PepsiCo India to invest ₹1,266 crore in flavour manufacturing plant in Madhya Pradesh

PepsiCo India is coming up with a ₹1,266-crore flavour manufacturing facility at Ujjain in Madhya Pradesh, the company said in a statement on Tuesday.

Spread over 22 acres, the plant is part of PepsiCo's expansion plans in India. It will also play a crucial role in increasing the company's beverage production capabilities.

"With support from the government of Madhya Pradesh, we aim to strengthen our footprint while driving impactful progress in enhancing the socio-economic landscape of the region," PepsiCo India and South Asia CEO Jagrut Kotecha was quoted as saying by PTI.

The manufacturing facility, whose construction will begin in 2024, is slated to be operational by early 2026. It will be PepsiCo's second flavour plant after the first one in Channo, Punjab.

George Kovoor, senior vice president of beverages at PepsiCo India, said, "This strategic investment not only strengthens our dedication towards providing the highest quality beverages to our consumers but also reinforces our responsibility to drive sustainable practices across our operations."

The new plant will run completely on renewable energy resources, reducing the carbon footprint by 1.9 metric tonnes per day. The company said the facility will also use zero liquid discharge technology to achieve close to 90% water efficiency.

PepsiCo is a major player in the fast-moving consumer goods (FMCG) sector, with a presence in more than 200 countries. The company's product portfolio includes Lay's, Cheetos, Gatorade, Doritos, Pepsi-Cola, Quaker and Mountain Dew.

In 2023, the packaged foods and beverages company's India business unit saw mid-single-digit organic growth. "For the full year, China and India each delivered mid-single-digit growth. Our organic revenue growth in 2023 led to notable marketplace results in many of our key markets," PepsiCo had said in its full-year earnings in February.

Overall, PepsiCo recorded a 9.5% organic revenue growth last year.