NEW DELHI : PepsiCo India on Tuesday announced an investment of 1,266 crore to build a new flavour manufacturing facility in Ujjain, Madhya Pradesh, aimed at expanding the company’s beverage production capacity in India.

The facility in Ujjain will mark PepsiCo India’s second such manufacturing site in the country, intended to produce beverage flavours “In India, for India.” PepsiCo currently operates a similar plant in Channo, Punjab. 

The construction of the Ujjain plant is scheduled to begin in 2024, with its completion expected by the first quarter of 2026.

PepsiCo’s beverage bottling operations in India primarily rest with Varun Beverages Ltd, one of the company’s largest bottlers globally. 

“Bolstering the ‘Make in India’ vision, the new flavour manufacturing facility will champion sustainability…Through meaningful engagement, our goal is to work towards comprehensive development, contributing to the holistic advancement and welfare of the communities we serve,” said Jagrut Kotecha, chief executive officer, PepsiCo India & South Asia.

This announcement comes as part of PepsiCo’s broader strategy to enhance its production capabilities in India’s growing packaged food and beverage sector. In recent years, other multinational corporations, including Nestle and Mondelez, have also increased their investments in India, driven by the rising demand for their products. For instance, Nestle inaugurated a food processing unit in Odisha worth 894.10 crore last year, and Mondelez has committed to investing 4,000 crore in India over four years.

PepsiCo India itself has been actively investing in the country. Last year, the company announced a 778 crore investment to establish a food manufacturing plant in Assam, expected to become operational in 2025. Additionally, in 2022, PepsiCo India had announced a 186 crore investment to expand its largest greenfield food manufacturing facility in Kosi Kalan, Mathura, Uttar Pradesh, which produces Lay’s potato chips.

Varun Beverages, meanwhile, in its 2023 annual report had disclosed plans to enhance production capacities for juices and value-added dairy products within the year.

Talking about the new unit, George Kovoor, senior vice president, Beverages, PepsiCo India, said, “We aim to ramp up the production of our beverages to meet the rising demand in the country.”

In the fiscal year 2023, PepsiCo India reported a surge in its profit to 255 crore from 27.8 crore in the previous year, as per filings with the Registrar of Companies. Revenue soared 28.5% on year to 8,128 crore, driven by robust sales of both its food and beverage products, which include Lay’s chips and the Pepsi, Mirinda, and Tropicana beverage brands.

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Published: 02 Apr 2024, 03:10 PM IST

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