PepsiCo optimistic about future of Indian market

PepsiCo is very much optimistic about the future of the Indian market despite disruptions brought about by the COVID-19 pandemic. The company’s India President Ahmed ElSheikh said they are committed to double its business in the country. He said they are also looking at increasing the capacity of existing food plants in West Bengal and Maharashtra.

PepsiCo has emerged as one of the largest food and beverages companies in India. ElSheikh told PTI that they have increased their investment in the new greenfield snacks plant in Uttar Pradesh from Rs 500 crore to about Rs 814 crore, generating 1,500 direct and indirect jobs as well as enabling a local sourcing ecosystem. With the festive season around the corner, the food and beverages giant expects and enhanced demand from categories like snacks, juices and other carbohydrated beverages. “From an FMCG point of view, the industry is seeing consumption revival, which we expect will only get better with further unlocking and the upcoming festive season,” ElSheikh said.

In regards to consumer trends, the top executive said the in-home consumption has a significant uptake and consumers are seeking convenience along with the value. “As people adjust with the new normal, in-home consumption is witnessing a significant uptake. There is growing demand for our larger packs as in-home occassions of togetherness have increased manifold,” ElSheikh said. “While the consumers are looking at in-home experiences and seeking convenience, they are also looking at value.” As such, the company has introduced the 1.25 litre PET pack in its beverage portpolio at a very affordable price of Rs 50 targeting the in-home consumption. It has also introduced various combo packs in its food portfolio. ElSheikh highlighted affordability as the key. In the smaller packs, PepsiCo has also strategized price points to meet both, rural and urban demand. “With the Indian FMCG industry slowly showing signs of revival in COVID impacted world, we have adapted quickly and re-strategized our price-pack programmes, ehanced consumer engagement initiatives and doubled down attention on both B2C and B2B distribution models to meet consumer demand.”

Moreover, the company’s transformation journey in India remains on track. Its third successive year of profit in FY2019-20 which has been all about building a faster, stronger, better company in India.