Food and beverages major Pepsico expects India to be the growth driver of its AMENA (Asia, Middle East and North Africa) region and is investing here into capacity building and has plans to foray into new categories, said a top official.
According to a PTI report: Besides, Pepsico would also continue to work with marketplaces and its backward integration with the farmers on the ground to enhance its reach, he added.
The company is adopting the strategy to cater to consumer interests at different price points with its region specific offers by expanding portfolio.
“We want to be an engine of growth for AMENA (Asia, Middle East and North Africa) region and I believe that we have right to be (that),” Ahmed El Sheikh, President and CEO, PepsiCo India Region told PTI.
The company is aiming to double its turnover in the next seven to eight years in view of its India growth.
“The size of opportunity which we have here, this for us means that we need to double our business,” Sheikh was further quoted by PTI as saying.
On being asked about the timeframe to achieve this target, he told PTI it could be in “7 to 8 years”.
“The aim is that we would continue to grow in double digits…,” Sheikh was quoted by PTI as saying.
Presently, India is among top ten global markets globally. It is a part of AMENA region, which is one of the six zones of PepsiCo globally and had contributed 10 per cent of the total global net revenue.
The company is investing in expanding capacity, new categories, into marketplaces and focusing on their backward integration like cold infrastructures for products as potatoes at regional level.
Backward integration refers to the process in which a company purchases or internally produces segments of its supply chain.
Besides, Pepsico “would promote small offerings in certain categories in certain channels which are modern trade and e-commerce” as per its strategy.
“The company would have strategy which appeals to the different consumer groups and regions. This is what we are focusing right now to capture the growth,” he further told PTI.
The company is witnessing a faster growth in hydration and juices here in comparison to its range of fizz based soft drinks.
“Carbonated soft drinks are also growing but lesser than the growth of juice,” he was quoted by PTI as saying.
The company would also reduce fat, sodium and sugar in its products by transforming its portfolio.
Currently, beverages and food items contribute equally in Pepsico’s portfolio; however, it expects latter to grow slightly ahead of former in coming years.
In 2013, PepsiCo had announced to invest Rs 33,000 crore in India by 2020 to more than double the capacity of the business here.