Pepsi plans a $500-million splash in India
A trimmer Indra Nooyi, PepsiCo’s global chairman and CEO, addressed media on Sunday afternoon as a precursor to what will be the $39-bn cola and snacks major’s first-ever executive committee meeting in India.
By ET Bureau |
NEW DELHI: A trimmer Indra Nooyi, PepsiCo���s global chairman and CEO, addressed media on Sunday afternoon as a precursor to what will be the $39-billion cola and snacks major���s first-ever executive committee meeting in India.
Dressed in a chic black ensemble and several kilos less, Ms Nooyi is clearly symbolising the healthy lifestyle she so often advocates. Announcing a fresh $500-million (Rs 2,200 crore) investment in India over the next three years, Ms Nooyi said the 26 members of PepsiCo���s executive committee are here to see ���what makes India tick���.
Since Ms Nooyi took charge of the top job at PepsiCo ��� a company often accused of selling sugary drinks and salty snacks ��� she has been trying to change its complexion. The objective is to give it a makeover from an undifferentiated cola maker to a company that offers choices to every consumer.
She has been championing health products since she believes that���s the future and she wants to be the first one to come up with innovations.
So, is PepsiCo set to become a company that also sells cola? Ms Nooyi seems to think so. ���We want our portfolio to be balanced in India. And the challenge is to ramp up our health portfolio so fast that it is evenly divided between value-added products or good-for-you and better-for-you products, and aerated drinks and snacks known as fun-for-you products.���
Good-for-you and better-for-you products make up for 30% of the company���s beverage portfolio. And in case of snacks, the number is as high as 80%. This, Ms Nooyi said, is the direction PepsiCo will take further to achieve a balanced portfolio.
Another issue that she has caught on to early is retaining talent. An issue that���s close to her, Ms Nooyi has talked about PepsiCo���s ���talent sustainability��� project in almost every public forum. PepsiCo India, for example, has given the world 27 CEOs, an ���achievement��� Ms Nooyi says she���s especially proud of. No surprise then, that meeting the alumni is part of her packed schedule for India. ���You may get out of Pepsi, but it���s hard to get Pepsi out of your system,��� she believes.
Speaking on the financial crisis the US is dealing with, Ms Nooyi said: ���The problems of Wall Street have not yet trickled down to mainstream which is where we are. We fortunately continue to be growing at a robust pace.���
She has swung into action with a pilot project which will introduce healthier foods for people ailing from malnutrition and deficiencies ��� these products would be made available through a public distribution system. Knowing Ms Nooyi, she would like the results of the project ���tomorrow���, but PepsiCo���s chief scientific officer Mehmood Khan who���s heading the project said, ���It���s very important to get the product right. We are working on the ideal resource allocation for the project.���
The fresh $500-million investment for India will be infused, adding new manufacturing capacities, marketing infrastructure, sustainability and R&D. Elaborating on how bullish PepsiCo Inc is on India, she said the market is clocking double-digit growth in volumes.
Right after the committee meeting, Ms Nooyi will chair the high-profile ET Awards jury on September 24.
Dressed in a chic black ensemble and several kilos less, Ms Nooyi is clearly symbolising the healthy lifestyle she so often advocates. Announcing a fresh $500-million (Rs 2,200 crore) investment in India over the next three years, Ms Nooyi said the 26 members of PepsiCo���s executive committee are here to see ���what makes India tick���.
Since Ms Nooyi took charge of the top job at PepsiCo ��� a company often accused of selling sugary drinks and salty snacks ��� she has been trying to change its complexion. The objective is to give it a makeover from an undifferentiated cola maker to a company that offers choices to every consumer.
She has been championing health products since she believes that���s the future and she wants to be the first one to come up with innovations.
So, is PepsiCo set to become a company that also sells cola? Ms Nooyi seems to think so. ���We want our portfolio to be balanced in India. And the challenge is to ramp up our health portfolio so fast that it is evenly divided between value-added products or good-for-you and better-for-you products, and aerated drinks and snacks known as fun-for-you products.���
ADVERTISEMENT
Good-for-you and better-for-you products make up for 30% of the company���s beverage portfolio. And in case of snacks, the number is as high as 80%. This, Ms Nooyi said, is the direction PepsiCo will take further to achieve a balanced portfolio.
Another issue that she has caught on to early is retaining talent. An issue that���s close to her, Ms Nooyi has talked about PepsiCo���s ���talent sustainability��� project in almost every public forum. PepsiCo India, for example, has given the world 27 CEOs, an ���achievement��� Ms Nooyi says she���s especially proud of. No surprise then, that meeting the alumni is part of her packed schedule for India. ���You may get out of Pepsi, but it���s hard to get Pepsi out of your system,��� she believes.
Speaking on the financial crisis the US is dealing with, Ms Nooyi said: ���The problems of Wall Street have not yet trickled down to mainstream which is where we are. We fortunately continue to be growing at a robust pace.���
She has swung into action with a pilot project which will introduce healthier foods for people ailing from malnutrition and deficiencies ��� these products would be made available through a public distribution system. Knowing Ms Nooyi, she would like the results of the project ���tomorrow���, but PepsiCo���s chief scientific officer Mehmood Khan who���s heading the project said, ���It���s very important to get the product right. We are working on the ideal resource allocation for the project.���
ADVERTISEMENT
The fresh $500-million investment for India will be infused, adding new manufacturing capacities, marketing infrastructure, sustainability and R&D. Elaborating on how bullish PepsiCo Inc is on India, she said the market is clocking double-digit growth in volumes.
Right after the committee meeting, Ms Nooyi will chair the high-profile ET Awards jury on September 24.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
