PepsiCo's India confidence remains intact despite H2 uncertainties, CEO says

New Delhi: Food & beverage major PepsiCo is "cautiously optimistic" about its performance in the second half of 2026, as consumer demand remains resilient across urban and rural markets despite inflationary woes, said its India & South Asia CEO Jagrut Kotecha.

However, he noted that PepsiCo continues to monitor external uncertainties, including weather-related disruptions such as El Nino, as well as other global and domestic challenges that could influence consumption patterns.

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"H1 for us has been good, both on our food and beverage business," Kotecha said, adding that the growth was broad-based, spanning both portfolios, across geographies, and across urban and rural markets and channels.

Kotecha said the company's consumer and trade partner programmes had "resonated well" with stakeholders through the first half of the year.

On the outlook for the second half, the PepsiCo India CEO said demand signals remain strong, even as the company keeps a watchful eye on external headwinds.

"So, we will keep our eyes and ears to the ground. But as of now, we are cautiously optimistic about the second half performance also, and we are geared up for that," he said on the sidelines of FoodWorld India, organised by industry body Ficci.

However, global uncertainties and local challenges linked to weather patterns, such as El Nino, are being monitored closely, he added.

"I know there are uncertainties still around, but I think that consumption is still robust. Of course, the monsoon will decide how the rural demand develops, but we are still optimistic about it," Kotecha said.

On the company's India investment and expansion plans, Kotecha reiterated PepsiCo's long-term commitment to the country, calling it "one of our top priority markets" globally.

He noted that PepsiCo has continued investing in India over the past three decades.

The company recently commissioned its first company-owned snack food plant in Assam, which Kotecha said signals confidence in India's northeast as "the next frontier" of growth opportunity.

PepsiCo has also opened a concentrate flavours facility in Ujjain.

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Kotecha pointed out that of PepsiCo's nine such facilities globally, two are now located in India, a distinction, he said, no other country has.

"This shows our commitment to investing in India, for India, locally manufactured," he said.

The company has also secured land in Tamil Nadu for a new snacks manufacturing plant, Kotecha said, adding that PepsiCo will continue to scale up investments in the country in the coming years as its India business expands.

Earlier this month, PepsiCo, in its global earnings, said growth from the beverage and convenience food business in the Indian market contributed to its global revenue upswing in the second quarter of 2026.