PepsiCo plans to invest USD 5.5 billion in India by 2020

PepsiCo, the maker of Pepsi-Cola, Frito-Lay snacks and Tropicana fruit juice, plans to invest USD 5.5 billion in India by 2020, to expand its presence in the country, its Chief Executive, Indra Nooyi, has said.

PepsiCo's plans follow that of The Coca-Cola Co, the world's largest drinks maker, which said last June it would invest a total of $5 billion between 2012 and 2020 to grow its business in Asia's third-largest economy.

"PepsiCo is going to make an investment of 33,000 crores into India between now and 2020 that is five and a half billion dollars and this investment is going to be made in manufacturing, agriculture, in infrastructure and innovation," said Nooyi.

PepsiCo and Coca-Cola's investment plans, driven by a growing middle class population with higher disposable incomes, will hearten Indian officials who are trying to restore investor confidence after growth has fallen to a decade-low.

PepsiCo and its partners plan to invest in expanding the range of products, doubling production capacity and improving the selling and distribution network, especially in rural markets, the company said.

She added that PepsiCO shows great confidence in the country and its long-term growth prospects.

"The reason we are making the investment in India is because we believe India is a terrific growth story, a long term terrific growth story and PepsiCo has a great business in India and we believe this story is still unfolding and we want to grow in India, with India, for India and this investment shows our confidence in India and its long term growth prospects," she added.

The company has 38 bottling plants and three food plants in India and generates 10 billion rupees ($159 million) in annual sales from eight products it sells in the country, including Pepsi and Lay's potato chips.

PepsiCo said it will also invest in expanding its farming program in the country by providing farmers good quality seeds, technical help, bank loans and crop insurance.

PepsiCo, which entered India in 1990, intends to create 100,000 jobs through the additional investment, adding to the 200,000 people it already employs, directly and indirectly.