Pepsi looks to juice up kitty with Parle Agro brands

NEW DELHI: Pepsico India is learnt to be making a pitch for Prakash Chauhan-owned Parle Agro’s flagship fruitdrink brands—Frooti, Appy and N-Joi. Sources said the cola major has mandated a merchant banker to do a due diligence on the brands.

The PepsiCo India spokesperson said, “We don’t comment on market speculation.” Parle Agro director Nadia Chauhan said, “There is no chance that we will even consider selling out.”

PepsiCo Holdings CEO Sanjeev Chadha had recently said the company has identified an acquisition target, and sources said it is high on Parle Agro. The soft-drink giant has named wellness products such as juices and juice-based drinks as its biggest focus area now, in line with global president & CEO Indra Nooyi’s blueprint of growing the non-carbonated business through strategic buyouts.

Though PepsiCo is present in pure juices, it is looking at beefing up its portfolio by adding fruit drinks to it. This is largely because fruit-based drinks are much cheaper, cater to the mainstream market, compete directly with carbonated beverages on pricing, and are easier to manufacture.