PepsiCo to set up manufacturing plant in India to enhance Indian snacks market
The American company has been alloted 28 acres of land in the state’s Mannaparrai to produce snacks like potato chips.
INDIA – PepsiCo is planning to set up a manufacturing plant in Tamil Nadu as part of its strategy to expand its footprint in the Indian snacks and beverages market.
This initiative aligns with the Tamil Nadu government’s efforts to develop four food parks in the state: Mannaparrai, Theni, Nagapattinam, and Tindivanam. The government aims to boost the production and export of agro and processed foods through these parks.
The Indian food and beverages market size was valued at US$332B in 2023 and is expected to grow at a CAGR of 11.05% from 2024 to 2030, reaching US$691.47B by 2030, according to a study by Maximize Market Research.
In light of this projected growth, PepsiCo India is working to expand its offerings and establish manufacturing plants in various states throughout India.
In addition to the new facility in Tamil Nadu, PepsiCo India announced plans last year to set up manufacturing plants in Madhya Pradesh and Punjab, expected to become operational in 2025 or early 2026. Earlier in 2023, the company launched its first food manufacturing plant in Nalbari, Assam.
“India is one of the fastest-growing markets for PepsiCo in the AMESA region, and we are committed to investing in the nation to build capacity,” said Eugene Willemsen, CEO of PepsiCo’s AMESA region.
Recently, the snacks maker announced substantial investments aimed at catering to the diverse tastes of Indian consumers, reflecting the country’s rich food heritage and unique cooking styles.
Jagrut Kotecha, CEO of PepsiCo South Asia, emphasized the need to design a product portfolio that caters to the varied preferences of Indian consumers.
He noted that the company is analyzing trends in India, particularly regarding tastes, demographics, and health and wellness.
In the oatmeal category, PepsiCo faces competition from local companies such as Marico, although it retains a leading position in the base oatmeal market.
Additionally, PepsiCo collaborates with 30,000 potato farmers in India to source over 400,000 tons of chip-grade potatoes from several states, including Punjab, Gujarat, West Bengal, Madhya Pradesh, and Assam. The company also operates an agro R&D facility in Zahura, Punjab, focused on potato breeding.
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