Food and beverages major PepsiCo India is aiming to double revenue from its snacks business in India in the next four years by expanding its product portfolio and reach in the country. Further, the company will start an experimental project on its biodegradable packaging material in one of the cities in North India by the end of this year, said a management official.
"We are aiming at doubling our revenue in the next four years. It would be mainly through expansion of our four existing brands -- Lays, Kurukure, Doritos and Cheetos," said Jagrut Kotecha, vice-president (snacks category), PepsiCo India. He added that the distribution network currently has around three million stores and this will be expanded to five million in four years, with a thrust on the rural market.
While he refused to divulge the current revenue of the company, it is said that its two major brands -- Lays and Kurukure -- are worth more than Rs 10 billion each and are growing fast. The total snacks market in India is around Rs 220 billion, growing at double digits, with around 3,000 players on the manufacturing side.
"For the last 18-24 months, we have been growing strongly at a double-digit rate across our portfolio. Lays has been the market leader in the potato chip category and has held its leadership for the past 23 years," he added.
The company has been keen on expanding its operations to the rural market and is seeing more growth opportunities in rural retailing. The growth in revenue would also mean the company is investing in research & development and manufacturing activities, he added.
At present, it has around three of its own manufacturing facilities and almost 14 third-party units where its products are manufactured. However, Kotecha did not divulge how much the company would be investing to achieve the goal.
He said that the Kerala floods have had an impact on the company's supplies to the state and it is currently taking stock of the same.
The company will start a pilot project on the biodegradable packaging material, using a plant-based raw material, in one of the cities in North India by the end of the year. The pilot, which might have a duration of 12-18 months, is meant to give the company an idea about the feasibility and viability of the model, he added.
The company had earlier announced its plans to reduce sodium in 75 per cent of its food portfolio by 2025. Till date, the company has been successful in reducing five per cent to 25 per cent sodium across various variants of its snacks master brands.