. As we look to double our snacks business over the next few years, we intend to invest Rs.514 crores approx. to expand our footprint in Uttar Pradesh.
“Agriculture is at the heart of PepsiCo and our farmer friends are the backbone of our business. As we expand our operations, we will look forward to a fruitful association that will not only help create jobs and enable ancillary industries, but also ensure the socio-economic progress of potato farmers in the state.”
He added: “PepsiCo’s new facility, once finalised, will act as a hub to address the growing demand for our well-loved snacks products amongst consumers in the state and beyond.”
Last year, PepsiCo India said it cut the amount of sodium included in its Lay’s crisps in India in order to promote healthier diet choices for consumers.
In its second-quarter results published last month, PepsiCo recorded a 2.2% increase in its second-quarter net revenue compared to the same period last year, as it continues to be boosted by snack sales in North America.
© FoodBev Media Ltd 2019