India Takes Prime Slot In Pepsico'S Business Recast

The move is part of a major international restructuring in the company, which will take final shape in a few months. Apart from India, Russia and China also figure as special business units which would require a renewed thrust in the beverages business.

The special business unit concept will replace the old Pepsi system under which its international beverage business was split into geographical divisions, each comprising a group of countries.

Under the new plan, Pepsi's world operations (except the North American business) will be divided into 10 strategic business units, based on the growth potential of a country and not merely on geographical proximity.

 

At present, India forms part of the South Asia and Africa division that includes over 12 countries and reports to PepsiCo's regional headquarters in London. The London head in turn reports to the New York-based chief of PepsiCo International.

The new structure was streamlined in June with the merger of PespiCo International, the company which used to oversee businesses in the entire world except North America, with PepsiCo North America to form PepsiCola Company. However, the reporting structure continued to be the same. Pepsico executives, however, refused to comment on the restructuring plan. Pepsi's new thrust in China India and Russia comes after the company faced a major drubbing in Latin America with the defection to Coke of its largest bottler in Venezuela.