NEW DELHI: PepsiCo will ramp up investments in India with a Rs 5,700-crore expansion by 2030 as the snacks and beverages maker bets bigger on one of its fastest-growing markets after a strong performance last year. The company reported a second consecutive year of double- digit growth, with a revenue of Rs 9,798 crore, up 8% year-on-year, while profit rose 4.5% to Rs 905 crore, PepsiCo India and South Asia CEO Jagrut Kotecha said. The performance was driven by the foods business, which posted a strong 11% increase across core brands, such as Lay’s and Kurkure, prompting the company to direct a significant part of its planned capex towards expanding snacks manufacturing capacity. Investments in innovative products are beginning to make a meaningful contribution, with PepsiCo stepping up R&D spends by about 15% year-on-year to drive “India-for-India” innovation, he said. The beverages business, however, faced headwinds from weak weather conditions and intensified competition, which weighed on demand last year. The investment push comes even as the FMCG industry faces geopolitical uncertainties, volatile consumer demand and a growing shift towards healthier options. Describing India as one of PepsiCo’s top 13 markets globally with a long-term potential, Kotecha said the company will continue to invest in innovation, R&D and future-ready product portfolios tailored for India. He said the volatility and uncertainty remain high, but current demand signals in India continue to be encouraging, supported by low per-capita consumption and the ongoing shift from unbranded to branded products. “We will look month after month, keep our ears to the ground, to the consumer and to market sentiments, and make those choices from time to time.” The company’s broad affordability range will help address downtrading pressures, with snacks priced between Rs 5 and Rs 100 and beverage packs starting at Rs 10 in select markets.
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