PepsiCo India will invest $70 million to build a food manufacturing plant in Uttar Pradesh, the company said on Friday. PepsiCo, the makers of Lay’s chips and Kurkure snacks, said it is part of its efforts to expand capacity in India’s growing packaged foods market. The local arm of the American company also said that it is true to its commitment to invest $2.1 billion in India by 2022, which is part of the $5.5 billion it had promised in November 2013.
The announcement comes a day after Prime Minister Narendra Modi took oath of office. PepsiCo’s global chairman and CEO Ramon Laguarta was among a host of senior executives of large businesses to congratulate Modi.
PepsiCo will invest along with its local bottling partners, as it looks to ramp up manufacturing capacity in India, a company statement said. Apart from creating direct employment, the greenfield plant will increase local sourcing and boost cold storage infrastructure, it added.PepsiCo, which sells Tropicana, 7Up, Mountain Dew and Kurkure chips, among others, services the domestic market through 62 food and beverage plants. The bottling operations are owned by its local partner Varun Beverages. The packaged snacks and foods market in India is expected to grow 22.3% between 2018 and 2022, according to estimates by research firm Euromonitor. PepsiCo is focussed on offering more local flavours to compete with strong regional brands.