PepsiCo is investing $95m to build a new Lay’s crisps plant in India, strengthening its presence in the food and beverage industry.
The state-of-the-art factory, situated in Nalbari within the northeastern state of Assam, will cover a vast area of 44 acres and is projected to commence operations by 2025. Notably, this project will generate employment opportunities for approximately 500 individuals, both directly and indirectly contributing to the local economy.
An inauguration ceremony recently took place, graced by esteemed guests including Dr. Himanta Sarma, the state Minister, Eugene Willemsen, the CEO of PepsiCo’s Africa, Middle East and South Asia (AMESA) division, and Ahmed ElSheikh, the region president. Their presence symbolized the significance of this milestone for PepsiCo in Assam.
PepsiCo has also made a noteworthy commitment to promote gender diversity in the region by enrolling “at least” 75% female staff at the new Nalbari plant, thus bolstering women empowerment initiatives. This pledge aligns with PepsiCo’s broader mission to nurture talent and drive economic growth in India.
Expressing enthusiasm, Willemsen stated, “India is an integral part of PepsiCo’s growth strategy in the AMESA region, and we are devoted to investing in the country to enhance our capacities. As we enter this new decade, we remain focused on expanding our presence and availability across India.”
PepsiCo entered the Indian market in 1989 and has since become renowned for its diverse product range, which includes the Quaker breakfast cereal brand, Kurkure snacks, and popular beverage lines such as Pepsi, Tropicana, and Gatorade. Furthermore, it is essential to note that Just Food is in the process of confirming the number of other PepsiCo sites across the country.
The Lay’s crisps produced at the Nalbari plant will source potatoes locally. With an estimated annual requirement of 50,000 tonnes from Assam state, PepsiCo plans to establish a cold storage facility in the coming years, facilitating the storage of up to 60,000 tonnes of potatoes.
Prioritizing sustainable practices, the Nalbari plant will incorporate 80% renewable energy and locally sourced packaging materials, thereby minimizing its environmental impact.
Minister Sarma expressed his support by affirming, “We are dedicated to propelling Assam as a preferred state for investment, and we assure PepsiCo of our unwavering support for this environmentally conscious manufacturing plant. Additionally, PepsiCo India has committed to providing specialized training to empower women in Assam and equip them with valuable skills.”
This recent investment in India is in line with PepsiCo’s global expansion plans. In Asia, the company has also announced its return to Indonesia, marked by the construction of a snacks facility in Cikarang, West Java. Additionally, Bangladesh is set to benefit from a Lay’s factory expansion project unveiled earlier this year.
General Mills, a prominent US food giant, is also bolstering its presence in India. The company has earmarked Nashik city in Maharashtra state for a new Pillsbury baking mixes plant, showcasing its commitment to the Indian market.
Furthermore, Nestlé has recently pledged to invest over $500m in India by 2025, reinforcing its position as a key player in the food and beverage industry. Similarly, US snacks and confectionery giant Mondelez International has announced a significant investment of over $150m to expand its plant in Sri City, located in the state of Andhra Pradesh.
Keywords: food and beverage industry trends, food and drink business, food and drink consumer trends.
